Business jihadist
FOUR months before his official retirement as the president and chief executive officer of Johor Corp (JCorp), Tan Sri Muhammad Ali Hashim, 63, sprang a surprise by announcing his immediate resignation at the company's board meeting, which he reportedly walked out, in July 2010.
JCorp is the parent company of Kulim (M) Bhd.
With a reputation for having ruled the corporate world like his own fiefdom as said by one banker familiar with him Muhammad Ali has attracted both praise and criticism.
On the one hand, he has made JCorp one of the most dynamic state investment arms, in terms of the breadth of businesses it now has in its stable. But detractors say that JCorp grew too fast, accumulating too much debt in the process.
Indeed at the height of the 1997/98 Asian Financial Crisis, JCorp was forced to enlist the help of the Corporate Debt Restructuring Committee to help restructure about RM10bil of debt the group had accumulated. Recently, Muhammad Ali told the media that he had stuck it out at JCorp during those tough days.
He then went on to make one of the group's most significant acquisitions, namely KFC Holdings (M) Bhd.
In 2006-2007 he led JCorp through the high-profile, tightly-contested tussle to win control of KFC through the latter's parent QSR Brands Bhd.
But again, Muhammad Ali is not free from controversy. Some quarters say that JCorp's subsidiary, Kulim, overpaid for its shares in QSR. But QSR shares are worth much more today. So, too, is Kulim's investment in New Britain Palm Oil Ltd, the London-listed larger palm oil company in Papua New Guinea.
JCorp today boasts more than 250 companies in its stable, giving it exposure to a wide range of sectors, from plantations and healthcare to restaurants, property and hotels, among others.
But debt remains a problem. As it stands, JCorp has about RM3.6bil in debt due for repayment in July 2012.
That's not all. Another beef with JCorp, especially from the investment community, is that the group has over the years entered into numerous related-party transactions within the companies in its stable.
Muhammad Ali graduated with a Bachelor of Economics honours degree from University Malaya in 1969. In 1985, he participated in the senior executive programme at Stanford University in the United States.
Today, he still sits as chairman of several companies under the umbrella of JCorp even though he has already resigned from the helm of the conglomerate. These companies include Kulim, QSR and KFC, in which he is also their non-independent non-executive director, as well as KPJ Healthcare Bhd, Sindora Bhd, Johor Land Bhd and Damansara Realty Bhd.
But rumours have been swirling in the corporate world that Muhammad Ali's helm at those companies will also cease soon following his resignation from JCorp.
A strong advocate of what he calls business jihad, Muhammad Ali believes that business is a good way to help people, as it can create wealth and jobs and eliminate poverty. He argues that Muslim companies should be serious about reforming their business and conforming their strategies and management style to Islamic principles. He has also urged more Muslim companies to fully integrate themselves into mainstream business, and take the lead in Islamising the present conventional capitalist system and economic order.
Stories by CECILIA KOK
cecilia_kok@thestar.com.my
JCorp is the parent company of Kulim (M) Bhd.
His reason the environment there was no longer conducive for him to stay on.
Muhammad Ali had been at the helm of the state government-linked conglomerate for 28 years from January 1982.
With a reputation for having ruled the corporate world like his own fiefdom as said by one banker familiar with him Muhammad Ali has attracted both praise and criticism.
On the one hand, he has made JCorp one of the most dynamic state investment arms, in terms of the breadth of businesses it now has in its stable. But detractors say that JCorp grew too fast, accumulating too much debt in the process.
Indeed at the height of the 1997/98 Asian Financial Crisis, JCorp was forced to enlist the help of the Corporate Debt Restructuring Committee to help restructure about RM10bil of debt the group had accumulated. Recently, Muhammad Ali told the media that he had stuck it out at JCorp during those tough days.
He then went on to make one of the group's most significant acquisitions, namely KFC Holdings (M) Bhd.
In 2006-2007 he led JCorp through the high-profile, tightly-contested tussle to win control of KFC through the latter's parent QSR Brands Bhd.
But again, Muhammad Ali is not free from controversy. Some quarters say that JCorp's subsidiary, Kulim, overpaid for its shares in QSR. But QSR shares are worth much more today. So, too, is Kulim's investment in New Britain Palm Oil Ltd, the London-listed larger palm oil company in Papua New Guinea.
JCorp today boasts more than 250 companies in its stable, giving it exposure to a wide range of sectors, from plantations and healthcare to restaurants, property and hotels, among others.
But debt remains a problem. As it stands, JCorp has about RM3.6bil in debt due for repayment in July 2012.
That's not all. Another beef with JCorp, especially from the investment community, is that the group has over the years entered into numerous related-party transactions within the companies in its stable.
Muhammad Ali graduated with a Bachelor of Economics honours degree from University Malaya in 1969. In 1985, he participated in the senior executive programme at Stanford University in the United States.
Today, he still sits as chairman of several companies under the umbrella of JCorp even though he has already resigned from the helm of the conglomerate. These companies include Kulim, QSR and KFC, in which he is also their non-independent non-executive director, as well as KPJ Healthcare Bhd, Sindora Bhd, Johor Land Bhd and Damansara Realty Bhd.
But rumours have been swirling in the corporate world that Muhammad Ali's helm at those companies will also cease soon following his resignation from JCorp.
A strong advocate of what he calls business jihad, Muhammad Ali believes that business is a good way to help people, as it can create wealth and jobs and eliminate poverty. He argues that Muslim companies should be serious about reforming their business and conforming their strategies and management style to Islamic principles. He has also urged more Muslim companies to fully integrate themselves into mainstream business, and take the lead in Islamising the present conventional capitalist system and economic order.
Stories by CECILIA KOK
cecilia_kok@thestar.com.my
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