Munir resigns as MAS chairman

[BC Tam 2]

Munir resigns as MAS chairman

By Lee Wei Lian

July 20, 2011

 

KUALA LUMPUR, July 20 — Tan Sri Datuk Mohamed Munir Abdul Majid has resigned after seven as chairman of Malaysia Airlines, the national carrier announced to Bursa Malaysia today.

 

No reason was given in the announcement but a statement sent to the media said that Munir (picture) is stepping down as chairman when his current term expires on July 31.

 

Munir’s departure comes at a time when the airline is expected to come under pressure from Singapore Airlines’ new long-haul budget carrier on top of the increasing competition it faces from existing low-cost carriers, chiefly AirAsia.

 

Its share price has also plummeted to lows not seen in the past nine years after it shocked analysts with a RM242 million net loss for the first quarter of this year, far below consensus estimates of a RM295 million net profit.

 

Analysts polled by The Malaysian Insider were “neutral” on Munir’s departure as they feel the chairman has less of an impact than the chief executive.

 

One analyst said, however, that the market could potentially perceive Munir’s decision to step down at the end of his term as possibly either due to internal conflict or a need for transformation.

 

“It depends on how the market will view it,” he said.

 

He added, however, that he felt that it would be good for someone new to bring fresh ideas to the airline.

 

The government’s investment holding arm, Khazanah Nasional Berhad, holds a 69.4 per cent stake in Malaysia Airlines.

 

Requests for comment to Khazanah were not returned at the time that this article was published.

 

Munir joined Malaysia Airlines in 2004, during a period when the national carrier was embroiled in controversy over allegations of mismanagement.

 

Since then, the airline underwent a series of re-structuring exercises including the hiring of current Pemandu chief, Datuk Seri Idris Jala, as CEO from 2005 till 2009.

 

The national airline is currently on an ambitious path to revamping its fleet.

 

Munir was formerly group editor of the New Straits Times where he served from 1979 to 1986; chairman and chief executive of CIMB from 1986 to 1993; and first and founding chairman of the Securities Commission from 1993 to 1999.

 

He also served on the boards of the then Telekom Malaysia Berhad and Celcom Malaysia Berhad where he was chairman from 2002 to 2004.

 

from here

[Mohd Azizul Ramli 2]

Interesting pointers raised by the article (all of which suggested that the Chairman is pretty useless all these years).

 

Going forward, I hope the successor will be someone of worthy credibles for the job. I do not think an organization as large as MAS can do without a Chairman (someone needs to chair its BOD meetings).

[Raymund Yeoh 1]

Looking at the Munir's previous credentials before becoming MAS chairman, clearly he has no experience in running an airline.

Just hope MH or Khazanah or the gomen will be "genuine" & "smart enough" to appoint or hire a replacement who knows how to run an airline and turn around the airline.....

 

I wonder during his tenure here as MAS chairman, does anyone know what he did to help turn the airlines around besides chairing BOD meetings ??....

 

 

[Andi C 0]

They need I.J. back

[Majdi 0]

Looking at the Munir's previous credentials before becoming MAS chairman, clearly he has no experience in running an airline.

Just hope MH or Khazanah or the gomen will be "genuine" & "smart enough" to appoint or hire a replacement who knows how to run an airline and turn around the airline.....

 

I wonder during his tenure here as MAS chairman, does anyone know what he did to help turn the airlines around besides chairing BOD meetings ??....

 

 

what about MAS's advisor then? what is his actual role...? seriously....

 

http://www.thenutgraph.com/tun-abdullah-appointed-as-mas-advisor/

[Lock SH 0]

Does MAS need a chairman in the first place? .........

 

 

[Johan Z 0]

Which one is higher chairman or CEO? I think chairman, the title says it all. MAS really needs someone strong (and diplomatic at the same time) to deal our sticky beak government.

[KK Lee 5]

Chairman of GLC is someone trusted and appointed by the pm personally to safeguard the interest of the gomen and to ensure pm’s wish is executed by the management.

 

Chairman of GLC is serves at the pm’s pleasure; for the current chairman to ‘resign’ means the next chairman or candidates is identified. Given the reason why IJ was promoted to be a minister, he is unlikely to be appointed as the chairman of MH.

[Cheng Long 0]

what about MAS's advisor then? what is his actual role...? seriously....

 

http://www.thenutgraph.com/tun-abdullah-appointed-as-mas-advisor/

 

The one well known for sleeping on the job..? He should be axed.

[Johan Z 0]

MAS really needs to do a cost-cutting measure in their administration and remove unnecessary people rather than removing hot towel, footrests and menu card from their Economy class. At the end of the day, passengers were the one ensuring their survival... ooh gomen is there to bail them out of red.

[BC Tam 2]

MAS really needs someone strong (and diplomatic at the same time) to deal our sticky beak government.

Such a person not likely to make it to shortlist of candidates even

[flee 5]

Since when are appointments to GLCs made on merit? Even Petronas (the best run GLC) gets political interference. I am sure that MH will appoint another retiring civil servant as a reward for his blind loyalty to his political masters.

[Mushrif A 3]

Looking at the Munir's previous credentials before becoming MAS chairman, clearly he has no experience in running an airline.

Just hope MH or Khazanah or the gomen will be "genuine" & "smart enough" to appoint or hire a replacement who knows how to run an airline and turn around the airline.....

 

I wonder during his tenure here as MAS chairman, does anyone know what he did to help turn the airlines around besides chairing BOD meetings ??....

 

 

He doesnt need to have an experience running an airline. Idris Jala, Tony Fernandes too did not have any prior experience before running tehir respective airlines.

 

But more importantly, the chairman's position is non-executive. Hence, he doesnt run the airline.

[Mike P 0]

Yes, strip the chairman post. The salary itself could contribute a lot to the company's revenue!

[flee 5]

Many companies have the CEO as chairman too. MH could do that and save a fortune in salaries and director's fees for this non-executive post.

[Raymund Yeoh 1]

He doesnt need to have an experience running an airline. Idris Jala, Tony Fernandes too did not have any prior experience before running tehir respective airlines.

 

But more importantly, the chairman's position is non-executive. Hence, he doesnt run the airline.

 

 

Mushrif, your comments holds water. However IJ and TF are business men and have experience in running multi national companies/conglomorates and turing profits at its max....

 

Just look at the CV for Munir before becoming chairman of MAS.....his portfolio doesn't really hold much water or in plain simple english have any significant contribution to those companies that hired him

 

 

 

I do agree with flee and Mike P....they can have the CEO and chairman being the same person....

 

 

[Mushrif A 3]

 

Just look at the CV for Munir before becoming chairman of MAS.....his portfolio doesn't really hold much water or in plain simple english have any significant contribution to those companies that hired him

 

 

Which was why I said the chairman's position at MH is a non-executive one. It's more for lobbying and cutting ribbons (& the like) - for lack of a better description - he doesnt run the show. I would imagine MH, given its business activities, still needs a chairman to deal with governments, bureaucrats (in M'sia and elsewhere) and regulatory bodies, leaving the CEO & team to focus on the core activities.

[Radzi 2]

Which one is higher chairman or CEO? I think chairman, the title says it all. MAS really needs someone strong (and diplomatic at the same time) to deal our sticky beak government.

 

Basically, Chairman = Agong, MD = Prime Minister.

[Mushrif A 3]

Basically, Chairman = Agong, MD = Prime Minister.

 

If the chairman is non-executive. Many companies have Executive Chairman positions. Perhaps equating to "Absolute Monarchy"?

[Cheng Long 0]

Mushrif, your comments holds water. However IJ and TF are business men and have experience in running multi national companies/conglomorates and turing profits at its max....

 

Just look at the CV for Munir before becoming chairman of MAS.....his portfolio doesn't really hold much water or in plain simple english have any significant contribution to those companies that hired him

 

 

 

I do agree with flee and Mike P....they can have the CEO and chairman being the same person....

 

I remember Munir as someone who came up with the 1st wife, 2nd wife polygamy analogy.. It gives you a glimpse of the type of mentality and IQ needed to be a chairman in a GLC.

[BC Tam 2]

I would imagine MH, given its business activities, still needs a chairman to deal with governments, bureaucrats (in M'sia and elsewhere) and regulatory bodies, leaving the CEO & team to focus on the core activities.

Judging by the manner in which the red competitor has in recent times found favour in eyes of the cable anchors (hey, even the good Doc M deemed it worth his while to travel to STN with D7 !) is probably indicative that the soon to be ex-chairman hasn't been too successful at his lobbying function

Furthermore, when you have Mdm Rafidah at the opposing corner, better make sure you have what it takes to put up a decent show, otherwise beat a retreat while it's still honourable

(my simpleton's take on the scenario anyway )

Edited July 21, 2011 by BC Tam

[Mohd Suhaimi Fariz 2]

Looks like the new chairman will be Tan Sri Dato' Md Nor Yusof, former MH MD & currently Chairman of CIMB

[flee 5]

KUALA LUMPUR, July 29 (Bernama) -- Malaysia Airlines System Bhd (MAS) has appointed Tan Sri Md Nor Yusof as Chairman, effective August 1.

 

Md Nor would replace Tan Sri Datuk Dr Mohd Munir Majid, who will retire as Chairman on July 31, MAS said in a statement Friday.

 

"I am happy to be back at Malaysia Airlines, this time as its chairman. There are tremendous challenges facing the company which must be addressed swiftly.

 

"I look forward to the full cooperation of board members and staff at Malaysia Airlines, many of whom I already know, in taking the company on the path of sustainable profitability," Md Nor was quoted as saying in the statement.

[Ikman Ikreza 0]

Tan Sri Md Nor Md Yusof now serves as the chairman of Khazanah Nasional Bhd's executive committee.

 

Kuala Lumpur: Malaysian Airline System Bhd (MAS) yesterday announced that Tan Sri Md Nor Md Yusof will be its new chairman effective August 1.

 

Md Nor was formerly MAS managing director before becoming executive chairman of the Securities Commission until March 31 2006.

 

He currently serves as the chairman of Khazanah Nasional Bhd's executive committee.

 

Md Nor also sits on the board of several companies and institutions, including Malaysian Agrifood Corp Bhd and Pelaburan Hartanah Bhd, and is also a trustee of Yayasan Khazanah.

 

He was president and CEO of Bank of Commerce (M) Bhd which is now CIMB Bank Bhd.

 

Read more: Md Nor is MAS chairman http://www.btimes.com.my/articles/mezz-2/Article/#ixzz1Tbo6a3KG

[KK Lee 5]

Given he was MD of MH, very likely he will offer more 'guidance' to the executives especially to unwind BTP that entangled him and likely by default become executive chairman.

Edited July 31, 2011 by KK Lee