This article first appeared in The Edge Financial Daily on July 31, 2018 - August 6, 2018

KUALA LUMPUR: Handal Resources Bhd announced yesterday that Sunildeep Singh Dhaliwal will be taking over the position of group managing director (MD) effective immediately.

Sunildeep, 44, replaces Mallek Rizal Mohsin, who has been redesignated executive vice-chairman. Mallek Rizal, 52, has also been appointed the group’s risk management committee chairman.

At the same time, its founder and executive chairman Datuk Mohsin Abdul Halim, 75, has been redesignated group non-independent non-executive chairman.

Handal also named three new independent non-executive directors, namely Tan Sri Dr Mohd Munir Abdul Majid, the founding chairman of the Securities Commission Malaysia; Tengku Baderul Zaman Sultan Mahmud; and Jacqueline Fong Yean Yee.

Mohd Munir will also assume the role of chairman of the nomination committee, while Fong will assume the role of chairman of the remuneration committee. Mohd Munir is currently chairman of Bank Muamalat Malaysia Bhd.

However, the group will see the departure of three board members, namely Muhammad Asri Mohd Rafa’i, Lokman Razani Abdul Razak and Chau Sik Cheong, citing other work commitments.

In a statement yesterday, the offshore crane services provider said the changes were intended to strengthen the board’s composition, independence and accountability, apart from embracing diversity.

“The restructuring exercise is also in line with the group’s efforts to raise its corporate governance standards, as previously both Mohsin and Mallek Rizal were holding executive positions on the board,” said Handal.

“On that note, the redesignation of Mohsin to a non-executive role will allow him to focus on leading the board and promote good corporate governance in the group.

“Correspondingly, Mallek Rizal’s promotion will ensure continuity in management and a clear succession plan for the Handal group,” it added.

Sunildeep is a co-founder and executive director of Borneo Seaoffshore Sdn Bhd, which recently emerged as a substantial shareholder of Handal with a 7.357% stake or 11.75 million shares. Sunildeep owns 45% of Borneo Seaoffshore.

Incorporated in 2005, Borneo Seaoffshore Group provides vessel support, maintenance of pipelines, structures and platforms.

Tengku Baderul Zaman is also a director of Borneo Seaoffshore.

According to Handal, Tengku Baderul Zaman brings with him strong business acumen and experience in both listed and non-listed companies in the construction, oil and gas (O&G) and mining industries.

Fong was formerly an investment banker with more than 15 years of experience in the origination of debt and equity capital market transactions in Kuala Lumpur, Kuching and Jakarta, it added.

“We believe we can capitalise on Sunildeep’s experience and strong networks in the O&G industry to drive the group forward,” said Mohsin.

Sunildeep said he sees great potential in Handal, especially since it is one of the few offshore crane service providers in the region.

Handal has been reporting losses annually since the financial year ended Dec 31, 2016 (FY16) mainly due to slower capital expenditure by its customers amid challenges in the O&G sector. Its net loss narrowed to RM2.43 million in FY17 from RM13.57 million in FY16, while revenue fell 23.4% to RM63.64 million from RM83.11 million.

Handal shares surged as much as 9% in early trade yesterday, to hit an intraday high of 53.5 sen before paring some of their gains to close at 53 sen, bringing a market capitalisation of RM84.58 million.