This article first appeared in The Edge Financial Daily, on December 15, 2015.

KUALA LUMPUR: After 10 years at the helm of DRB-Hicom Bhd, Tan Sri Dr Mohd Khamil Jamil is stepping down as group managing director at the automotive conglomerate on March 1, 2016. Taking over will be Datuk Seri Syed Faisal Albar Syed Albar, who is currently chief executive officer (CEO) of Malakoff Corp Bhd until Dec 31, 2015.

In a filing with Bursa Malaysia yesterday, DRB-Hicom said Mohd Khamil, 59, remains group managing director of DRB-Hicom until March 1 in order to allow time for the handover to Syed Faisal.

“[After which,] Syed Faisal will assume overall management responsibility and control of the DRB-Hicom group,” it added.

Prior to that, Syed Faisal, 50, will first join the group as its group CEO effective Jan 4, 2016.

“[Mohd] Khamil is due for retirement on Jan 20, 2016, upon reaching the retirement age of 60 years,” said DRB-Hicom, adding that Mohd Khamil will remain a director of the group.

Mohd Khamil joined DRB-Hicom as its deputy group chairman on July 19, 2005, and assumed full executive function/duty effective Aug 16, 2005. He assumed his current role on March 1, 2006.

Under his leadership, DRB-Hicom took over Proton Holdings Bhd after securing a 90% interest through its takeover offer in May 2012, and the national carmaker was subsequently delisted from Bursa. DRB-Hicom also took control of loss-making British sports car maker Lotus Group International Ltd when the group acquired its parent Proton.

Mohd Khamil also saw the launch of Proton Preve, a new model touted to be a global car in April 2012 and Suprima S in August 2013.

Mohd Khamil’s departure comes at a delicate time for DRB-Hicom, which slipped into a net loss of RM15.82 million for the six months ended Sept 30, 2015 (1HFY16), compared with a net profit of RM200.93 million a year ago, dragged down by its automotive and property sectors. It also reported a lower revenue of RM6.2 billion in 1HFY16, down 10.7% from RM6.95 billion in 1HFY15.

PublicInvest Research analyst Nur Farah Syifaa’ Mohamad Fu’ad told The Edge Financial Daily that the appointment of Syed Faisal is still under tycoon Tan Sri Syed Mokhtar Al-Bukhary’s stable of companies, which means that the group is looking at repositioning its people.

“DRB-Hicom’s strategy appears to be to strengthen the service sector, and Syed Faisal will be able to come in and contribute to the group’s logistics business, due to his experience at Konsortium Logistik Bhd (KLB) and Pos Malaysia Bhd,” Nur Farah said.

She added that the group’s earnings remain being dragged by loss-making Proton, but its defence and aviation business segments are able to cushion weakness in the auto sector.

Syed Faisal is an accountant by profession and he brings with him extensive corporate experience in various industries. Among the key positions held by him previously were as CEO of Gas Malaysia Bhd and The New Straits Times Press (M) Bhd. He was also executive director of KLB and group managing director of Pos Malaysia.

“Syed Faisal’s career spans various executive positions and his personal qualities, wealth of experience and proven leadership track record in growing revenue and profit, conceiving and executing strategic plans are great assets to the group,” said DRB-Hicom.

DRB-Hicom (fundamental: 0; valuation: 2) shares closed down one sen or 0.83% at RM1.20 yesterday, with a market capitalisation of RM2.34 billion.