This article first appeared in The Edge Malaysia Weekly on August 12, 2024 - August 18, 2024

MISC Bhd (KL:MISC) announced on Aug 5 the resignation of its president/group CEO and non-independent executive director Capt Rajalingam Subramaniam, who took office less than two years ago in October 2022.

He also stepped down as non-independent and non-executive director of Malaysia Marine and Heavy Engineering Holdings Bhd (KL:MHB), a 66.5%-owned unit of MISC.

The reason stated for his resignation in the filing to Bursa Malaysia is “to pursue other interests” after more than 40 years at the group, and “having qualified from MISC’s Malaysian Maritime Academy Sdn Bhd”.

He will be replaced by Zahid Osman, who was appointed chief operating officer of MISC on June 1 and previously with the oil major Shell for more than 20 years.

Rajalingam’s exit came as a surprise, given the short stint.

A previous chieftain who served less than two years was Datuk Seri Amir Hamzah Azizan from January 2009 to June 2010. Amir resigned from MISC to helm Petronas Dagangan Bhd (KL:PETDAG) as its managing director and CEO.

Rajalingam’s predecessor Datuk Yee Yang Chien, who had helmed MISC for more than seven years, retired at age 54.

There is a distinction between retirement and resignation.

While the narrative has been that Rajalingam will be taking a break, many wonder whether there are other reasons behind the abrupt exit.

Under Rajalingam’s watch, MISC had been performing well in terms of earnings. His departure comes at a time when news of MISC taking a stake in Bumi Armada Bhd ­(KL:ARMADA) has been making the rounds.

MISC did not deny the possibility of buying into Bumi Armada when queried by The Edge some weeks ago. The shipping group replied by saying that “MISC actively explores investment opportunities that have the potential to add value to its shareholders. MISC will certainly communicate with relevant stakeholders if and when there is material development”.

For international conglomerates such as MISC, a changing of the guard is rare mainly because of stability and strategic reasons.

Rajalingam’s resignation has sparked speculation, some of which might not help the situation. Perhaps a more detailed explanation will put this matter to rest.

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