KUALA LUMPUR (March 9): Datuk Wira Azhar Abdul Hamid is understood to have tendered his resignation as the chairman of the board of Mass Rapid Transit Corp Sdn Bhd (MRT Corp) barely 10 months into the role, source familiar with the matter told The Edge.
It is understood that Azhar, who was appointed in mid-May last year, resigned earlier in the week, after having "a difference of opinion" on the implementation of the Mass Rapid Transit 3 (MRT3) Circle Line project.
"Azhar is leaving as he is not in agreement on some of the key terms of the MRT3 project," the source said. Azhar, however, declined to comment when contacted.
Interestingly, Azhar's resignation came shortly after the federal government gave MRT Corp the green light to proceed with the implementation of the MRT3 Circle Line project. The federal government's approval for the MRT3 Circle Line project was obtained last Friday (March 4).
The tender for the project is still pending, hence the cost of the development is still unknown. The MRT3 Circle Line will span about 50km and have a circular alignment running along the perimeter of the city of Kuala Lumpur, and comprise elevated and underground sections and have 31 stations.
It is not known who will replace Azhar at MRT Corp, or if the selection process has already commenced.
For its financial year ended Dec 31, 2020, MRT Corp's after-tax loss widened to RM8.94 billion, 22.4% more compared with RM7.3 billion a year ago.
As at end-December 2020, MRT Corp's accumulated losses had ballooned to RM52.98 billion, with total assets of RM4.03 billion and total liabilities of RM2.81 billion.
The first line of the MRT to be implemented was the 46km Sg Buloh-Kajang Line, which runs through the city centre of Kuala Lumpur to Kajang. The line was fully operational in July 2017.
Meanwhile, the second line, dubbed the Putrajaya Line, which is 57.7km in length and set to commence operations next year, will span from Kwasa Damansara, a new township development in north-west Kuala Lumpur, to Putrajaya, the federal administrative centre.
MIDF Research wrote in a research note that the construction of the MRT3 will be spread over a 10-year period, which some quarters have commented it is too long. And the research outfit commented the costs are pegged to be RM31.22 billion, of which RM19.4 billion is slated for the underground portion of the infrastructure development.
Other rail sources, however, said that the figure could be much higher.
This is not Azhar's first stint at MRT Corp. Between 2011 and 2014, Azhar helmed the then newly formed MRT Corp as its first chief executive officer (CEO), but stepped down after an accident at a Sungai Buloh MRT worksite claimed the lives of three foreign workers. In stepping down, Azhar took responsibility for the mishap — a move seldom seen in corporate Malaysia.
When he rejoined MRT Corp as chairman, the transport outfit's CEO Datuk Mohd Zarif Hashim said, "Azhar brings with him vast industry experience that will help steer MRT Corp into the future.
"As the founding CEO of MRT Corp, Azhar's experience and knowledge will be invaluable as the organisation moves forward to develop the Johor Bahru-Singapore Rapid Transit System Link Project and the exciting MRT3 Circle Line project, while at the same time, to complete the MRT Putrajaya Line."
Prior to his appointment as chairman of MRT Corp, Azhar was the chairman of plantation outfit FGV Holdings Bhd and its 51% unit MSM Malaysia Holdings Bhd from 2017 to April 2021.
Before FGV and MSM, he was the managing director of publicly traded Malakoff Corp Bhd from 2016 until 2017, and during the same period, he was also the chairman of Tradewinds Corp Bhd, where he was the managing director from 2015 to 2016. Both Malakoff and Tradewinds are controlled by businessman Tan Sri Syed Mokhtar Albukhary.