Kamaruzzaman Abu Kassim

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COVER STORY
LEADING NATIONAL CORPORATION IN VARIOUS FIELDS. FROM A SMALL PLANTATION-ORIENTED
ESTABLISHMENT OF MERELY 7 STAFF IN THE EARLY 1970’S, OVER THE YEARS, JCORP HAS BUILT
THE BRAND BIGGER THAN ITS VARIOUS HOMEGROWN PRODUCTS – ANY WAY YOU SLICE IT! TODAY,
EMPLOYING MORE THAN 63,000 PEOPLE ACROSS 270 COMPANIES AND ASSOCIATED FIRMS, JCORP
IS ONE OF THE BIGGEST EMPLOYERS IN THE COUNTRY AND OFFERS SPECIALIST SERVICES SPANNING
ALMOST EVERY ASPECT OF THE MARKET.
PROPELLED FORWARD BY ITS UNITED STRENGTH AND COMMITMENT TOWARDS CORPORATE AND
SOCIAL EXCELLENCE, THE GROUP HAS EVOLVED AT A PHENOMENAL RATE OVER THE YEARS AND IS
NOW LOOKING TO EXPAND ITS REGIONAL AND GLOBAL FOOTPRINT.
The BrandLaureate talks to YB Dato’ Kamaruzzaman Abu Kassim, President
and Chief Executive of JCorp, as he shares about the recent developments
of the Group and his personal thoughts.
Johor Corporation is well entrenched in the country’s business and
development with an impressive record of 44 fruitful years. Can you share
with us the success story and what contributed to it?
YB Dato’
Kamaruzzaman Abu Kassim
PLOTTING THE COURSE OF
A BILLION-DOLLAR BRAND
WITH JUDICIOUS FINESSE
by Ida Ibrahim
YB DATO’ KAMARUZZAMAN ABU KASSIM, PRESIDENT AND CHIEF EXECUTIVE OF JOHOR
CORPORATION (JCORP) IS BOLSTERING MORE THAN AN IMPRESSION OF THE JCORP BRAND. AS
ONE OF THE PIVOTAL FIGURES TO GROW AND EVOLVE ALONG WITH THE ENTITY FOR MORE THAN
23 YEARS, THE VIBRANT EXTRAORDINAIRE IS STEERING IN GREAT BREAKTHROUGHS FOR THE
GROUP VIA ITS MANIFOLD BUSINESS INTERESTS IN HEALTHCARE, PROPERTY DEVELOPMENT,
FOOD & SERVICES, TOURISM & LEISURE INDUSTRIES, AS WELL AS ENTREPRENEUR BUSINESS.
WITH ONE OF THE MOST COMPREHENSIVE CORPORATE PORTFOLIOS AND VARIOUS AWARDS
FOR EXCELLENCE NATIONWIDE AND REGIONALLY, INCLUDING THE BRANDLAUREATE BILLION
DOLLAR BRAND AWARD 2014-2015, THE GROUP HAS SPREAD ITS WINGS TO BECOME A
THE BRANDLAUREATE • BUSINESS WORLD REVIEW
The success story of JCorp has evolved over time. The passing of the Johor
Enactment in 1968 enabled the commencement of Johor State Economic
Development Corporation (JSEDC) through the alienation of RM10 million
State Government loans, mainly to acquire Tebrau Estate stretching across
some 3800 acres of land, followed by a bold step in controlling Kulim
(Malaysia) Berhad (Kulim), formerly a British plantation multinational listed
in London Stock Exchange (LSE).
With a strong plantation footprint, the dynamics changed with the
idea of entrepreneurship a decade later, when healthcare business
was institutionalized in 1981. This development was followed by the
formations of a few other homegrown flagships that became part of our
core businesses today.
As a result, from a plantation-oriented establishment of merely 7 staff in
1970, JCorp is now known as a prominent player in a number of major
sectors, which include Plantations, Healthcare, Foods and Restaurants
Services, Property, REITs, Hospitality and Entrepreneur Business, run by over
270 companies and 63,000 employees within the Group.
The reasons behind this wonderful achievement are mainly attributable
to the visionary leadership of my predecessors and our Islamic practice
of ‘Syura’, whereby the decision-making takes places in a constructive
and collective way through a well-structured reporting system on the
foundation of Transparency and Integrity.
What are the opportunities that 2015 has had to offer to JCorp’s various
portfolios?
Despite the bumpy ride in global economy attributable to the decline
in crude oil and commodity prices that affect some if not all economies
worldwide, JCorp remains optimistic and continues to navigate through the
challenging year with financial resilience and agility. We believe that in
every situation comes opportunity.
For instance, for the hospitality and health tourism segments, the weaker
Ringgit represents a significant advantage as JCorp’s long established
involvement in the industry will allow us to ride on Malaysia’s booming
tourism and medical tourism industry as we witnessed the uptrend in
terms of international patients to our hospitals nationwide and surge of
Singaporeans and shoppers of various nationalities to our newly-operating
KOMTAR-JBCC mall. Ultimately, Johor’s advantage as the southern gateway
to Malaysia is to be leveraged to its maximum potential.
Apart from that, the higher inflows of Foreign Direct Investments (FDI) and
Domestic Direct Investments (DDI) is expected from our industrial fronts
through a significant number of new leases of industrial areas and port
facilities, adding on to the existing RM62 billion of cumulated investments
over the last four decades.
Will we see the Corporation racing further into a more universal
powerhouse in the near future?
In our sector-focused operations, it is our priority to equally evaluate the
opportunity against the excitement of going global, the potentials as well
as the risks they probably pose to our businesses.
Notwithstanding, with our ready operations in the Asian and Australian
continents with concentration on Malaysia and ASEAN, JCorp has long been
part of the dynamic race.
As Malaysia becomes the ASEAN chair of the year, the integration of ASEAN
Economic Community is expected to be further emphasized, which translates
into more liberalization measures which will help offset lower oil prices
and help boost Malaysia’s highly diversified economy that coincides with
that of JCorp’s wide array of business activities. As the ASEAN factor sets
the pace, the race to become among the respected conglomerates is
unavoidable.
YB Dato’, as the key driving force behind the phenomenal growth and
success of Johor Corporation in recent years, kindly share with us some of
the contributions which you have brought to the table.
As I mentioned earlier, JCorp emulates the idea of ‘Syura’ or consultations.
Therefore, it is always about the idea of ‘us’ on top of ‘I’. As part of the
motivated and highly credible team with years of experience, I am proud
to be part of the growth engine of the State of Johor and Malaysia. As
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we are a leading State-Owned Conglomerate predefined
by our roles as a commercial entity, a state development
instrument and a caring organization that undertakes
Corporate Responsibility (CR) seriously, we have been
able to ensure that the roles are insofar discharged with
equilibrium.
As Malaysia is racing against time, we have to examine
the target of Vision 2020 from various perspectives. The
end of the last millennium and the decades that followed
had been challenging for the government of the day as
the new age economy is examined through the Volatility,
Uncertainty, Complexity and Ambiguity (VUCA) framework.
For instance, you can read the news on our corporate
exercises today, our success in developing Johor Affordable
Housing (RMMJ) tomorrow and of us creating smiles on the
faces of the village folks the day after. In the financial year
2014 alone, JCorp has contributed a substantial amount
of RM100 million for its CR undertaking, particularly in
Johor and Malaysia; and this is how we contribute and
add value to our business for a greater outreach. On the
same note, the success in realizing the issuance of the
government-guaranteed RM3 billion Sukuk Wakalah in
2012, with registered subscriptions of over 3.6 times,
raised the value to RM11 billlion.
Barring any unforeseen circumstances and looking at
the trajectory of our economic growth, I believe that
the target is achievable. Malaysia has come up with
several strategic plans such as the New Economic Model
(NEM), Government Transformation Plan (GTP), Economic
Transformation Plan (ETP), RMK-10 and RMK-11 to catalyze
the objective. It is of the utmost importance for everyone
to focus on the implementation.
Ultimately, this marked the successful implementation of
JCorp’s Corporate Restructuring Masterplan (CRMP) 2 at the
given time and contributed largely to the record-breaking
RM1 billion mark of profit before tax (PBT) in the same
year.
In JCorp, we are aligning our leadership managements
and operations with the end-states of the status of highincome developed nation. The NEM has outlined 5 key
characteristics of the national economy by 2020, namely:
What are some of the setbacks or challenges that you
have encountered and how did you overcome them?
The biggest challenge of course, is for JCorp to remain
sustainable against the harsh realities of economic
uncertainty that influence the way we operate and
how we capitalize our business on the back of lower
commodity prices and higher operational cost. As our
organization represents various business orientations, we
have to deliberate on different options and approaches to
sustain each business.
For instance, Kulim is now diversifying into the energy
sector while recapitalizing its plantation business in
Indonesia, following the divestment of its Papua New
Guinea and Solomon Islands plantations. In addition, we
launched the second Islamic REIT known as Al-Salam
REIT for retail and commercial properties that is poised
for larger growth and the maximizing of the value chain
in our foods and restaurants services operations.
We have also refurbished and rebuilt KOMTAR JBCC
and Galleria@Kotaraya to transform our malls and as a
prelude to Johor Bahru City Centre’s rejuvenation towards
becoming a world-class city by 2020.
As Malaysia has less than five more years to achieve the
status of high-income developed nation, in your opinion,
is it an achievable goal; and if so, what would be Johor
Corporation’s brand positioning then?
THE BRANDLAUREATE • BUSINESS WORLD REVIEW
In doing so, the government, private sector, civil societies
and private individuals each have a role to play towards
achieving the status of high-income developed nation.
-Market-led
-Well-governed
-Regionally integrated
-Entrepreneurial
-Innovative
Likewise, JCorp is gearing itself towards leading the
market in several key areas towards making our product
and service offerings highly competitive. We put a lot of
emphasis on the need for Business Integrity and Corporate
Governance.
JCorp is also looking at expanding its market beyond our
shores - focusing on the Asian region. Entrepreneurial
development is also currently being enhanced towards
producing more entrepreneurs in the future within the
economic value chain of our businesses.
Last but not least, JCorp is emphasizing on innovation as
part of its business continuity agenda towards responding
and adapting to the 21st Century economic landscape.
Are there any plans to rebrand Johor Corporation or some
of your market-driven businesses in the future to meet
the changing needs of consumers?
I strongly believe that for an organization like JCorp,
the best branding can be derived from high quality
and value-for-money products and service offerings. In
addition, I also believe that the employees of JCorp and
our corporate culture represent the best portrayal of the
JCorp brand.
In doing so, we are emphasizing on our business and
operations to be highly innovative. To achieve this
purpose, we are investing in our human capital. Our
branding partly is also derived from carrying out our
business operations on a responsible and sustainable
basis. We still maintain our vision statement and
corporate Tagline, namely Membina & Membela (To Build
& Nurture). However, we are injecting a new dimension to
the phrase, the notions of innovation and CR.
The term ‘Membina’ possesses a high innovation
connotation while ‘Membela’ carries the notion of CR.
These are our two main focuses with regards to out
institutional branding.
On a personal note, who inspires you the most and what
are the some of your work-life principles?
My mentor is always Prophet Muhammad (PBUH) as a
great leader and an honest businessman of his lifetime.
On that foundation, my work-life principle is to do the
right things right and full-heartedly. A leader shall lead
by example and become the role model to his disciples.
When you do it with the right attitude and intention,
regardless of the outcome, you will reward yourself with
the feeling of self-worth, satisfaction and contentment.
In addition, our sincerity in vesting the utmost potential
of our own self in dealing with business affairs dayin and day-out might drive us to give our best to the
organization. When you have tried your best, nothing else
matters. You will learn to appreciate the results and there
is nothing to regret.
Any words of wisdom or advice for aspiring young
entrepreneurs who wish to be as accomplished as you?
An opportunity is called opportunity as it doesn’t happen
every day. Seize every moment that is worth a try and
don’t be afraid of failures. Stay true to your words as they
have a lot to say about your personality. Remain positive,
as whatever you believe will ultimately turn into your
belief. In most instances, positive attitude brings along
positive outcome.
As one of the key companies
of JCorp, Kulim (Malaysia)
Berhad (Kulim) is highly
known for its very well
established palm oil business,
and over the years has carved
new paths with its experience
and proven ability into other
business segments. Now
having laid the foundations
of its new ventures, Kulim is
committed to the expansion
and growth of its new assets
to propel the multifaceted
brand to greater heights in
the coming years.
KULIM (MALAYSIA) BERHAD
Kulim traces its history back to 1933 when Kulim Rubber
Plantations Ltd. was incorporated in United Kingdom.
The company was later incorporated as a public limited
company and was listed on the Main Market of Bursa
Malaysia Securities Berhad in 1975. In 1976, JCorp became
the major shareholder of Kulim.
total Gross National Income (GNI) from RM125 billion to
RM178 billion by 2020, Kulim has proven to be one of the
players to galvanize this vision.
Kulim’s business portfolio is a progressive development
from its traditional business of palm oil, pursued in line
with its aim to sustain value creation for all its stakeholders
via the adoption of an evolving and balanced business mix.
Over the years, Kulim has grown to become a diversified
plantation company and continues to strengthen its
position by securing new hectarage while developing and
strengthening its intrapreneur ventures as well as continuing
to leverage on its scale, network, brand, services and people
to explore and foray into upstream Oil & Gas ventures.
In 2013, Kulim was presented with an opportunity to reenter Indonesia, having left it in 2007. The completion of
74 per cent acquisition in PT Wisesa Inspirasi Nusantara
(PT WIN) paved the way for Kulim and its local business
partner, PT Graha Sumber Berkah (PT GSB), to develop 40,645
hectares of new oil palm plantations in Central Kalimantan,
Indonesia. Being a socially and environmentally responsible
corporate citizen, Kulim is committed to the expansion of
its plantation operations, especially in Indonesia, guided by
the RSPO’s New Planting Procedures (NPP) – apart from the
relevant Indonesian regulations through a formal process
to secure the necessary documentation to obtain a release
permit prior to land development.
Plantation
Kulim is recognized as one of the leading palm oil groups
with operations currently spanning over Malaysia and
Indonesia. Kulim was amongst the earliest palm oil
producers to be certified to the Roundtable on Sustainable
Palm Oil (RSPO) standard. Kulim’s management and growth
strategy is fundamentally guided by Vision ‘30:30’ – which
aims to raise fruit yields to 30 tonnes per hectare and palm
product extraction rates to 30 per cent, balanced with
sustainable development principles.
Oil and Gas (O&G)
While plantation and agriculture dominate its business
profile, Kulim hopes to continue to explore, identify and
invest in businesses that offer superior long-term potential
for growth and profitability, with the aim to minimize
earning fluctuations so as to enable the Group to provide
attractive returns to its shareholders. Driven by its Balance
Business Strategy, Kulim is uncovering opportunities in
a new business dimension – O&G sector in the quest to
business growth and value deliverance to its shareholders.
Kulim Group is considered as one of the oil palm industry
leaders in terms of yield performance. In 2014, the Group
including JCorp produced a total of 969,235 tonnes of FFB,
an improvement of 4.10 per cent from 931,055 tonnes
achieved in the previous year.
Having established O&G support businesses such as the
transportation of clean petroleum products and fabrication
of O&G pipelines, Kulim aims at moving up the O&G value
chain to expand into upstream O&G activities involving
exploration, development and production – particularly in
Indonesia as new space is being created. This is to enable
Kulim to tap into strategic investment opportunities to
broaden its earnings base and generate sustainable growth.
As the palm oil industry has been identified as one of the
National Key Economic Areas (NKEA) to boost the country’s
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KPJ HEALTHCARE BERHAD
Listed on the Main Board of Bursa Malaysia since 1994, KPJ
Healthcare Berhad (KPJ) stands out as JCorp’s homegrown
brand that is well established in the nation’s private
healthcare industry.
Since its first hospital was opened in 1981, KPJ today is
Malaysia’s leading private healthcare service provider, with
25 hospitals across the country, two hospitals in Indonesia,
one hospital in Bangladesh and a sizeable share in a
hospital in Thailand.
In 2014, the healthcare brand achieved a market
capitalization of more than RM4.05 billion. Moving forward,
KPJ will continue to build more hospitals in other areas such
as KPJ Pahang Specialist Hospital and KPJ Perlis Specialist
Hospital– both which are expected to open this year.
As one of the highest rated hospitals in terms of
personalized patient care, KPJ aims to deliver patients the
very best experience, from diagnosis to treatment. In 2014,
KPJ hospitals provided services to more than 2.8 million
patients compared to 2.7 million in the previous year.
Coupled with its strong and dedicated multi-disciplinary
team comprising of nursing staff, health professionals and
accredited private specialists, KPJ is able to provide rapid
assessment, intervention and individual care for numerous
common and complex medical conditions.
A key driver of KPJ’s success has been its culture of
innovation, where the Group recorded many firsts in terms
of both medical as well as information technology. Its
dedication to continuous improvement further underpins
KPJ’s structured, sustainable efforts to generate positive
patient experiences.
Intrapreneur Ventures
Established as one of Kulim’s principal growth thrust,
Intrapreneur Ventures (IV) Division is the test-bed for the
Group’s entrepreneurial talents. Kulim is constantly on the
look-out for new and promising businesses that can be
nurtured to maturity. Thus far IV is involved in a diverse
range of businesses; including shipping & logistics,
support operations for plantations, including agricultural
machinery, oil palm nursery and mills maintenance as well
as IT-related services.
These companies are developed and nurtured with the aim
of subsequently being transformed into strategic business
divisions of the Group. Kulim’s efforts have paid off with
some success stories, notably that of E.A. Technique (M)
Berhad and its subsequent listing on the Main Market of
Bursa Malaysia on 11 December 2014.
Sustainability and Governance
One of its pursuits of value and growth is firmly
underpinned by its commitment to embrace sustainability
and strong corporate governance as the overriding
philosophy – which includes developing the Sustainable
Palm Oil (SPO) programme as a business guideline. As a
THE BRANDLAUREATE • BUSINESS WORLD REVIEW
socially and environmentally responsible corporate citizen,
Kulim embraces the principles of sustainable development
and has continued to work towards demonstrating
sustainability throughout its operations. One of its addedvalue efforts, promoting renewable or green energy within
the palm oil sector, is the development of its first biogas
plant at Sedenak Palm Oil Mill and two new biogas plants at
Pasir Panjang Palm Oil Mill and Sindora Palm Oil Mill which
are currently in progress.
With its efforts to always being mindful of its surroundings
and the socioeconomic impact of its actions, Kulim aims
to move forward by developing business methods that
are economically viable, environmentally appropriate and
socially beneficial as well as positioning Kulim as one of
the front runners in the SPO-compliant global supply chain.
In relation to governance, Kulim was ranked 49th amongst
the top 50 companies shortlisted for the Malaysia-ASEAN
Corporate Governance Award organized by the Minority
Shareholder Watchdog Group (MSWG). The award was
intended to showcase the top Malaysian public-listed
companies with good corporate governance practices using
the ASEAN Corporate Governance Scorecard Methodology.
Parallel to that, KPJ has been unwavering in its commitment
to enhance its team of more than 11,000 staff members.
In tandem with its growth strategies, the Group has
implemented a number of employee engagement and
talent development initiatives.
KPJ Healthcare Berhad (KPJ) is
a leading provider of private
healthcare services in the
country. Its success story for
the last 35 years is the very
underpinning of growth and
development of Malaysia’s
private healthcareservices.
This leading healthcare brand
is set to become the centre
of excellence in the private
healthcare industry.
There is no resting on laurels here, however, as KPJ
continues to develop and nurture new talent. In 1991, KPJ
set up its very own Puteri Nursing College (PNC), a pioneer
in nursing education and training. In 2011, this education
arm of KPJ became the first private provider to have its
own Medical School – following approval from the Ministry
of Higher Education. Its programmes today have been
expanded to include Medicine, Pharmacy, Health Sciences,
Management and Behavioural Science & Humanities at the
diploma, Bachelor, Master and PhD levels. In addition to
the academic programmes, KPJUC further strengthened
its Research and Development (R & D) capabilities, with
a focus on postgraduate and PhD students.
All these developments at the same time serve as a
gateway to improve KPJ’s attractiveness on the global
arena. An increasingly significant percentage of KPJ
patients are international health tourists as well as
foreign expatriates currently residing in Malaysia. The
Group’s Health Tourism revenue had increased to RM78
million in 2014 from the RM67.09 million in 2013.
KPJ continues to generate breakthroughs and leave an
impact in all its endeavors:
Holistic Approach to Healthcare
Working in partnership with patients and their families KPJ
takes a holistic approach to healthcare and acknowledge
the uniqueness of every patient to create a healing
environment that is second to none. The company ventured
into senior living care services, through its investment in
the KPJ Tawakkal Health Centre in Kuala Lumpur, the Sibu
Geriatric Health and Nursing Centre in Sibu, and Jeta Gardens
Retirement Resort in Australia. Jeta Gardens managed to
record an increase of 5 per cent in terms of revenue, i.e.
achieving RM29.5 million in 2014, up RM1.5 million on to
the previous financial year. Drawing on its main advantage
is the customer care and 24-hour medical supervision by
trained nurses and regular visits by medical specialists.
Patients from different race, social status and religion are
welcome to stay either for short or long period of time
according to their needs.
CSR
As a responsible corporate citizen, KPJ reaches out to
various communities through public health screening
sessions, health talks and other events. It continues to
touch the lives of the impoverished and underprivileged in
communities through its management of Klinik Wakaf AnNur (KWAN) initiative. Since the inception of the first KWAN
charity clinic in Johor in 1998, it has served more than 1.13
million patients. Today, the KWAN network encompasses
one hospital in Johor, 20 clinics throughout Malaysia, as
well as three mobile clinics in Johor and Selangor.
Fostering an Educational Culture of Excellence
In fostering an educational culture of excellence,
KPJ proactively contributes to the development and
employment of Malaysia’s healthcare professionals.
Continually pushing the boundaries of healthcare and
improving patient outcomes the healthcare brand
became the first private provider in Malaysia to have its
own medical school, by offering the Masters in Medicine
programmes. Committed to the ongoing training and
development of quality healthcare professionals, within
a values based organization, KPJ hospitals ensure they
continue to be recognized by accreditation bodies such as
the Malaysian Society for Quality in Health (MSQH) and the
Joint Commission International (JCI). The hospital also takes
a leading role in medical research and translate research
findings into patient care.
Keeping Abreast with Contemporary IT
During the year under review, KPJ became the first private
healthcare organization in ASEAN investing in a ‘Cloud’
infrastructure. The Group had spent RM17 million over
a period of three years and the system aims to enhance
management of the hospitals’ integrated database
nationwide ensuring that patient data is maintained even
more securely, efficiently and effectively.
Smart Partnerships
The Group has teamed up with like-minded partners
committed to providing world-class complex care and to
creating more choice for patients and faster access to care
services. KPJ signed a tripartite agreement with Pelaburan
Hartanah Bhd. and Nadayu Properties Bhd. to build KPJ
Damansara Specialist Hospital II in Kuala Lumpur and it
would be a model for the government to develop other
Malay reserve land plots.
Above all else,KPJ is committed to the care and improvement
of human life. This is reflected in the excellent provision of
comprehensive services it contributes to, in collaboration
with accredited private specialists, for its patients and
referring doctors. In recognition of this commitment, KPJ
strives to deliver high quality, cost-effective healthcare
in the communities it serves. Today, KPJ is well placed
to provide a globally consistent, disciplined, investment
process across its major expertise and capabilities, which
draw on the local knowledge and expertise of its team of
investment professionals in 30 countries and territories
around the country.
The Group also has a strong national presence as a
comprehensive service provider, able to cater to various
specialized needs of today’s consumers. One of these said
niches is specialist eye care, where in October 2014, the
KPJ Pusat Pakar Mata Centre for Sight (CFS) was officially
launched. Located in KPJ Tawakkal Health Centre (THC)
building in Kuala Lumpur, CFS offers specialist outpatient
services and ophthalmology daycare facilities.
Leveraging on opportunities presented in the Economic
Transformation Programme (ETP), KPJ opened its Senior Living
Care Centre in 2014, to serve Malaysia’s ageing population.
The greatest advantage the centre has, compared to other
aged care providers, is that it is supported by KPJ’s specialist
hospitals and trained medical personnel. The centre
received its first resident in August 2014.
The Group’s rapid expansion resulted in the Group having
more than 1000 medical specialists in the country and
more than 11,000 employees nationwide.
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QSR BRANDS (M) HOLDINGS SDN. BHD.
One of JCorp’s highly-established business segments is
through its multi-company F&B operator, QSR Brands (M)
Holdings Sdn. Bhd (QSR Brands).
As the country’s first and only fully-integrated food operator,
QSR Brands is a prominent franchisee of over 750 KFC
restaurants in Malaysia, Singapore, Brunei, and Cambodia;
as well as Pizza Hut in Malaysia and Singapore – with more
than 350 restaurants in Malaysia and 60 restaurants in
Singapore. Having over 30,000 dedicated staff spanning
across Malaysia, Singapore, Brunei, and Cambodia, the QSR
Brands Group is by far one of the biggest employers in its
sector. In 2014, it is reported that the total outlets operating
under the KFC and Pizza Hut brands had grown by 6.1 per
cent to a total of 1172 units from 1105 in 2013. With 605
restaurants in total – 504 in Peninsular Malaysia and 101
in East Malaysia – the Group has once again retained its
market dominance, and KFC remains as Malaysia’s largest
restaurant chain. Another 34 new restaurants are lined up
for operation in 2015.
The Foods & Restaurants Service
Business stands until today as one
of JCorp’s biggest and strongest
Food & Beverage (F&B) venture
arms. The segment formally became
part of JCorp’s overall business
strategy in 2006, and since then,
the business has expanded into
new domestic and foreign markets,
as well as developing new areas of
expertise.
At the heart of QSR Brands are KFC and Pizza Hut, the
two core quick service restaurant brands of which
staggering growth in the region has led to the creation of
numerous ancillary businesses to support their operating
requirements. QSR Brands is fully integrated from farm-tofork whereby it is extensively involved in poultry production
and processing, as well as a host of ancillary business such
as baking and sauce production.
From the beginning, QSR Brands has been managing and
operating its restaurants as well as its Integrated Poultry
Operations and Food Manufacturing arms from the ground
up, primarily to ensure its customers be given a complete
experience, in terms of its F&B offerings. By doing so,
they not only offer customers a richer experience but also
position themselves as providers of value, as observed in
the following:
QSR Brands pride themselves on delivering quality products
and exceptional service, and are dedicated to maintaining
and enhancing the caliber of all its brands. QSR Brands
and its subsidiaries guarantee full halal compliance to
customers in all of the group’s markets. Every aspect of
the food manufacturing process follows strict controls and
accepts only certificates recognized by the Department of
Islamic Development Malaysia (JAKIM) and strictly adheres
to MS1500:2009.
Multi-pronged Approach
QSR Trading Sdn. Bhd. (formerly known as KFC Marketing
Sdn. Bhd.) is a sales, marketing and trading arm for QSR
Brands and external markets, both domestically and
internationally. With a Vision to be the preferred distributor
of superior quality halal brands, the subsidiary performed
well in 2014, with sales growing by 4.5 per cent to reach
RM338.6 million.
One of its well-known brands is the Life sauce brand, a
homegrown product manufactured by another QSR Brands’
subsidiary, Region Food Industries Sdn. Bhd. (RFI). RFI
manufactures sauces both for the Group and for external
markets.
Nurturing Multiple Homegrown Food Brands
QSR Brands is also home to many successful homegrown
food brands, namely Ayamas, Life, Amy, Zippie, and Bakers’
Street. In fact, Ayamas is one of Malaysia’s biggest
integrated poultry operators, specializing in the processing
and retailing of chicken for local and export markets. The
company is ever-expanding its products and outreach to
augment demand in the regional F&B market by becoming
a third-party distributor for global brands, namely Simplot,
Divella, Kewpie, Lactima, Belle and Leggo’s. QSR Trading
also supplies halal chicken meat to KFC and Pizza Hut
restaurants across Malaysia.
Awards and Recognition
2014 also marked a year of great achievement for KFC
Malaysia as it was awarded the Franchisee of the Year 2013.
The title, which was awarded by Yum! Brands, Inc., is largely
based on the consistent performance and execution of
KFC Malaysia over the years. KFC Malaysia also received
two other awards, namely the Development Excellence for
its ‘diligence and tenacity in driving strong growth’, and
‘building a consistently great looking KFC Brand’ with its
development programme; and Marketing Excellence, for
its ‘demonstrated excellence in marketing’ in 2013 across
all three of Yum! Brands, Inc.’s marketing pillars – Value,
Innovation and Care.
Pizza Hut Malaysia also received the Development
Excellence award from Yum! Brands, Inc. for their hard work
and initiative for setting the bar higher year on year for
Pizza Hut delivery growth. They built a staggering 40 units
in 2013, on the heels of 35 in 2012. Pizza Hut continues to
drive penetration and accessibility to customers ensuring
Pizza Hut remains the brand of choice for pizza delivery.
QSR Brands has shown its appreciation for Malaysians’
support in making it a market leader in many ways and
continues to give back to the community. Through its
two major brands, the group has contributed significantly
through its CSR initiatives such as Projek Penyayang (a
feeding programme which has been carried out for over
20 years) followed by a charitable fund called Tabung
Penyayang KFC; The World Hunger Relief Campaign (which
is in its 9th year and is expanding its efforts by increasing
collection targets each year as well as building even more
effective awareness campaigns); sponsorship in sports;
Pizza Hut’s Nationwide Delivery; National Champs Challenges
as well as green initiatives and recycling programmes. KFC
Malaysia also boasts three KFC restaurants run entirely by
speech and hearing-impaired staff, offering many members
of this community independence and empowerment. These
restaurants are located in Sentul Raya, Kuala Lumpur,
Saujana in Sarawak, and Tanjung Aru in Sabah.
For more than 40 years, Johor Land Berhad (JLand) has forged an enviable and
highly respected reputation as a leading property developer in the state of Johor.
With an extensive property development expertise, a successful track record and
thriving developments across the state, the company hopes to continue to leverage
this success by pursuing new opportunities to diversify and
expand its property portfolio.
JOHOR LAND BERHAD
Johor Land Berhad (JLand) spearheads the Property Division
of Johor Corporation (JCorp) in residential and commercial
development in building thriving communities and
enriching lives in Johor since the last four decades.
Over the years, it has grown to be a dominant player of
property business in Johor.
JLand’s key achievement in developing and maintaining
strong track record of building community has been
proven by the success of development of residential
neighbourhoods in Pasir Gudang, Bandar Tiram and
currently, the on-going development of premier township
in Bandar Dato’ Onn, Johor Bahru.
JLand’s strategy of offering innovative and attractive
products continues to hold the company in good stead. In
2014, JLand continued to record remarkable performance
as compared to the previous year, with a revenue of
RM413 million, and is expected to make improvements in
2015 by taking into consideration the completed projects
as well as new projects, although the property market
condition is expected to be more challenging in the years
to come.
Today, the Group owns and manages prime residential
commercial and industrial real estate in highly sought
after Johor locations, while adding to its land bank
to increase the diversity and wealth of its property
portfolio. The company has a substantial land bank of
about 1214 hectares, strategically located in the heart
of Iskandar Malaysia and it has huge potential when it
is fully developed within the next 10-15 years. The vast
development of Iskandar Malaysia with its mega hub and
industrial development centre services, including medical
sector, finance and recreation, will transform Johor Bahru
into a world-class city; and this in turn will boost the
property market in Johor, in particular the demand for
residential properties. JLand will continue to benefit the
positive spillover by creating innovative development
concepts and delivering quality homes and distinctive
neighbourhoods to its customers in exceptional
townships.
JLand’s success is founded on the Quality and Integrity of
its people and the long-term relationships the company
builds with its customers; plus an unrivalled knowledge
of the industrial property markets in which it operates.
image :
Active environmental NGOs were celebrated during the
historical launch of KFC Nilai Square, Malaysia’s first
Eco-Friendly KFC Restaurant, on 12 June 2015.
THE BRANDLAUREATE • BUSINESS WORLD REVIEW
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Damansara Assets Sdn. Bhd. (DASB)
is dedicated to building value
through the development and
management of real assets. From
affordable landmark mixed-use
projects, lifestyle centres, high-rise
office complexes, and commercial
properties to its focus on
management of assets, investments
and financing, DASB is committed
to adding value and providing
solutions to its public and
private sector clients.
Based on the experience and expertise, DASB is also
appointed as the third-party manager by Johor Corporation,
Kulim (Malaysia) Berhad, Larkin Sentral Property Sdn. Bhd.,
Bukit Damansara Development Sdn. Bhd., Johor Land Berhad,
KPJ Healthcare Berhad and Pasir Gudang Local Authority to
manage their buildings such as Menara Ansar, Larkin Sentral,
Kompleks Pusat Bandar Pasir Gudang, Menara Johor Corporation
and Menara 238 (Kuala Lumpur), VSQ Tower 1 (Petaling Jaya),
Tanjung Leman Jetty and Tanjung Leman Beach Resort.
DAMANSARA ASSETS SDN. BHD.
DASB, a wholly owned subsidiary of JCorp, specializes in
the segments of commercial real estate development and
building management – particularly shopping centres
and office towers. Through its commercial real estate
investment, DASB owns and monitors a portfolio of property
development, namely Galleria @ Kotaraya, KOMTAR JBCC,
Komtar Tower, Pasaraya Komuniti @Mart Kempas, Taman
Dahlia Business Centre and Bandar Dato’ Onn office buildings.
Today TTSB is embarking on its latest development,
Sedenak Industrial Park. The area will become Data Centre
Hub for the ASEAN region. Data centre are not only strategic
to the development of most dynamic and promising sectors
such as entertainment, media, biotechnologies & health or
e-commerce, but also clear technologies in relation with
the specific infrastructures being put in places. Strategically
located within Iskandar Malaysia, the most promising
southern development corridor of Malaysia, Sedenak
Industrial Park comprises a total area of 283 hectares and
is now open for lease for a 60 years period with attractive
and competitive pricing. Meanwhile, TTSB’s future project
which is Pengerang Industrial Petroleum Complex (PIPC), with
a total of 278 hectares, has been identified to be developed
as industrial land for supporting industries of oil & gas.
Having invested of approximately USD200 million in
developing the 31 industrial areas, today TTSB is allocating
hundreds of millions more for the implementation of similar
projects in the upcoming years. Thus, with the fruit of
foresight, TTSB is expected to multiply its holdings in years
to come, and this will subsequently retain JCorp’s position as
a dominant galvanizer of Johor’s economic landscape.
THE BRANDLAUREATE • BUSINESS WORLD REVIEW
These companies are involved in activities such as REIT
management, leasing of office suites, the property owners
and management of shopping centres. Befitting its stature
in the market, DASB is also a member of the prestigious
International Council of Shopping Centres (ICSC) and Malaysia
Shopping Malls Association and awarded the ISO 9001:2008
certification by SIRIM.
TANJUNG LANGSAT PORT SDN. BHD.
TPM TECHNOPARK SDN. BHD.
As a Project Manager and Marketing Agent for Industrial
Estates, TTSB has, over time, developed and managed 31
industrial areas covering an area of almost 5000 hectares
across the state of Johor. With Industrial Developments
that date back to the early 1970’s, some of the its earliest
developments include Pasir Gudang (Johor Bahru District),
Tongkang Pechah (Batu Pahat District) and Tg. Agas (Muar
District) industrial areas. The company is responsible for
the further extension of the Pasir Gudang Industrial Area,
undertaken with the development of Tanjung Langsat
Industrial Complex – developed to cater for light, medium
and heavy industries namely Oil & Gas, Marine Related, Steel
Products & Fabrication, Palm Oil Related, Petrochemicals
and Chemicals.
DASB is also the holding company of other companies,
including Damansara REIT Managers Sdn. Bhd., Synergy
Mall Management Sdn. Bhd., Pro Biz Solutions Sdn. Bhd.,
Damansara Heights Development Sdn. Bhd., Harta Consult
Sdn. Bhd. and AB Theme Park Sdn. Bhd.
Tanjung Langsat Industrial Complex
development was complemented by
the construction of an industrial port,
namely TanjungLangsat Port – one of the
three promoted areas that promises to
transform Southern Johor into a leading
integrated refinery, petrochemical & oil
storage hub in Asia Pacific.
TPM Technopark Sdn. Bhd., or known
as TTSB for short, is one of JCorp’s
professional servicing arms on
Total Project Management which
provides project management
services for commercial and
industrial developments and also
acts as a marketing agent and project
developer for industrial estates owned
by Johor Corporation.
TTSB also provides professional
services on Total Project Management
for development of commercials,
religious schools, mosques, staff
quarters, complexes, hotels,
convention centers, hospitals, ports,
stadiums, ready-built factories,
biomass steam plant as well as
specializing in the development of
Industrial Estates.
The 1000-acre port, operated by Tanjung Langsat Port Sdn.
Bhd. (TLP), a wholly owned subsidiary of JCorp, is a specialized and dedicated port with the capacity to meet the
demand for petroleum, petrochemical, edible oiland bulk
dry cargo handling facilities. Endowed with a 4.5-kilometre shoreline which is ideal for O&G and marine-related
industries. The port’s development is divided into four
zones – storage terminals, oilfield services & equipment
(OFSE), regional marine supply base and offshore fabrication &maritime hub. The liquid cargo jetty, with water
depth of 15.0 metres, caters to vessels ranging from 5,000
to 120,000 dwt. The dry cargo jetty can cater vessels up
to 40,000 dwt.
image :
DRMSB recently launched Al- Salām REIT, its 2nd Islamic
REIT on 28 April 2015.
Damansara REIT Managers
Sdn. Berhad (DRMSB) is a
Malaysian-based company
focused on the management
of public listed real estate
investment trusts (REIT). As part
of DRMSB’s role to stimulate
growth within JCorp, DRMSB
was incorporated in 2005 and
has since been earmarked as
the important component in the
real estate division of JCorp.
DAMANSARA REIT MANAGERS SDN BHD
DRMSB is the only REIT manager in Malaysia managing two (2)
Islamic REITs, namely Al-`Aqar Healthcare REIT and Al-Salām REIT.
Al-‘Aqar Healthcare REIT, which was listed on the Main Board
of Bursa Malaysia on 10 August 2006, focuses on healthcarerelated assets. In 2014, Al-`Aqar Healthcare REIT had total assets
under management amounting to RM1.5 billion.
Al-Salām REIT was established early this year and focuses on
Syariah-compliant diversified assets, including, but not limited
to, commercial retail, office, and industrial assets. Al-Salām REIT
is expected to be listed on the Main Market of Bursa Malaysia by
the third quarter of this year.
JCORP HOTELS & RESORTS SDN BHD
JHR spearheads JCorp’s hospitality business oversees.
Several properties under its purview include The Puteri
Pacific Johor Bahru, Persada Johor International Convention
Centre, Hotel Selesa Johor Bahru, Hotel Selesa Pasir Gudang
and Sibu Island Resort which are all located in Johor, besides
Selesa Tioman Condotel in Pahang.
The hospitality business generates an annual revenue of
more than RM70 million. With its gross operating profit
remaining positive, concerted effort has been put in to take
advantage of the wide spectrum of products available in
the tourism industry especially in sports and recreation,
education, healthcare, commercial development and other
sectors. The company guarantees consistency throughout
its collection of hotels and modern city centre properties
by adhering strictly to company-wide standards, ensuring
the same high-quality amenities are available to all guests
wherever they visit.
However, the chain of Selesa hotels in Johor Bahru and
Pasir Gudang have been earmarked for disposal. The sector
will redirect its focus on its flagship properties, The Puteri
Pacific Johor Bahru, Persada Johor International Convention
Centre and Sibu Island Resort, to ensure sustainability with
reduction in capital expenditure commitment.
Moving forward, with the recent refurbishment exercise in
The Puteri Pacific Johor Bahru, JHR is confident to capture
the growth in business and leisure arrivals into Johor
Bahru. As JHR expands its brand across the state, it remains
committed to its core values by providing experiences that
are authentically local, in hotels and modern complexes of
unrivalled presence, with service that is truly engaging.
JCorp Hotels And Resorts Sdn. Bhd.
(JHR) is one of the leading brands
in Johor’s hospitality industry, with a
distinctive collection and a nationwide
reputation for excellence. Today, JHR is
a growth organization, ready as ever
to build upon its unique strengths and
established reputation to become one
of the most-storied hotel brands across
the state.
ENTREPRENEUR BUSINESS
As a Johor State economic development arm, JCorp is viewed
as one of the most powerful and effective organizations
dedicated to protecting businesses, and promoting
entrepreneurship. JCorp’s contribution to entrepreneur
development programmes is not limited to the provision
of support for individual entrepreneurs who have identified
new business opportunities under JCorp’s Intrapreneur
Scheme, but also through lending of assistance by offering
skills and management trainings apart from access to
vibrant business infrastructure, including identifying suitable
premises to foster the holistic entrepreneur development
programmes.
image :
Syarikat Pengangkutan Maju Berhad (SPMB) serves
as one of various outstanding testimonies of JCorp’s
successful entrepreneur development scheme.
As at June 2015, a total of 36 companies have been
registered under Johor Corporation Intrepreneur Scheme
with an aggregate revenue of RM406.3 million achieved
by the entrepreneur companies last year. The number of
entrepreneur companies that recorded a pre-tax profit
exceeding the RM1 million-mark in 2014 stood at 8.
Since inception, JCorp has been bringing
the information needed to run a successful
business to budding entrepreneurs,
providing an array of services to local
businesses, as well as promoting and
developing entrepreneurship. Through
its efforts, the company has managed
to recombine the new and the old to
forge innovative ventures, create an
entrepreneurial culture, and dramatically
benefit the development of the state of
Johor.
Meanwhile, continuous close monitoring of the 36
entrepreneur companies have been kept by JCorp through
the nominated supervisory of parent companies which offer
advice & guidance and seek business synergy with the
entrepreneurs’ ventures.
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