A Malaysian hostage kidnapped earlier this year by Al Qaeda-affiliated Abu Sayyaf militants was beheaded by the group in Philippines on Tuesday, the Malaysian government said.
Malaysian Prime Minister Najib Razak said he was shocked and sickened at the execution and demanded justice.
The island of Jolo, where the beheading took place, is a stronghold of the Abu Sayyaf militant group who also threatened the families of the hostages and while asking for ransom for the captives.
Abu Sayyaf kidnapped the businessman together with a woman in May from a Chinese seafood restaurant.
The group freed the woman after a ransom was paid for her release, but the businessman has been executed as the ransom was not paid, an earlier intelligence report indicated.
In September, the Al Qaeda-affiliated group kidnapped three foreigners, including two Canadian tourists, a Norwegian resort manager and a Filipino woman, and demanded a ransom of 1 billion pesos ($21.21 million) for each of the captives in exchange for their lives.
The execution might be a reminder of the security challenges that small militant groups still pose to the Philippines, while the world leaders including the US President Barack Obama are attending the Asia-Pacific Economic Cooperation (APEC) summit in the capital Manila.