Financial Times - Telekom Malaysia’s investments in Asia grow over past 5 years

In Sri Lanka, TM is represented via its 87.7 percent stake in Dialog Telekom Limited, the largest communications provider in the country and provider of innovative corporate and consumer solutions under the popular brand Dialog. Listed on the Colombo Stock Exchange, Dialog has a subscriber base of 2.5 million and has been a TM company since 1995.

Jakarta - Telekom Malaysia Berhad (TM), an emerging leader in Asian communications with operations in nine Asian countries including Sri Lanka, has recorded an average compounded annual growth rate (CAGR) of some 38 percent in its Asian investments in revenue terms over the past five years (2001-2005). This growth has been led by its Bangladesh operations (at CAGR of 60.4 percent), followed closely by its Sri Lankan operations (at 41.2 percent), the company said.

In terms of cellular subscribers, TM’s international investments have seen exponential growth - with just over 500,000 cellular subscribers as late as 2001, TM now has more than 15 million subscribers in nine countries – Indonesia, Singapore, Thailand, Cambodia, Sri Lanka, Pakistan, Bangladesh, India and Iran. This brings its total regional subscriber base, including its domestic operations, to some 24 million.

TM, headquartered in Kuala Lumpur, Malaysia, attributes this significant growth to the pent-up demand for communications services from emerging countries throughout the region, which has started liberalizing the telecommunications sector, recording rapid gross domestic product (GDP) growth and enjoying higher purchasing power amongst its populations. They also say this growth is due to aggressive marketing and innovative products and services provided by its subsidiaries particularly in key markets such as Indonesia, Bangladesh, Sri Lanka and Cambodia, it said.

TM has a string of other subsidiaries in Asia where it has substantial equity control over several key mobile operators such as TM International Bangladesh (70 percent) and Cambodia’s Hello (100 percent). TM has also successfully clinched a 49 percent equity stake in Indian network operator Spice Communications this year.

Yusof Annuar Yaacob, Chief Executive Officer of TM’s international investments holding arm TM International (TMI) says the company is pleased with the progress of its international operations. TM via its local subsidiaries holds market leadership positions in key markets it is in – over the last 5 years, its Sri Lankan subsidiary Dialog Telekom has moved to the number 1 spot, whilst its Bangladesh subsidiary TMIB has captured the number 2 position.

Both its Indonesian as well as Cambodian operations are in number 3 position.