Telekom Malaysia Eyes Investments in Laos, Myanmar and Vietnam

Telekom Malaysia International - the mobile division of the dominant telco is looking to expand its operations into Laos, Myanmar and Vietnam, and will invest US$100 million in Cambodia over the next two years, the company CEO, Yusof Annuar Yaacob said on Saturday.

"We're investing about $100 million in Cambodia over the next 18 to 24 months, and we're looking at a transaction in Laos at the same time -- we're talking to the government about taking over one of their mobile operations," Yusof told Reuters in an interview.

He said that the company has been looking for a partner in Vietnam, noting that Vietnam's MobiFone is itself seeking an outside partner.

News that the Vietnamese government has today chosen to license the country's seventh mobile network operator - without any public tender - may have heightened the regulatory risk in the country. The regulatory regime in Myanmar is practically non-existant, with the military junta controlling services apparently at whim.

Last September, Telekom Malaysia announced plans to demerge its mobile operations into a separate company which would seek both a local stock market listing and a strategic investor in the company. Vodafone, China Mobile and AT&T have been widely tipped as the possible investor.

There have also been media reports over the weekend that Telekom Malaysia's overall CEO, Abdul Wahid Omar may step down following the split of the company into its landline and mobile divisions. He is reported to have been offered the top job at Maybank, Malaysia's largest bank to replace the current CEO who is due to retire in June - around the same time that TM's split into two companies is due to be completed.

In a note to clients, CIMB Investment Bank analyst Kelvin Goh said his sources have confirmed that Wahid is likely to leave Telekom Malaysia and Jamaludin Ibrahim, the former chief of Malaysia's largest cellphone operator Maxis Communications is tipped to assume Wahid's position.

"We look favourably upon Jamaludin's entry into Telekom Malaysia given his strong track record at Maxis. His experience will be valuable to Telekom Malaysia as it undertakes its demerger," said Goh.

Posted to the site on 28th January 2008