Asian-based telecommunication company, Telekom Malaysia Berhad (TM), is set to focus its investment strategy on geographic regions closer to home, according to CEO, Yusof Annuar Yaacob.
This strategy comes after the telecommunications company sold its entire 60% stake in Telekom Networks Malawi (TNM) last month, for $16 million, to mobile telecom operator Malawi Telecommunications Limited (MTL).
"TM intends to continue with its international investment strategy of focusing on geographies in Asia, which we see as a strategic way of going forward," says Yaacob.
TM's objective has been to divest its interest in TNM responsibly so the people of Malawi can continue to be provided the service independently, he says. "TM is of the opinion that MTL is eminently well-placed to continue this task."
TM's investment during the past 12 years has worked well with the government and the people of Malawi in building a strong network in Malawi, he adds. TM has relinquished its 60% stake in TNM, with a subscriber base of some 300 000 active cellular subscribers.
African exit
The exit strategy plan from Africa began in 2004, explains Yaacob. It was illustrated by the sale of TM's investment in Telkom SA in the second half of 2004.
"With the sale of our stake in TNM, TM's sole investment in Africa now remains with its 60% stake in Guinean telecommunication company Societe des Telecommunications de Guinee," says Yaacob.
The Malaysian telco has formally indicated its intention to exit this investment as well. TM's decision to exit Guinea is part of a broader plan to dispose all of its African investments.
Yaacob previously said the departure of TM from Africa does not reflect Africa as an "investment disaster".
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