The Malaysian Insight

TELEKOM Malaysia Bhd (TM) could soon get a new person at the top, as the search for a chief executive at one of Malaysia’s key government-linked companies (GLC) nears the end.

The Malaysian Insight understands that the TM board of directors will meet at the end of this month to nominate a candidate from a current shortlist said to contain at least five names after the search started in August.

The board will then submit their pick to the government, which holds a golden share in TM, for final approval.

Changes at the top in TM have been gathering pace in recent weeks with the telco giant appointing for new board members and a new chief human capital officer.

Under pressure from the government to cut prices and improve its broadband services, TM has been operating without a full-time CEO after Shazalli Ramly resigned in the aftermath of the May 9 general elections which saw Pakatan Harapan (PH) trouncing Barisan Nasional (BN) in the first government change since Merdeka in 1957 and Malaysia’s formation in 1963.

Shazalli’s deputy, Bazlan Osman, was made acting CEO as an interim measure. But those familiar with the ongoing chief executive search said Bazlan is not in the running for the top post. He is said to have privately expressed that he was not looking to be made the TM CEO.

TM is also among public-listed GLCs that could see a paring down in public sector ownership through their respective government-linked investment companies (GLICs) shareholders. 

Such stake sales are part of Putrajaya’s broader plan to reduce the crowding-out effect on the private sector, improve market liquidity, and help pare down its debt obligations.

There is market speculation that several domestic and foreign private sector players in the telecommunications industry are interested in buying stakes in TM, including the likes of Altel Communications of the AlBukhary group of companies and South Korea’s SK Telekom.

While public sentiments towards significant foreign ownership in key strategic companies present a challenge, the potential changes in TM’s shareholdings could result in a company that is more consumer and commercially-oriented, with much leaner public sector ownership pre-empting overbearing government control and direct intervention.

TM is currently facing challenging times, reporting lower earnings for the second quarter ending June 30, with net profit down 52% to RM101.93 million from RM210.48 million a year earlier. 

The company’s share price fell 15.5% yesterday, closing at RM2.55. The share price opened at RM2.50 this morning. – October 11, 2018.