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Pursuant to Paragraph 9.19 (5) of the Bursa Malaysia Securities Berhad's Listing Requirements, we are pleased to enclose herewith a press release made by Telekom Malaysia Berhad on even date for the Exchange's information.
Telekom Malaysia Berhad (TM) today announced A Performance Improvement Program (PIP) to strengthen its domestic business and help secure its position as the domestic champion and regional communications company of choice.
This announcement was made following the Group’s half-year financial results for the period ended 30 June 2006 where it was reported that TM’s overseas operations have performed creditably while its domestic operations are facing a number of challenges, particularly in the fixed-line and mobile segments.
The PIP is structured around 3 top priorities, to boost fixed line performance, mobile performance and executional capacity. It sets out 6 core areas to help the organization move towards greater profitability and growth.
Kicking off the PIP, TM today announced its second phase of corporate re-organization. The re-organization involves the following exercise:
- Firstly, the creation of a Strategic Business Unit (SBU) called Malaysia Business to consolidate all domestic fixed services. This move will help to realize greater value in the fixed business by creating a single leadership team and a consolidated domestic business under one CEO. The CEO will take responsibility for Malaysia Business incorporating two Strategic Business Units (SBUs) i.e. TM Wholesale and TM Retail, and one OpCo i.e. TM Net. This is intended to align businesses with a common agenda and maximize synergies;
- Secondly, the creation of TM Ventures, a SBU, led by a CEO, to separately manage a large number of non-core businesses with the objective of eventually exiting unprofitable businesses while reintegrating core business into Retail and Wholesale as appropriate
- Thirdly, the creation of a Group Program Management Office or PMO led by a Vice-President, reporting directly to the Group CEO to drive and closely monitor transformation initiatives; and
- Lastly, the establishment of a high-level regulatory unit, including Group Legal & Compliance, to better-manage critical value-creation and support transformation initiatives.
Malaysia Business The CEO named to manage the consolidated Malaysia Business overseeing TM Wholesale, TM Retail and TM Net operations is Zamzamzairani Mohd Isa, 46, who is currently the Senior Vice President, Group Strategy and Technology of TM. He has over 20 years of experience in the telecommunication industry. Zam began his career in the then Jabatan Telekom Malaysia as an Assistant Manager, Satellite Planning and Development in October 1984. His last position in TM was as the General Manager, Global Business prior to his move to Binariang Bhd as General Manager, International Business and Corporate Strategy. From then on, he served a number of multinational companies such as GlobalOne Communications and Lucent Malaysia where he led the company as CEO. TM Ventures Meanwhile, Khairussaleh Ramli, 39, will assume the role of CEO of TM Ventures which will group and separately manage all non-core businesses and activities of the Group. Khairussaleh is currently the Chief Financial Officer of Bursa Malaysia having spent the last eight years with them. He has more than 16 years’ experience primarily in financial services. He graduated from Washington University, St Louis, Missouri in 1989 with a degree in Business Administration and joined Public Bank’s corporate banking division as a Senior Operating Officer. He had also previously served as an analyst with PB Securities and as Executive Director of PB Futures. PMO Heading up the PMO as Vice-President, reporting directly to the Group CEO, is Mohd Noor Omar, 52, who hails from TM International where he last served as General Manager of Strategy & Business Analysis. Mohd Noor contributed significantly to the development of TMI since 2004, particularly during the acquisitions in Pakistan, Indonesia, Singapore, India, Cambodia and Thailand. He started his working career with Petronas where he spent a total of 18 years. A holder of an MBA from the University of Wales, UK, he is also a chartered accountant and member of the Malaysian Institute of Accountants. Meanwhile, the newly-formed Group Regulatory, Legal & Compliance Unit which will report directly to the Group CEO, is intended to enable management to develop an in-house capacity to better service the needs of the Group. An executive search is currently being undertaken to recruit the best talent. The last re-organization and re-alignment of divisions and functions at TM’s Corporate Centre was conducted in April last year. The current changes are part and parcel of the continuing transformation initiatives implemented to drive and reinforce excellence at TM. According to Group CEO, Dato’ Abdul Wahid Omar, “Our main purpose in making these changes are to strengthen the TM organization to achieve our aspirations of becoming a regional communications company of choice. We have to align the organization to our strategic priorities which are at the moment, to face the challenges in our domestic businesses while building up operational execution capacity.” “We have recognized that there are far too many non-core businesses which also need to be rationalized. Additionally, the rationale behind our move is to reduce the number of reporting lines and ensure sufficient leadership focus on key priorities. The CEOs reporting to me under this structure will be limited to the CEO, Malaysia Business, the CEO, TM International, the CEO, Celcom and the CEO, TM Ventures. This is consistent with our commitment to facilitate faster decision-making and greater empowerment, and to allow me to have oversight of our operations both at home and abroad.” “I believe these structural changes are necessary and driven by the need to respond confidently to the current challenges. We will however remain sensitive to ensure that any changes made will cause minimal disruption to our operations. We are excited by these developments and look forward to strengthening our domestic operations,” he added. These changes are to take effect from 4 August 2006 except for the appointment of Khairussaleh Ramli, who will be joining the Group on 4 September 2006. TM also announced the resignation of Dato’ Zubir A.Rasid as Chief Operating Officer of Celcom (Malayisa) Berhad with effect from 1 August 2006. About TM TM, a leading regional information and communications group, offers a comprehensive range of communication services and solutions in fixed-line, mobile, data and broadband. As one of the largest listed companies on Bursa Malaysia, with operating revenue of more than RM13 billion, TM is driven to deliver value to its stakeholders in a highly competitive environment. The Group places emphasis on continuing customer service quality enhancements and innovations. Currently, with investments and operations in 13 countries around Asia and globally, TM is focused on achieving sustainable growth in both the local and international markets. For further information on TM, visit www.tm.com.my For inquiries, please call: Mariam Bevi Batcha Yogeswari Thangavelu Group Corporate Communications Group Corporate Communications Telekom Malaysia Berhad Telekom Malaysia Berhad Tel: (03) 2240 2666 Tel: (03) 2240 2611 HP: (019) 333 0611 HP: (013) 336 3205 E-mail: mbb@tm.com.my E-mail: tyoges@tm.com.my Website: www.tm.com.my Website: www.tm.com.my