Privatization Of Jabatan Telekom Malaysia

KLSE as the largest stock market in Southeast Asia accordance to Malaysian Business, 16 August 1992. Later, KLSE denoted as fourth largest is Asia (Investors Digest, November 1992). Further, 15 privatizations on the KLSE which indicated 22 percent of the KLSE total market capitalization which involved RM29.89 billion in 25th February 1994 accordance to New Straits Times (9th March 1994).

According to a case study conducted, Scaling-Up Poverty Reduction: A Global Learning Process and Conference Shanghai in 25th-27th May 2004, Bumiputera employment had risen to 3.83 million of employments or 57.8 percent in 1990 and had begun to acquire the structure of employment in NEP in various economic sectors. The study further stated that, Malay employment

Specifically, the privatization of Jabatan Telekom Malaysia (JTM) was planned to enable telecommunications services to be operated more efficiently and profitably. A study was conducted by the government to examine the feasibility and implications of the privatization. The study recommended that the operational functions of the department be transferred to a corporation initially controlled by the government. On 1st of January 1987, Jabatan Telekom Malaysia was formally corporatized and its operational functions taken over by Syarikat Telekom Malaysia

The company’s performance met the targets set out in the prospectus to match the top rung corporations in the Malaysia corporate scene. The pre-tax profits not only recorded strong growth as it had in the previous 3 years, but has breached the $500 million mark for the first time. This was the result of a combination factors such as strong economy, a communications conscious society, sound management of operations and financial affairs. The reorganization exercise which made customer and market orientation the hallmark of the company is continued into the year. The public offer of 470.5 million Telekom Malaysia shares at $5 per share and the listing of paid up ordinary shares of 1970.5 million on the KLSE marked the culmination of the company’s privatization exercise. The 147.9 million shares offered to the general public was well received with 200,962 applications for a total of 300,672 million shares. The company was able to raise close to $2.35 billion from the domestic market though the floatation exercise. The group made a pre-tax profit of $563.7 million before extraordinary items for the financial year 1990 and it is a 54.2 percent increase over the $365.5 million in the previous