Malaysia's top mobile operator Maxis Communications may expand into regional markets like India and neighbouring Indonesia within the next two years in search of new business opportunities, Maxis chairman Megat Zaharuddin said Monday.
"We will continue to look at growth opportunities. Our focus is on countries in the region and in places where our management and expertise can be used," he told reporters after the company's annual general meeting in Kuala Lumpur.
Asked if the company will be diversifying overseas in the next two years given the projected slowdown in the industry's growth in Malaysia, he said 'very likely' as this "is the best time to get into the regional market cheap."
Megat said that Maxis would consider a tie-up with regional partners, adding that the company "would want management control if possible."
Maxis would not invest in neighbouring Singapore because its telecom penetration rate was high, he said.
Maxis, controlled by tycoon Ananda Krishnan, is Malaysia's premier telecommunications company providing voice and data services.
Jamaludin Ibrahim, chief executive officer, said Maxis expects its subscriber base to grow at more than 20 percent in 2004.
"The industry (subscriber base) is growing at the high teens. We aim to grow at the low 20s," he said.
Jamaludin said the current double-digit growth in the industry is expected to be maintained in the next one to two years but may slow to single digits thereafter as the penetration rate increases to 60 per cent.
The penetration rate for mobile phone operators in Malaysia currently stands at 45 per cent, he added.
As of end-March 2004, Maxis had a total of 4.88 million customers and is estimated to have captured more than 50 per cent of the industry's net subscriber additions.
Maxis reported first quarter net profit growth of 12.8 per cent year-on-year to 326 million ringgit ($86 million) on sales of 1.35 billion ringgit.
-- AFP
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