02 Mar 2023, The Edge Markets
KUALA LUMPUR (March 2): The new Mandatory Standard on Access Pricing (MSAP), which came into force on Wednesday (March 1), may weigh on Telekom Malaysia Bhd’s earnings in the early stage of implementation, according to Minister of Communications and Digital Fahmi Fadzil.
However, the minister believes that Telekom Malaysia Bhd (TM) is able to “bounce back” after the initial setback by MSAP, based on the group’s historical net profit between 2017 to 2022.
Fahmi noted that although TM incurred a net loss of RM260.5 million in 2018 when MSAP was implemented, the group posted a net profit of RM557.4 million a year later in 2019, and had continued to trend upwards to RM1.14 billion in 2022.
“This shows that there is ‘Malaysia Boleh’ spirit in TM, that despite being given a challenge, they were able to bounce back. I believe TM may record a little loss in the early stage [of MSAP implementation], but it can benefit the people,” he told Dewan Rakyat on Thursday (March 2).
“In reality, they succeeded; to me, [TM] is a role model for us as a country. Although there will be impact, I was informed as of today, (that) among the analysts, TM stocks is still a ‘buy’,” he added.
Fahmi was responding to Khoo Poay Tiong [DAP-Kota Melaka], who asked for an explanation regarding the new Mandatory Standard on Access Pricing (MSAP) and the impact on the telecommunications sector and users in Malaysia in terms of the quality of service.
Citing wholesale high-speed broadband services as example, Fahmi said in general, prices set in the new MSAP are lower compared to the previous one.
“High Speed Broadband or HSBB for a speed of 100 Mbps in the new MSAP for the year 2023 is RM254.64 per month compared to the previous price of RM515 per month,” he said.
“As such, it can reduce the cost to access seekers involved in providing fixed broadband services to users. Indirectly, services provided to consumers at the retail level can be offered at a lower and competitive price, or at a faster speed,” Fahmi added.