Could selling assets help Telekom Malaysia improve its network services?

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Selling Assets Could Enable Investment in Network Improvements for Telekom Malaysia

Telekom Malaysia's decision to sell its TM Annexe 1 and Annex 2 properties is a strategic move that could provide the company with additional capital. This generated cash can then be reinvested into various business areas, potentially including the enhancement of its network infrastructure. This practice of divesting assets to fund core business development is a recognized corporate strategy.
Asset Divestment for Strategic Reinvestment

Telekom Malaysia is offering for tender two properties, TM Annexe 1 and Annex 2, situated adjacent to Menara TM. These buildings, possessing a combined gross floor area of 679,015 square feet, represent significant assets whose sale could unlock considerable value. The proceeds from such a transaction are typically earmarked for strategic reinvestment, offering a pathway to enhance operational capabilities or explore new business ventures.
Corporate Practice of Asset Monetisation

The sale of corporate real estate is a common practice among businesses seeking to optimise their financial resources. By monetising investments in property, companies can generate liquidity that may then be directed towards improving existing services or developing new ones. This approach allows for the unlocking of embedded value within non-core assets to support growth and innovation in primary business segments.
Precedent in Media Prima's Asset Sale

A comparable situation occurred with Media Prima, which divested its Balai Berita building and a printing plant in late 2018. This sale yielded RM127.7 million and projected annual savings of RM10 million. Media Prima indicated that the funds generated and cost efficiencies achieved would enable them to preserve cash reserves specifically for business transformation initiatives.

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Could selling assets help Telekom Malaysia improve its network services?

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