CEO: YTL Comms ‘always in talks’
No plan to consolidate, but will double size of business
KUALA LUMPUR: Wireless services provider YTL Communications Sdn Bhd, which offers the YES 4G service, says it is “always in talks” with its fellow industry players but has not moved beyond that.
“Yes, we are always in talks with some other players but that’s it. We have no plan to consolidate our business. In fact, we are going to double the size of our business in the next 12 months,” chief executive officer Wing K Lee told Starbiz yesterday after an event announcing a collaboration between YES and Proton Holdings Bhd to offer Malaysia’s first 4G Internet cars through Proton’s high-end cars and the new sedan P321A to be launched next month.
Starbiz reported yesterday that consolidation talks had begun in the telecommunications space, where as many as nine parties have licences to offer mobile services.
Industry sources said that one of the more active players pursuing a merger and acquisition exercise was the ytl group, which has approached Asiaspace Sdn Bhd and Green Packet Bhd.
YTL Communications launched its YES 4G wireless network in November 2010 and as at November last year, the company was said to have a subscriber base of more than 300,000.
It was reported that the company would break even when it had one million subscribers.
Meanwhile, Proton group managing director Datuk Seri Syed Zainal Abidin Syed Mohamed said the company and those involved in motor trade would be meeting Bank Negara tomorrow to discuss the new car loan guidelines.
“There are some dissatisfaction arising from Bank Negara’s new guidelines for loan borrowers. Dealers are lamenting a drop in sales as a result of these guidelines,” he added.
On Tuesday, dealers of Proton cars said they wanted the guidelines to be reviewed after sales had been dented, with only 30% of applicants able to secure financing for new Proton cars in January.
In a statement, Proton Edar Dealers Association Malaysia president Armin Baniaz Pahamin said the income of more than 4,500 sales advisers employed by the dealers had been badly impacted because they were unable to earn commissions after customers’ loan applications were rejected due to the more stringent requirements.
The Malaysia Motor Association reported a 25% drop in sales of new motor vehicles in January, due to the tightening of hire-purchase loan approval process, a short working month and floods in Thailand.