Strategy and Development Essay
Aged 60, Dato’ Ir. Muhammad Radzi was appointed as the Chairman and director of Telekom Malaysia on 12 July 1999. He graduated with a Diploma in Electrical Engineering in 1962 from Faraday House Engineering College, London and a Masters in Science (Technological Economics) from the University of Stirling, Scotland in 1975. He is a member of the Board of Engineers, Malaysia, The Council of Engineering Institutions, United Kingdom, the Institution of Engineers, Malaysia, the Institution of Electrical Engineers, UK, and the Institute of Management, UK. He served in various engineering and management capacities in the former Telecommunications Department over a twenty-one year period.
In July 1996, he was retained as a Consultant/Advisor on various flagship application projects for the Multimedia Development Corporation, an agency established by the Malaysian Government to oversee the development and implementation of multimedia projects within the Multimedia Super Corridor (MSC). (II) Dato’ Dr. Md Khir bin Abdul Rahman Dato’ Dr. Md Khir was appointed as Chief Executive TM and a board of member on 1 May 2001. Prior to this, he was Deputy Chief Executive/General Manager of Malaysia Electronics Payment System (MEPS).
He started his career at the Malaysian Agricultural Research and Development Institute (MARDI) in 1972 before joining Bank Negara
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(III) Dato’ Dr. Abdul Rahim bin Haji Daud Dato’ Dr. Abdul Rahim has held the position as Executive Director since July 1998. He holds a Bachelor of Engineering in Electronics, M. Sc in Telecommunications Engineering, a PhD in Engineering from the UK and a Masters in Business Administration from the United States. He is a Fellow of the Institute of Engineers, Malaysia. He joined Jabatan Telekom Malaysia (JTM) as a Telecommunications Engineer in 1973.
In 1988, he was appointed General Manager, Information Systems and became the Senior General Manager, National Network Operations in 1993. In July 1995, he was made Senior Vice President, Network Services before his appointment to head TM TelCo as its Chief Operating Officer in 1996. Upon his appointment as Executive Director in July 1998, he remained as the Chief Operating Officer TelCo until 1 February 2001 when he assumed the position of Executive Director, Corporate Strategy and Development.
Quality of The Team From the information of the backgrounds as well as the vast experience of the Management of TM, we can say that TM does possess a management team, which has the ability in terms of education and knowledge, as we can see that the directors do hold the necessary qualification in respect the positions they held on the board. Besides, the directors do also have a vast experience in order to carry out duties as we can see that each individual director has served in variety of positions both in public or private sectors before their appointments to their respective positions on the Board Of Directors.
The gearing ratio for TM saw a slight decline in 2000 from 1999, i.e. 39.76% to 38.59%. Although there is an increase in the level of borrowings, however, this particular increase has been offset by the issuance of ordinary shares under the Employees Shares Option Scheme (ESOS). Therefore, this has led to the slight decline of the gearing ratio. In other words, this shows that TM is able to rely more on the shareholders funds to finance its operating activities instead of relying more on external borrowings to finance the activities.
Interest Cover (IC) The IC saw a significant improvement from 2.64 times in 1999 to 3.94 times in 2000. The possible reasons could due to the improvement in the group’s operating income as well as in the other operating income, i.e. the profit on disposal of an associate company. Therefore, this led to a better coverage for its finance cost obligations. The year 2000 can be considered to be a positive year for TM considering its achievements in its demands for its telecommunications services as well as consumer satisfaction. However, the Group also experienced some negative results in terms of contributions from overseas. We’ll look at these events in details.