It’s now confirmed that the largest phone company in Saudi Arabia Saudi Telecom Co. bought a 25 percent stake in Maxis Communications Bhd. for US$3.05 billion (RM11 billion), which is one of the most significant Middle Eastern investments in the region.
The Saudi operator would consider increasing its stake in Maxis to a maximum 30 percent allowed in Malaysia. Under the agreement, Saudi Telecom will also acquire 51 percent stake in PT Natrindo Telepon Selular (NTS), Maxis’s subsidiary in Indonesia.
The purpose of the buyout is significant, which is to tap into lucrative markets like Indonesia and India as the world’s largest fastest-growing mobile market, adding close to five million new mobile user a month, with mobile penetration stood at a low 14.7 percent, hence significant growth potential for the coming years.
As for Indonesia, the country has a mobile penetration rate of 19.1 percent as of statistic provided in January 2006. Apparently, it’s the growth potential in oversea markets which Saudi Telecom is eyeing.
However, Prime Minister Abdullah Ahmad Badawi described the acquisition as a sign of the Saudi’s government’s confidence in Malaysia’s economy.
"It’s a reflection of the confidence of their government in our economy, in the direction that we are taking in the world." [...]
"It’s something that we can be very happy about, it’s not easy to invest a huge sum of money. That’s a lot of money."
Our PM who is also the Finance Minister happily cash in by boosting the unfounded confidence level shown by Saudi government.
Otherwise, he was telling us the significance like huge sum of money is involved and it’s not easy to invest a huge sum of money.
Thank you Prime Minister a.k.a Finance Minister, we know about that too and unfortunately, it’s unconvincing and we expect more of quality statements from you, especially when you’re sitting on a few portfolios in this context.
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LMAO…abdullah got a bachelor of arts in islamic, this guy know nothing about economy…so what do u expect?
its obvious the saudis are targeting india and indonesia market…and he say somehting stupid like this….LOL
So how come when the Singaporeans acquire a % in our nation’s strategic businesses (take telco and medicine for example), it has nothing to do with "confidence in our economy"?
Crap lah, not like that investment amount is going into our national coffers anyway. Even if it does, we will have to wait for an MP to die before enjoying it.
"…. confidence in our economy."??
Where is the linkage? Or they just treat this deal as a bridge for them to tap on OTHER markets?
Benefit to them or benefit to the nation?
Everytime PM make a statement on the country economies and talking about financial subject, everyone cringes in embarassment. He know nuts about economy, his level of knowledge is so superficial and unlike Anwar Ibrahim, this guy cannot act with confidence. And he holds too many portfolio, take Home Ministry, crime index shot up, state got no police head and his deputy minister and the IGP bad mouthing each other, Pak Lah is directionless. Our ex PM goes out of the country to source business and bring new business back to Malaysia, and this current joker, go and bring half the cabinet to ink a deal buying planes Is there any value created?
All these endorsements of our economy are but a series of engineered positive, feel-good happenings that lead the the general elections soon. Nevertheless, it is a significant investment. No one can deny this.