Telco Industry Background in Malaysia

Company and industry background

Malaysia is one of the fastest growing Information and Communication Technology (ICT) market in South-East Asia. Seven years ago, the telecommunication industry in Malaysia was led by only three most popular companies such as Maxis, Digi and Celcom. They have helped people to make their lives easier. The three companies have been competing with each other to be at the top and leading the industry.

In 1990s, the government had started making substantial investment on infrastructure and communication services. The Multimedia Super Corridor (MSC) was formed with the aim to become a high technology destination for local and overseas operations. MSC Malaysia was set up in 1996 with the aim of building a competitive cluster of local ICT companies and a sustainable ICT industry. It is a national initiative to promote the transformation of the Malaysian ICT industry into world-class companies and to provide a test bed for the global ICT industry. The MSC provides state-of-the-art ICT and multimedia facilities in ‘Cyber cities’ to various businesses, including major global ICT companies.

In Malaysia, the telecommunication industry has aggressively developed through many years starting from telephone and telegraphic services after the First World War to sophisticated telecommunication network using fibre optic cable, microwave and satellite system to link the communities in the rural and urban area. The Malaysia telecommunication industry is being administered and managed by the Ministry of Energy, Water and Communications (MEWC) of Malaysia which serves as a policy formulator and service regulator for the communication sector. The ministry regulates the industry through its regulatory body, Malaysia Communications and Multimedia Commission (MCMC).

Under the 10th Malaysia Plan, the government remains supportive of vertical pillars such as the construction, retail, financial services, telecommunication, and healthcare industries, which have...