TM STRATEGY INTACT DESPITE CEO EXIT

KUALA LUMPUR: Analysts are not expecting any material shift in Telekom Malaysia’s (TM) convergence strategy for now despite the resignation of Datuk Seri Mohammed Shazalli Ramly from group chief executive officer (CEO) on Wednesday.

“It is only a change of CEO, and during our conference call with the management earlier, TM has stated that the company’s position remains status quo,” said a telco analyst from a research house yesterday.

Another telco analyst said TM was in good hands as the recently-appointed acting group CEO Datuk Bazlan Osman had been with the company since 2005.

Bazlan joined TM group chief financial officer in 2005, before he was appointed as deputy group CEO in April last year.

“Therefore, we do not see any material shift in TM’s long-term convergence strategy moving forward,” said the analyst.

In an internal message to TM staff on Wednesday, Shazalli said when he first joined the group last year, it was to bring new zest to the company and to share his expertise in branding, sales and marketing.

“Rest assured TM will and must prevail. I pass the baton to Bazlan as your interim group CEO and the existing management line-up that will continue the strategic imperatives and this critical execution phase for TM,” he said.

“I take my leave in full confidence that together with all Warga Keluarga TM, our beloved institution is in good hands.”

In August last year, he announced a new execution plan — Perfexe 10 — to help it manoeuvre the increasingly challenging market environment.

The initiative involved the “perfect execution” of 10 identified pillars to address challenges facing the company.

TM’s share price rises as much as 8.31 per cent, the highest since December 22, after the company confirmed Shazalli’s resignation. It closed 5.63 per cent, or 21 sen, higher to close at RM3.94 yesterday.