‘MALAYSIA SPRINGBOARD TO S-E ASIA’
Potential Axiata-Telenor merger will attract more Norwegian firms to invest in country, says ambassador
THE potential strategic alliance between Axiata Group Bhd and Telenor Group of Norway will send a signal to other Norwegian companies that Malaysia is the best springboard into Southeast Asia.
Norwegian ambassador to Malaysia Gunn Jorid Roset told the New Straits Times that the proposed merger of the Asian operations of Axiata and Telenor would also strengthen the two nations’ relationship.
“From the governments’ perspectives,
we are optimistic that the merger will materialise.
“Telenor is one of the world’s largest mobile telecommunications companies and for it to have this commitment with a Malaysian firm will send strong signals to other Norwegian companies looking to set up shop in the region,” she said.
Thomas Sjoberg, chairman of the Malaysia Norwegian Business Council, agreed with the sentiment.
“The most important thing here is that Telenor chose a Malaysian firm to merge with. It could have chosen other countries in Southeast Asia and yet it chose a Malaysian firm. This definitely sends a signal to other Norwegian companies,” he said.
News first broke on May 6 that the two telcos had hired foreign investment banks to advise on the merger and acquisition exercise. Telenor and Axiata are expected to hold 56.5 and 43.5 per cent stakes, respectively, in the combined entity, pending a due diligence expected to be completed in August.
The new entity is set to become one of Asia’s largest regional telcos with 300 million mobile customers and presence in nine regional markets.
Sjoberg shared that Kuala Lumpur has rapidly become the city in choice for Norwegian firms looking to branch out into Asean, especially on the back of the change of government.
“The Malaysian government, despite the administration change, has always been very accessible to businesses. This could be seen through the setting up of multiple agencies under the International Trade and Industry Ministry, which has been very helpful,” he said.
He said the competitively priced ringgit against the Singapore dollar also played a part in Norwegian companies coming to Malaysia.
Roset said Norwegian industries that had shown interest investing in Malaysia, besides the existing oil and gas (O&G) sector and telcos, would be renewable energy.
“Yes, there are smaller players in O&G that have set their bases here in Malaysia and there also interest from bigger companies in renewable energy such as hydro and solar that are looking to set shop here,” she said.
As of first quarter of this year, Malaysian imports from Norway stood at RM359.86million, while exports were RM232.12 million.