The new corporate strategic direction in the information age: a study on Telekom Malaysia / Mohd Soffi Puteh

Today, the world has seen a change in the trend of corporate restructuring. The theory of diversification reduces risk seems to be put aside. More and more companies are now interested in focusing on their core competencies rather than being diversified, leaving the merger and acquisition trend away. Financial aspect is the most common reason for these companies to go for divestiture. This has brought into attention the announcement made by Telekom Malaysia of its major restructuring at the time where it is making RM millions of profits every year. Thus, this paper attempts to look into the real situation of Telekom Malaysia as well as to find out why is it necessary to go for such a restructuring. The method adopted was a case study and data were collected by ways of interviews and review of annual reports and documents. The findings shows that although it is not having a serious financial difficulty or bad performance, but there are certain aspects need to be reorganized and changed for a better future of the company. It is seen as a continuous improvement of its performance for this new world economy. Finally, it has came out with the plan to divest its operating divisions so as to operate independently from their holding company, Telekom Malaysia.