ENRICHING LIVES EXPANDING HORIZONS - Maxis

ENRICHING 

LIVES 

EXPANDING 

HORIZONS 

ANNUAL REPORT 2011 

Maxis Berhad (867573-A) 

Level 18, Menara Maxis 

Kuala Lumpur City Centre 

Off Jalan Ampang 

50088 Kuala Lumpur 

Maxis Berhad (867573-A) ANNUAL REPORT 2011 

maxis.com.my

Maxis is all about enriching lives and expanding horizons for our customers. By pioneering the 

convergence of mobile telephony and the internet. By introducing new devices and delivery systems. 

Expanding wireless and fixed solutions for business and for the home. Expanding content, access, 

storage, and on-demand services for a richer internet experience. And more importantly, enriching 

lives and bringing people closer.

CONTENTS 

Introduction 

2 Our Company 

3 Our Mission, Vision and Values 

6 Corporate Structure 

7 Corporate Information 

8 Investor Relations 

12 Awards and Recognition 

14 Milestones 

The Board of Directors and 

Senior Management 

22 Board of Directors 

24 Board of Directors Profiles 

30 Organisation Structure 

32 Senior Management 

34 Senior Management Profiles 

Performance Highlights 

40 Performance at a Glance 

42 Financial Highlights 

44 Value Added Statement 

45 Quarterly Financial Performance 

46 Summarised Statement of 

Financial Position 

47 Segmental Analysis 

48 Operating Performance 

Indicators 

49 Financial Calendar 

Business Review 

50 Chairman’s Statement 

56 CEO’s Statement 

65 Segments, Products and Services 

78 Customers First 

84 Inspiring People 

87 Corporate Responsibility 

96 Outlook 

Financial Statements 2011 

100 Directors’ Report 

Financial Statements 

106 Income Statements 

107 Statements of 

Comprehensive Income 


Financial Position 


Changes in Equity 

113 Statements of Cash Flows 

116 Notes to the Financial 

Statements 

197 Supplementary Information 

198 Statement by Directors 

199 Statutory Declaration 

200 Independent Auditors’ Report to 

the Members of Maxis Berhad 

Corporate Governance 

204 Audit Committee Report 

211 Statement on Corporate 

Governance 

230 Internal Control Statement 

235 Directors’ Responsibility 

Statement 

236 Risk Management 

239 Ethical Business Practices 

Analysis of Shareholdings 

241 Size of Shareholdings 

242 Distribution Table According to 

Category of Shareholders 

243 Directors’ Interest in Shares 

244 30 Largest Shareholders 

246 Information on Substantial 

Shareholders 

Other Information 

248 List of Properties Held by 

Maxis Berhad 

250 Disclosure of Recurrent Related 

Party Transactions 

279 Additional Disclosures 

280 Material Contracts 

286 Glossary 

289 Maxis Centres 

290 Maxis Exclusive Partners 

Annual General Meeting 

301 Notice of Annual 

General Meeting 

Form of Proxy 

Request Form

2 

Introduction 

OUR 

COMPANY 

Maxis Up Close and Personal 

At Maxis we take the idea of being 

up close and personal to a whole 

new level. We are Malaysia’s biggest 

integrated communications service 

provider but we keep our customer 

relationships intimate, sustaining 

close ties over great lengths of time. 

Both businesses and individuals 

realise that the ubiquitous reach of 

our services has enabled a rich 

customer experience. 

Our commitment to taking the 

technology and innovation high 

ground for mobile and fixed voice, 

messaging, mobile internet and wired 

and wireless broadband has allowed 

our almost 14 million subscribers to 

embrace 24/7 lifestyles. This means 

easy interfaces between work and 

leisure, education and entertainment 

and most importantly business-to 

business communications and social 

interaction. At Maxis we are building a 

brave new world where the virtual and 

real meet seamlessly. 

Front Runners with a Cause 

On a day-to-day basis we push the 

frontiers of available technology as 

well as the mobile experience for our 

customers. How can we deliver more 

to our customers by harnessing the 

technologies of the future? How can 

we increase data speeds and embellish 

communications exponentially? We 

are confident that the quality of our 

people and their drive to stay the course 

will result in clever and exciting ideas 

to enhance the ways in which our 

customers communicate. We thrive on 

the unexpectedness of making these 

discoveries. We like to keep our game 

fresh. We are the biggest in the business 

but also the most nimble. 

Maxis has the largest high-speed network 

footprint in the country with 95% 

2G coverage and 81% 3G coverage. 

This means our customers are able to 

‘thread’ their lives from work to home 

seamlessly. Since our inception in 1995, 

we have always been at the forefront 

of technology. We were the first to 

launch high-speed networks in Malaysia 

including 3G, 3.5G, 3.5G+ and the first 

to conclude LTE (Long Term Evolution) 

trials. We have taken the lead in active 

network sharing in the country. In 

October 2011, Maxis and U Mobile Sdn 

Bhd entered into a landmark agreement 

to share Maxis’ 3G radio access networks 

(RAN), making the partnership the first 

active 3G RAN sharing arrangement to be 

deployed in Malaysia. 

Being simply the best means we have to 

push boundaries, making our products 

and service offerings hard to beat. Maxis 

was the first to bring the BlackBerry, 

Apple iPhone, Galaxy Tab, Windows 7 

and Android smartphones to Malaysia. 

We were also first to launch innovative 

services which were world-firsts; Maxis- 

PayPal partnership, myDEALs and 

Maxis@Formula1. Regionally, Maxis 

created milestones by being a frontrunner 

with Maxis 1Store, ONEMusic, 

Maxis Games and Maxis Movies. In 

Malaysia, FINDER301, Unity Solutions 

and Fashionista set fresh benchmarks in 

mobile communications experiences. 

We actively pursue partnerships for 

life-enriching services such as online 

payment, remittance, social networking, 

music, games and movies. We continue 

to nurture our customer relationships 

with the launch of Maxis Home. This full 

suite of integrated services encompasses 

high-speed internet via fibre, mobile 

and fixed wireless access, voice, valueadded 

services and content, which can 

be experienced across multiple screens 

– mobile, tablet and personal computer. 

Not surprisingly, Maxis’ non-voice revenue 

earnings spotlights us as one of the top 

performers in the Asian region with 

45.3% of mobile revenue being nonvoice 

revenue and with over 7.5 million 

of our customer base being active mobile 

internet users as at Q4 2011. 

First Among Equals 

Maxis’ growth and strong track record of 

enabling innovation, excellent customer 

experience and value to stakeholders 

have won the company numerous awards 

including FinanceAsia’s Best Managed 

Company Award 2011 (Top 3), Asia’s Best 

Employer Award 2010 and 2011 from 

Singapore’s Employer Branding Institute; 

Frost & Sullivan’s Malaysia Excellence 

Awards 2011 for Mobile Service Provider 

of the Year; and the Brand of the Year 

Award at the Putra Brand Awards 2011. 

Maxis also swept 15 awards at the 12th 

Customer Relationship Management 

and Contact Centre Association (CCAM) 

Annual Awards, including the prestigious 

Gold Award for the Best In-house 

Inbound Contact Centre above 100 seats. 

This marks the second consecutive year 

that Maxis has won this award. Maxis 

also won the Corporate Nationhood 

Initiatives Award in recognition of its 

contribution to national unity, integration 

and 1Malaysia. 

Reciprocity with the community is an 

integral part of Maxis. Maxis’ Corporate 

Responsibility (CR) efforts focus on 

making a ‘Positive Impact’, harnessing 

leading-edge technology and innovation 

to create value for the economy, society 

and the environment. Maxis has been 

dedicated to working alongside the 

Ministry of Information Communication 

and Culture Malaysia (KPKK) and 

the Malaysian Communications and 

Multimedia Commission (SKMM) on 

community investment programmes 

namely Maxis Cyberkids and Maxis 

Mobile Content Challenge to increase 

people’s access to the digital platform. 

Additionally, Maxis contributes towards 

the nation’s capacity-building by providing 

scholarships to outstanding and deserving 

Malaysians to pursue their education in 

leading local and overseas universities. 

Maxis was listed on the Main Market 

of Bursa Malaysia Securities Berhad in 

November 2009. 

For more information, please visit: 

www.maxis.com.my

MAXIS BERHAD 


3 

Introduction 

OUR MISSION, 

VISION 

AND VALUES 

To become the nation’s premier integrated 

communications service provider. 

To bring the future to our customers’ lives 

and businesses, in a manner that is simple, 

personalised and enriching, by efficiently and 

creatively harnessing leading-edge technology 

and delivering a brand of service experience 

that is reliable and enchanting. 

SIMPLE 

TRUSTWORTHY 

CREATIVE 

BRAVE

4 

FARTHER. FASTER 

Enjoy the scenery while you enjoy the coverage. No matter how 

remo 

te. Today, we have 

the fastest, most advanced high-speed 

networ 

ork. 

We are already wo 

rking on ‘what next?’. The Maxis 

next gen 

eneration 4G network 

is coming soon to a phone (and 

fiel 

eld) near you. 

NETWORK 

HOME 

ROAMING 

MOBILE INTERNET

MAXIS BERHAD 


5 

CUSTOMERS FIRST 

LIFE SERVICES 

CLOUD 

DISTRIBUTION

6 

Introduction 

CORPORATE 

STRUCTURE 

MAXIS 

BERHAD 

100% 

Maxis Mobile 

Sdn Bhd 

100% 


(L) Ltd 

100% 

Maxis Broadband 

Sdn Bhd 

100% 

Maxis Online 

Sdn Bhd 

100% 

Maxis International 

Sdn Bhd 

100% 

Maxis Asia 

Access Pte Ltd 

100% 


Services Sdn Bhd 

75% 

Advanced Wireless 

Technologies Sdn Bhd 

100% 

UMTS (Malaysia) 

Sdn Bhd 

100% 

Maxis Collections 

Sdn Bhd 

100% 

Maxis Multimedia 

Sdn Bhd 

NOTE: 

The above structure represents Maxis 

Berhad and its subsidiaries. Please refer 

to pages 155 and 156 of this Annual 

Report for principal activities of the 

subsidiaries.

MAXIS BERHAD 


7 

Introduction 

CORPORATE 

INFORMATION 

Board of Directors 

Raja Tan Sri Dato’ Seri Arshad 

bin Raja Tun Uda 

Chairman/ 

Independent Non-Executive Director 

Robert William Boyle 


Dato’ Mokhzani bin Mahathir 


Asgari bin Mohd Fuad Stephens 


Ghassan Hasbani 

Non-Executive Director 

Dr Zeyad Thamer H. AlEtaibi 


Dr Fahad Hussain S. Mushayt 


Augustus Ralph Marshall 


Chan Chee Beng 


Sandip Das 

Chief Executive Officer/Executive Director 

Senior Independent Director 

Dato’ Mohkzani bin Mahathir 

e-mail : mmokhza@maxis.com.my 

Company Secretary 

Dipak Kaur 

(LS 5204) 

Auditors 

PricewaterhouseCoopers 

Level 10, 1 Sentral 

Jalan Travers 

Kuala Lumpur Sentral 


Malaysia 

Tel : + 603 2173 1188 

Fax : + 603 2173 1288 

Head of Internal Audit 

Chow Chee Yan 

(Profile as disclosed on page 36 

of this Annual Report) 

General Counsel 

Stephen John Mead 

(Profile as disclosed on page 36 

of this Annual Report) 

Head of Regulatory 

Yap Chong Ping 

Investor Relations 

Roselina Khong 

Tel : + 603 2330 7000 

Fax : + 603 2330 0555 

e-mail : ir@maxis.com.my 

Registered Office 


(Company No 867573-A) 





Malaysia 

Tel : + 603 2330 7000 

Fax : + 603 2330 0590 

Website : www.maxis.com.my 

Share Registrar 

Symphony Share Registrars Sdn Bhd 

Level 6, Symphony House 

Block D13, Pusat Dagangan Dana 1 

Jalan PJU 1A/46 

47301 Petaling Jaya 

Selangor 

Tel : + 603 7841 8000 

Fax : + 603 7841 8008 

Stock Exchange Listing 

Main Market of Bursa Malaysia 

Securities Berhad 

Listed since 19 November 2009 

Stock Code : 6012 

Enquiries/Assistance pertaining 

to matters relating to the 

Third Annual General Meeting 

Toll Free Number : 1800 828 001 

e-mail : agm2012@maxis.com.my 

(valid from 2 May 2012 to 8 June 2012)

8 

Introduction 

INVESTOR 

RELATIONS 

Commitment to Shareholders 

As a leading communications service 

provider in Malaysia, Maxis is committed 

to creating value for its shareholders, 

and its strategic achievements and 

directions for value creation are outlined 

in the CEO’s statement. In addition, 

Maxis is committed to returning value 

to shareholders via a dividend policy of 

active capital management (see section 

on Dividend Policy). 

Since its listing in November 2009, Maxis 

has declared interim dividends on a 

quarterly basis, and a final dividend in 

each financial year, thus providing cash 

returns to shareholders on a regular basis. 

For 2011, Maxis has declared/ 

recommended dividends totaling 

RM3.0 billion (40.0 sen/share) to our 

shareholders, comprising: 

• four interim dividends of RM600 

million (8.0 sen/share) per quarter 

totaling RM2.4 billion (32.0 sen/ 

share) for the year; and 

• a recommended final dividend of 

RM600 million (8.0 sen/share) subject 

to shareholders’ approval. 

The total represents a dividend yield 

of 7.3% based on the closing price of 

RM5.48 as at end of 2011. 

Maxis Share Price Performance – 1 January 2011 to 31 December 2011 

5.55 

5.50 

5.48 

5.45 

5.40 

5.35 

5.30 

Last Price 5.48 

High on 03/04/11 5.53 

Average 5.395 

Low on 10/10/11 5.19 

5.25 

5.20 

Volume 2.665M 

10M 

5M 

2.665M 

Jan 

Feb 

Mar 

Apr 

May 

Jun 

2011 

Jul 

Aug 

Sep 

Oct 

Nov 

Dec 

20 

0

MAXIS BERHAD 


9 

2011 2010 2009 

Dividends (RM’m) Interims 2,400 2,400 900 

Final 600 600 225 

Total 3,000 3,000 1,125 

Dividend Per Share (sen) Interims 32.0 32.0 12.0 

Final 8.0 8.0 3.0 

Total 40.0 40.0 15.0 

Earnings Per Share (sen) 33.7 30.6 n/m 

Payout Ratio 118.7% 130.7% n/m 

Dividend Yield 7.3% 7.5% n/m 

Dividend Policy 

Our full dividend policy, as stated in our 

IPO Prospectus dated 28 October 2009, is 

reproduced below for your reference: 

“The declaration of interim dividends and 

the recommendation of final dividends 

are subject to the discretion of the Board 

and any final dividend for the year is 

subject to shareholders’ approval. It is the 

Company’s intention to pay dividends to 

shareholders in the future. However, such 

payments will depend upon a number 

of factors, including Maxis’ earnings, 

capital requirements, general financial 

conditions, the Company’s distributable 

reserves and other factors considered 

relevant by the Board. 

The Company has proposed to adopt 

a dividend policy of active capital 

management, and proposes to pay 

dividends out of cash generated by its 

operations after setting aside necessary 

funding for network expansion and 

improvement and working capital needs. 

As part of this policy, the Company 

targets a payout ratio of not less than 

75% of its consolidated Profit After Tax 

under Malaysian GAAP in each calendar 

year beginning financial year ending 

31 December 2010, subject to the 

confirmation of the Board and to any 

applicable law, licence and contractual 

obligations and provided that such 

distribution would not be detrimental to 

its cash needs or to any plans approved 

by its Board. Investors should note that 

this dividend policy merely describes 

the Company’s present intention and 

shall not constitute legally binding 

statements in respect of the Company’s 

future dividends which are subject to 

modification (including reduction or 

non-declaration thereof) at the Board’s 

discretion. 

As the Company is a holding company, 

its income, and therefore its ability 

to pay dividends, is dependent upon 

the dividends and other distributions 

that it receives from its subsidiaries. 

The payment of dividends or other 

distributions by the Company’s 

subsidiaries will depend upon their 

operating results, financial condition, 

capital expenditure plans and other 

factors that either respective boards of 

directors deem relevant. Dividends may 

only be paid out of distributable reserves. 

In addition, covenants in the loan 

agreements, if any, for the Company’s 

subsidiaries may limit their ability to 

declare or pay cash dividends.” 

Notwithstanding the above, the payout 

ratios for 2010 and 2011 were 131% 

and 119% respectively.

10 

Introduction 

INVESTOR 

RELATIONS 

Continued 

Investor Engagement 

Maxis engages proactively and regularly 

with the investment community to share 

our strategy and vision and to discuss 

our operations, business and financial 

performance, whilst ensuring timely and 

fair dissemination of information. We 

value the relationship we have with our 

investors and communication with them 

is of primary importance to us. 

The key spokespersons and representatives 

for Investor Relations of the Company are 

the Chief Executive Officer and the Chief 

Financial Officer (see Board of Directors 

Profile and Senior Management Profile 

for their biographies) who engage with 

research analysts and institutional investors 

directly. From time to time, the Joint Chief 

Operating Officers also participate in these 

discussions. Such interaction is facilitated 

by an Investor Relations unit. 

We maintain ongoing dialogue with 

the investment community through 

a programme of Investor Relations 

activities. Some of these activities are 

described below. 

Announcement of Quarterly 

Financial Results 

Each quarter, our financial results are 

released publicly through announcements 

to Bursa Securities. These announcements 

contain detailed financial statements, 

summary of financial and operational 

indicators and an analysis of performance. 

Following this release, a media briefing is 

held to update members of the press and 

other media and to provide clarification 

on questions which they may have. In 

addition to this, a conference call is held 

for analysts who are based in Malaysia or 

abroad. 

The media briefing is usually led by the 

Chairman and analyst conference call 

by the CEO. For both events, the Joint 

COOs, CFO and other members of 

senior management are in attendance, 

reflecting the commitment to providing 

a high degree of clarity to the public and 

investment community. 

The presentation material for the 

media briefing and analyst call 

is simultaneously made available 

publicly on the Maxis website. In the 

presentation material, financial and 

operational indicators relating to the 

quarterly results are depicted primarily in 

graphical form, with messages in point 

form, to facilitate ease of understanding 

and analysis.

MAXIS BERHAD 


11 

Meetings, Conferences and 

Roadshows 

Maxis continues to attract strong interest 

from both the local and international 

investment communities. 

In order to maintain regular contact 

and interaction with these parties, we 

engage in a variety of investor relations 

activities in addition to meetings with 

investors and analysts at our offices. 

These activities include participation 

in major investment conferences, both 

locally and in the region. In 2011, Maxis 

attended the annual Credit Suisse 

Asian Investment Conference in Hong 

Kong and the annual Invest Malaysia 

conference in Kuala Lumpur. We also 

held group briefings for local fund 

managers, and undertook a non-deal 

roadshow covering the major financial 

market centres of Singapore, Hong Kong 

and London. These events provide an 

excellent opportunity to maintain regular 

contact with shareholders, to reach 

potential investors and to build rapport 

with international investors. 

Website 

Our corporate website has a section on 

Investor Relations which provides relevant 

information of interest to investors such 

as announcements to Bursa Securities, 

financial results, presentation materials 

and annual reports. In addition, a list 

of press releases may be found in the 

adjacent Media Centre section of the 

website. 

Feedback and Enquiries 

As part of our continuing improvement 

process, we welcome feedback on our 

Investor Relations endeavours 

and information provided, in order 

to further improve our interaction 

with the investment community. 

In this respect investors with useful 

suggestions, requests or clarification 

required are encouraged to contact 

us at ir@maxis.com.my. We look 

forward to the continued engagement. 

WE VALUE THE 

RELATIONSHIP 

WE HAVE 

WITH OUR 

INVESTORS AND 

COMMUNICATION 

WITH THEM IS 

OF PRIMARY 

IMPORTANCE 

TO US

12 

Introduction 

AWARDS AND 

RECOGNITION 

(L) Nasution Mohamed, 

Maxis Chief Financial 

Officer receiving the Best 

CFO Award (2nd Runner- 

Up) at FinanceAsia’s Best 

Companies Award 2011. 

Awards and Recognition (2011) 

Frost & Sullivan 

Malaysia Excellence Awards 2011 

Mobile Service Provider of the Year 

FinanceAsia’s Best Companies 

2011 (Malaysia) 

Best Managed Company – 3rd 

Best Corporate Governance – 4th 

Best Investor Relations – 3rd 

Best Corporate Social Responsibility – 3rd 

Most Committed to a Strong Dividend 

Policy – 4th 

UDC Business Awards 2011 

UDC Asia Best Telecommunications 

Company of the Year 2011 (Malaysia) 

Malaysia 1000 

Certificate of Excellence 

Industry Excellence Awards 

Telecommunications Sector 

2010/2011 

BASIS Publications House and Bernama 

Putra Brand Awards 2011 

The People’s Choice (all categories) 

Brand of the Year 

Gold Award 

Communication Networks Category 

PC.com Product Awards 2010 

Best Postpaid Telco 

Best CSR 

PIKOM 

ICT Leadership Awards 2011 

Member Excellence Award 

Global Telecoms Business (GTB) 

Power 100 List 

Sandip Das, Chief Executive Officer, 


BCI Asia 

Business Continuity Awards 

Group Excellence in Business Continuity 

Management 2011 

Business Continuity Planning Asia Pte Ltd 

2nd Top Team 50 Enterprise 

Awards Malaysia 2011 

Honorary Award 

Malaysia Entrepreneurs’ Association 

(Persatuan Usahawan Maju Malaysia- 

PUMM) 

12th CCAM Excellence Awards 2011 

Gold Awards 

Best In-House Inbound Contact Centre 

(above 100 seats) in Malaysia 

Best In-House Outbound Contact Centre 

(below 100 seats) in Malaysia 

Best CRM Programme 

Best Social Media Programme in 

Contact Centre 

Prestige Award in Corporate Social 

Responsibility 

Best Manager (above 100 seats) 

Silver Awards 

Best People Contact Centre 

Best Manager (above 100 seats) 

Best Contact Centre Support Professional 

Best Telemarketer 

Bronze Awards 

Best Green Contact Centre 

Most Creative Contact Centre 

Best Process Excellence 

Best Telemarketer 

Best Contact Centre Professional 

Global Telecoms Business (GTB) 

Innovation Awards 2011 

SMS Network Innovation 

Winner: Maxis with Acision 

Missed SMS Notification Service 

Game Axis Malaysia Survey 2010 

Editor’s Choice Awards 

Favourite Mobile Game 

Telecommunications Provider 

Asia’s Best Employer Brand Awards 

By Employer Branding Institute of 

Singapore 

Malaysia’s 100 Leading Graduate 

Employers 2011 

Most Popular Graduate Employer Finalist 

Telecommunications

MAXIS BERHAD 


13 

The company was also 

awarded the coveted 

Mobile Service Provider of 

the Year award at the 2011 

Frost & Sullivan Malaysia 

Excellence Awards. It was 

the third time that Maxis 

had been conferred the 

prestigious award. 



World Communications 

Awards 2010 

Top Five Best Mobile Operators 

Corporate Nationhood Initiatives 

Award 2010 

By The New Straits Times 

Reader’s Digest Trusted 

Brand Awards 

Phone Service (Fixed Line/Mobile) 

KLIFF Islamic Finance Awards 2010 

Most Outstanding Islamic Finance Product 

– Maxis Islamic IPO US$3.3 billion 

CMO Asia Awards for Excellence 

in Branding and Marketing 

Asia’s Best Brand 2010 

“thebrandlaureate” The Grammy 

Awards for Branding 

Specialty Awards Best Brands in Brand 

Communications 2009 – 2010 

11th CCAM Excellence 

Awards 2010 

Gold Awards 

Best In-House Contact Centre 

(above 100 seats) in Malaysia 

Best CRM Programme Implementation 

in Malaysia 

Silver Awards 

Mystery Shopper Results, In-House 



(above 100 seats) 

Bronze Awards 

Best Contact Centre Team Leader 


(over 100 seats) 

Best Contact Centre Support Professional 

(over 100 seats) 

11th CCAM Prestige Awards 2010 

Corporate Social Responsibility Award 

Computerworld Malaysia’s 4th 

Customer Care Awards 2010 

Telecommunications Services 

South East Asia HR 

Excellence Awards 

Employer of the Year 2010 

Malaysian HR Awards 2010 

Gold Award – HR Innovation Category 

Malaysia’s 100 Leading Graduate 

Employers 2010 

Most Popular Graduate Employer 

(Telecommunications) 

Asia HRD Congress 2010 

Contribution to HR Community Award 

for Outstanding Contribution Towards 

Human Capital Development 

2009 FinanceAsia 

Achievement Awards 

Deal of the Year 

Best Malaysia Deal 

Best Equity Deal 

IFR Asia 2009 Roll of Honour 

Malaysia Capital Markets Deal 

– Maxis’ RM11.2 billion IPO 

Frost & Sullivan Malaysia 

Telecoms Awards 2009 

Mobile Data Service Provider of the Year 

PC.com Power Brand 2009 

Top Ten Tech Brands 

10th PC.com Product Awards 2009 

Best Postpaid Telco 

Best Mobile Content 

Special CSR Award 

Brand Finance Awards 2009 

No 4 Brand in Malaysia 

Reader’s Digest Trusted Brand 

Awards 2009 

Brand of Choice – Phone Service (Fixed 

Line/Mobile)

14 

Introduction 

MILESTONES 

13 January 2011 

Maxis honoured with Corporate 

Nationhood Initiatives Award 

Maxis was conferred the Corporate 

Nationhood Initiatives Award for 2010, in 

recognition of its contribution to national 

unity, integration and 1Malaysia. 


Maxis was Presenting Sponsor of 

MRCA 8TV 2011 Entrepreneur Awards 

The 2011 MRCA 8TV Entrepreneur 

Awards welcomed Maxis as presenting 

sponsor at the awards night graced 

by Yang Berhormat Dato’ Saifuddin 

Abdullah, Deputy Minister of Higher 

Education. 


Maxis celebrated Mobile Content 

Challenge Entrepreneurs 

Maxis hosted Mobile Content Challenge 

entrepreneurs who had successfully 

commercialised their content, 

applications, or services, or who had 

started new business ventures. 

YB Dato’ Joseph Salang, Deputy Minister 

of Information Communication and 

Culture officiated at the event. 

7 February 2011 

Maxis launched Managed M2M 

Maxis introduced Maxis’ Managed M2M 

(Machine-to-Machine), the country’s 

first managed wireless M2M service. The 

launch was officiated by Ms Ng Wan 

Peng, Chief Operating Officer of the 

Multimedia Development Corporation 

(MDeC). 


Maxis launched new Movies 

Applications and Maxis Movie Day 

Maxis launched a new Maxis Movies 

Application that is integrated with 

PayPal’s mobile payment service, and the 

Buy-1-Get-1 Free movie ticket offer every 

Maxis Movie Day (every Tuesday), on 

movies screened after 6.00pm. 


Maxis won Best Postpaid Telco and 

Best CSR Award at PC.com Awards 

2011 

Maxis walked away with the Best 

Postpaid Telco and Best CSR awards at 

the PC.com Awards Night 2011. This is 

the sixth year in a row that Maxis has 

been named Best Postpaid Telco by the 

awards organiser. 

11 March 2011 

Maxis won top awards at the 2011 

Putra Brand Awards 

Maxis was named the Putra Brand of the 

Year at the 2011 Putra Brand Awards. 

Maxis also received the Gold award in the 

Communications Network Category for 

the second year in a row. 

15 March 2011 

Maxis first to introduce GPRS Data 

Roaming Service for prepaid users 

Maxis Hotlink customers were the first 

prepaid customers in Malaysia to enjoy 

GPRS Data Roaming. The service allowed 

outbound prepaid users to use mobile 

data while roaming internationally. 

16 March 2011 

Easy Top-Ups and Easy Rewards 

Anywhere, Anytime 

Maxis’ new self-service Hotlink iChannels 

was introduced for customers looking 

for an easier way to top up their Hotlink 

prepaid accounts. Maxis’ Mobile2Top-Up 

enables customers to use any Malaysianissued 

Visa or Mastercard, prepaid, credit 

and debit cards to pay for top-ups. 

18 March 2011 

Maxis customers first to enjoy the 

Google Nexus S 

Maxis customers were the first to enjoy 

the revolutionary Android device, the 

Google Nexus S, also known as the 

“Google Phone”. 

31 March 2011 

Maxis scored a first in multiple-play 

Maxis launched the first multiple-play 

service in Malaysia with Maxis Home 

Services. Dato’ Joseph Salang, Deputy 

Minister of Information Communication 

and Culture, officiated at the launch.

MAXIS BERHAD 


15 

1 April 2011 

Maxis kicked off new decade of 

Golf Rewards 

Maxis launched the Maxis Team Golf 

Tour (MTGT) 2011, Malaysia’s biggest 

and most prestigious amateur team 

golf event. The grand final was held in 

Thailand at two of the top golf courses 

in the country - the well-known Siam 

Country Club and the Jack Nicklausdesigned 

Laem Chabang International 

Country Club. 

5 April 2011 

Malaysian Universities chose Maxis 

as their Integrated Communications 

Service Partner 

Maxis launched the Maxis Integrated 

Partner in Education (MIPE) programme, 

a fully-integrated communications 

suite of solutions to enrich campus 

life by providing quality broadband 

connectivity and services; internship and 

entrepreneurial opportunities; as well as 

preferential rates for smart devices. 

8 April 2011 

Dunia Internetmu from Maxis 

empowered Malaysians with Internet 

offerings across multiple screens 

Maxis launched Dunia Internetmu, an 

initiative empowering Malaysians through 

access to relevant, reliable and secure 

local content that is aggregated on a 

single URL via myLaunchpad on their 

mobile devices and the web. 

14 April 2011 

Maxis won coveted Mobile Service 

Provider of The Year award at the 

2011 Frost & Sullivan Malaysia 


Maxis was declared the Mobile Service 

Provider of the Year at the 2011 Frost 

& Sullivan Malaysia Excellence Awards. 

Sandip Das, Chief Executive Officer of 

Maxis, received the award from the 

Secretary-General of the Ministry of 

International Trade and Industry, Datuk 

Dr Rebecca Fatima Sta Maria. 

14 April 2011 

Maxis extended 3G leadership to 

80% of the country’s population 

Maxis announced a major milestone in 

the Malaysian broadband industry when 

it became the first service provider to 

surpass 5,000 sites spanning Peninsular 

Malaysia, Sabah and Sarawak. 

19 April 2011 

Maxis presented Maxis Scholarship 

for Excellence Awards 

Maxis presented 21 brilliant young 

Malaysians with the Maxis Scholarship 

for Excellence Awards (MSEA). These 

students will pursue undergraduate 

programmes locally and abroad. 

27 April 2011 

KSL Properties and Maxis to provide 

Integrated End-to-End High-Speed 

Broadband Solutions in Johor 

More customers in Johor Bahru will be 

able to experience high-speed internet 

in 2012 following an agreement signed 

between Maxis and KSL Properties. 

TOP 

Maxis received the 

Corporate Nationhood 

Initiatives Award for its 

contribution to national 

unity and integration. 

BELOW 

Maxis celebrated 

technopreneurs from its 

Mobile Content Challenge 

programme who had 

successfully commercialised 

their content, applications 

and services. Dato’ 

Joseph Salang, Deputy 

Minister of Information 

Communication and 

Culture graced the event.

16 

Introduction 

MILESTONES 

Continued 

11 May 2011 

Maxis customers benefit from 

Data and Device Protection with 

Maxis Secure 

Maxis launched its Maxis Secure initiative 

which offers a suite of services including 

Maxis Anti-Theft, Complete Phone Back 

Up, Anti-Virus, Internet Security and 

Remote Surveillance services. 

19 May 2011 

Maxis Employees benefit from 

Wellness Programme 

Maxis launched a complete, customised 

wellness programme entitled “My 

Wellness, My Choice” to ensure a 

sustainable lifestyle for over 3,400 of its 

employees nationwide. 

7 June 2011 

Maxis won 2011 Global Telecoms 

Business Innovation Award 

Maxis Berhad received the prestigious 

2011 Global Telecoms Business (GTB) 

Innovation Award for its Missed SMS 

Notification Service, developed with its 

partner Acision. 

14 June 2011 

Maxis Customers in Kuantan enjoy 

fastest Wireless Broadband speed 

Maxis was declared the “speed king” 

by leading publication Mobile World for 

its broadband speed. Road tests were 

carried out in three different locations in 

Kuantan and results showed that Maxis 

broadband users in Kuantan enjoyed 

download speeds of up to 4 to 5 Mbps 

on the Maxis network. 

21 June 2011 

Maxis Customers in Johor Bahru 

enjoy Fastest Wireless Broadband 

Speed 

Mobile World confirmed that Johor 

Bahru customers enjoyed the fastest 

broadband speeds with Maxis. Road tests 

were carried out in different locations in 

Johor Bahru and results showed Maxis 

customers experienced browsing speeds 

of between 2 Mbps and 3 Mbps. 

28 June 2011 

Maxis Cyberkids Camp reached 

out to the Sabah community with 

Sustainable E-education 

Maxis took its award-winning Maxis 

Cyberkids corporate responsibility 

programme to Kampung Moyog in 

Sabah, training children and parents on 

the use of internet applications. 

2 July 2011 

Maxis Community Training 

Programmes 

Maxis reinforced its commitment to local 

communities by organising technologybased 

training programmes in Kampung 

Chennah and Kuala Klawang in Negeri 

Sembilan to complement the WiFi 

service in the area. YB Dato’ Seri Utama 

Dr Rais Yatim, Minister of Information 

Communication and Culture, presented 

certificates to participants and launched 

blogs which they created as part of the 

programme. 

6 July 2011 

Maxis nurtures a new generation of 

world-class Malaysian athletes 

Maxis signed up seven Malaysian Sports 

Ambassadors as part of its continued 

commitment to nurturing the country’s 

best and most dedicated athletes. 

15 July 2011 

Maxis introduced the BlackBerry 

Playbook 

Maxis launched the most powerful ultraportable 

tablet to hit Malaysian shores at 

an exclusive “by invitation only” event for 

300 members of the media and selected 

customers. 

27 July 2011 

Maxis mZakat Services for Muslim 

customers during Ramadhan 

Maxis’ Muslim customers enjoyed the 

convenience of being able to pay Zakat 

Fitrah via SMS in Selangor, Melaka, 

Sabah, Kedah, Perlis, Pahang and 

Terengganu thanks to Maxis’ mZakat 

services. Maxis mZakat service is open to 

both postpaid and prepaid customers. 

2 August 2011 

Maxis won Asia’s Best Employer 

Brand Award for the second time 

Maxis was declared Asia’s Best Employer 

at the second Asia’s Best Employer 

Brand Awards, hosted by the Employer 

Branding Institute of Singapore.

MAXIS BERHAD 


17 

9 August 2011 

Maxis and Alcatel-Lucent deployed 

First 100G Core Transmission Network 

in Asia Pacific 

Maxis with Alcatel-Lucent undertook 

a major transformation of Maxis’ 

core transmission network to cope 

with increased data traffic, simplify 

its network, and reduce costs while 

providing higher efficiency and 

robustness. 

22 August 2011 

Maxis launched Malaysia’s most 

advanced Cloud Computing Services 

Maxis launched Maxis Cloud, the most 

advanced on-demand, real-time, fully 

managed cloud service in Malaysia, 

accessible via the country’s highest-speed 

business broadband. 


Maxis reinforced its commitment to 

nurturing Malaysian talent 

Maxis presented Maxis Scholarship 

for Excellence Awards (MSEA) to 30 

outstanding young Malaysians for 

postgraduate and undergraduate studies 

at universities of their choice, locally and 

overseas. 

8 September 2011 

Easy connectivity for 

Malaysian pilgrims 

Maxis introduced a special Saudi Telecom 

Company (STC) SIM card which enabled 

pilgrims performing the Haj to make 

or receive calls and SMS within Saudi 

Arabia at local rates. With assistance 

from Tabung Haji, 17,000 SIM cards were 

distributed free of charge. 


Maxis enhanced distribution 

channels in Sabah 

About 150,000 residents in the East 

Coast of Sabah were able to enjoy the 

full suite of Maxis services with the 

opening of the new Maxis Centre in 

Sandakan, the first store built to serve 

customers in the East Coast of Sabah. 


Maxis swept seven awards at 

FinanceAsia’s Best Managed 

Companies Awards Ceremony 

Maxis Chief Executive Officer, Sandip 

Das and Chief Financial Officer, Nasution 

Mohamed, each ranked amongst the 

top three in the Best CEO and Best CFO 

categories in the 2011 awards. The 

Company was also voted into the top ranks 

of Malaysia’s Best Managed Companies; 

and won awards for Most Committed 

to Dividend Policy, Best Corporate 

Governance, Best Investor Relations and 

Best Corporate Social Responsibility. 

TOP 

Mark Dioguardi, Maxis 

Joint Chief Operating 

Officer, and Mohd Fazlin 

Shah Bin Mohd Salleh, 

President and Managing 

Director of Alcatel-Lucent 

Malaysia, marked the 

roll-out of the Maxis optical 

backbone network, the first 

100G single carrier with 

optical coherent technology 

system commercially 

deployed in Asia-Pacific. 

BELOW 

Maxis reached out to East 

Malaysian communities with 

sustainable e-education 

programmes. Children and 

parents were trained in the 

use of Internet applications, 

at Kampung Moyog in Sabah.

18 

Introduction 

MILESTONES 

Continued 


Maxis employees celebrated Hari 

Raya with over 180 children and 

senior citizens 

More than 180 underprivileged children 

and senior citizens were given a special 

Hari Raya treat by employees of Maxis 

at the KLCC Convention Centre, Kuala 

Lumpur. 


Maxis staff planted 7,500 trees 

As part of an initiative to offset its carbon 

footprint, Maxis staff took part in a 

tree-planting programme at the Sungai 

Renggam River Bank in Shah Alam, 

organised by Majlis Bandaraya Shah Alam 

(MBSA), Jabatan Pengairan dan Saliran 

(JPS), Sathya Sai Organisation, Forest 

Research Institute Malaysia (FRIM) and 

the Forestry Department of Selangor. 

18 October 2011 

Battle of The Sexes makes it to the 

world’s top Five 

Maxis revealed that membership to its 

homegrown social networking initiative, 

Battle of the Sexes, has spiralled to 1.5 

million Malaysians since its inception in 

2009. The social networking programme 

also gained accolades from two global 

innovation awards bodies in 2011, 

ranking in each case within the top five, 

and was selected as a Finalist for Best 

Social Media service at the Meffys mobile 

content awards 2011. 


Maxis recognised for Exceptional 

Customer Service 

Maxis swept 15 awards at the 12th 


and Contact Centre Association (CCAM) 

Annual Awards. It won Gold in the 

biggest and most coveted award of 

the night - the Best In-house Inbound 

Contact Centre above 100 seats, as well 

as in Best In-House Outbound Contact 

Centre below 100 seats (Sales), Best 

CRM Programme, Best Social Media 

Programme in Contact Centre and the 

Prestige Award for Corporate Social 

Responsibility (CSR). 


Maxis launched its Home Wireless 

Internet service 

Maxis launched its Home Wireless 

Internet service on its 3G/HSPA network. 

The Home Wireless Internet service 

enables customers to set up a WiFi 

spot anywhere in their home for family 

sharing, allowing for seamless internet 

connectivity. 


Maxis and U Mobile in Malaysia’s 

First Active 3G Radio Access Network 

Sharing Agreement 

Maxis and U Mobile entered into a 

landmark agreement to share Maxis’ 3G 

radio access networks (RAN), the first 

active 3G RAN sharing arrangement to 

be deployed in Malaysia. The agreement 

incorporates LTE sharing which will 

deliver even better benefits to customers. 


Maxis and KiddyTrack to bring 

Malaysian parents a Unique Child 

Locator Solution 

Maxis announced its official partnership 

with KiddyTrack in the launch of the 

first-of-its-kind child locator solution. 

This innovative GPS/GSM application is 

powered by Maxis’ Managed Machineto-Machine 

(M2M) technology, allowing 

users to locate their children or loved 

ones by sending a simple SMS. 

16 November 2011 

Maxis partnered MEASAT to provide 

High-Speed, Satellite Broadband 

Connectivity to customers across 

Malaysia 

Maxis signed on as anchor partner for 

the MEASAT-5 satellite that is designed 

for high-speed communications over an 

Internet Protocol platform, facilitating 

two-way broadband connectivity, 

products and solutions. This will give 

Maxis customers a better broadband 

experience in terms of higher data 

rate, faster service deployment time 

and lower costs versus C-band satellite 

services.

MAXIS BERHAD 


19 


Residents in Bandar Utama to enjoy 

seamless communication experiences 

with Maxis Home Services 

Maxis continued to strengthen its service 

offerings on the home front following 

a strategic alliance agreement signed 

between Maxis and BU One Management 

to provide Fibre-to-the-Home (FTTH) 

solutions for residents. 


Free online education service for 

2,300 secondary schools in Malaysia 

Maxis and the Ministry of Education 

(MOE) embarked on a smart partnership 

to increase ICT usage in schools through 

creative learning. Maxis provides free 

access to Maxis’ flagship education 

service leveraging on readily available 

school ICT infrastructure. 


Maxis celebrated Christmas with 

an underprivileged community 

in Sarawak 

Maxis employees treated 80 members of 

Sarawak’s underprivileged community to 

a special Christmas Party at the Sheraton 

Hotel in Kuching. 


Maxis Christmas Party for 

underprivileged in Sabah 

Christmas came early this year for about 

100 underprivileged people in Sabah who 

were given a special Christmas Party treat 

by Maxis employees at Sutera Harbour 

Resort in Kota Kinabalu. 

8 December 2011 

Brand new experiences at 

revamped Maxis Concept Store 

Maxis officially unveiled its concept store 

at The Gardens Mid Valley, incorporating 

a new touch and feel experience for its 

customers, including a new home and 

device corner, and the use of iPads to 

assist with customer enquiries or requests. 


Maxis brought the eagerly 

anticipated iPhone 4S to customers 

Maxis introduced the eagerly anticipated 

iPhone 4S to its customers in Kuala 

Lumpur, Johor Bahru, Penang, Kuantan, 

Kota Kinabalu and Kuching at the stroke 

of midnight, with a special launch event 

at the Kuala Lumpur Convention Centre. 

TOP 

Maxis was a partner of 

the Sahabat Korporat 

Tabung Haji programme, 

distributing 17,000 special 

STC SIM cards to pilgrims. 

At the partnership event 

were (L to R) Mariam Bevi 

binti Batcha, Maxis Head 

of Corporate Affairs; 

YBhg. Datuk Ismee Ismail, 

Chief Executive Officer 

of Lembaga Tabung Haji; 

YB Mejar Jeneral Dato’ 

Seri Haji Jamil Khir bin 

Haji Baharom (B), Minister 

in the Prime Minister’s 

Department; and YBhg. 

Tan Sri Dato’ Sri Abi Musa 

Asa’ari bin Mohamed Nor, 

Chairman of Lembaga 

Tabung Haji. 

BELOW 

Maxis management 

members dressed up in 

their home attire to launch 

its Home Wireless Internet 

Service. (L to R) Michael 

Raj Murty, Maxis Head of 

Northern Region; Harold 

Quek, Maxis Head of Home 

Products; Jeff Chong, Maxis 

Head of Mobility Products 

and International Services.

20 

LITTLE MIRACLES 

We’ve brought the internet home as never before. Because 

that’s where “connectivity” truly belongs. As in sharing. 

Bridging generations. Building understanding. Seeing the joy 

on grandpa’s face when he created his first Facebook page. 

Reconnecting to a sense of wonder. 

NETWORK 

HOME 

ROAMING 

MOBILE INTERNET

MAXIS BERHAD 


21 


LIFE SERVICES 

CLOUD 

DISTRIBUTION

22 

The Board of Directors and Senior Management 

BOARD OF 

DIRECTORS 

2 

1 

3 4 

1 Raja Tan Sri Dato’ Seri Arshad 


Chairman/Independent 


2 Robert William Boyle 

Independent 


3 Dato’ Mokhzani bin Mahathir 

Independent 


4 Asgari bin Mohd 

Fuad Stephens 

Independent 


5 Ghassan Hasbani 


6 Dr Zeyad Thamer H. AlEtaibi 


7 Dr Fahad Hussain S. Mushayt 


8 Augustus Ralph Marshall 


9 Chan Chee Beng 


10 Sandip Das 


Executive Director

MAXIS BERHAD 


23 

5 

6 7 

8 

9 10

24 


BOARD OF 

DIRECTORS 

PROFILES 

Raja Tan Sri Dato’ Seri Arshad bin Raja Tun Uda 

Chairman/Independent Non-Executive Director 

Raja Tan Sri Dato’ Seri Arshad bin Raja Tun Uda, aged 65, 

a Malaysian, was appointed as Chairman and Director of 

Maxis on 16 October 2009. 

He is presently a director of Khazanah Nasional Berhad, 

Yayasan DayaDiri and ACR Retakaful SEA Berhad. Raja Arshad 

is the chairman of Binariang GSM Sdn Bhd, Ekuiti Nasional 

Berhad, Yayasan Raja Muda Selangor and Yayasan Amir. He is 

also the Chancellor of University Selangor. 

He was formerly executive chairman and senior partner of 

PricewaterhouseCoopers (PwC), Malaysia, chairman of the 

Leadership Team of PwC Asia 7, and chairman of the Malaysian 

Accounting Standards Board and Danamodal Nasional Berhad. 

His previous international appointments include being a member 

of the PwC Global Leadership Team, the PwC Global IFRS 

Board and the Standards Advisory Council of the International 

Accounting Standards Board. His previous public appointments 

include being a member of the Securities Commission, the 

Malaysian Communications and Multimedia Commission, the 

Investment Panel of the Employees Provident Fund and the 

board of trustees of the National Art Gallery. 

He is a Fellow of the Institute of Chartered Accountants in 

England and Wales, and a member of the Malaysian Institute 

of Accountants. He is also a member of the Malaysian Institute 

of Certified Public Accountants and served on its council for 24 

years, including three years as its president. 

He sits as Chairman of the Nomination Committee.

MAXIS BERHAD 


25 





Robert William Boyle, aged 64, a British citizen, was 

appointed as a Director of Maxis on 17 September 2009. 

He is a non-executive director of Witan Investment Trust plc, 

Centaur Media plc, Schroder AsiaPacific Fund plc and Prosperity 

Voskhod Limited, all London listed companies. Previously he 

was a senior partner of PwC in London, with experience in 

leading and participating in global teams on client and PwC 

projects, including chairing the PwC European Entertainment 

and Media and UK Telecommunications Groups. His expertise 

includes financial reporting, shareholder communications, risk 

management and corporate governance. During his career he 

has worked in France and Africa and been seconded to the UK 

civil service. 

He holds a Master of Arts in Law from Oxford and is a Fellow of 

the Institute of Chartered Accountants of England and Wales. 

He sits as Chairman of the Audit Committee and is a member of 

the Remuneration and Nomination Committees. 

Dato’ Mokhzani bin Mahathir, aged 51, a Malaysian, was 

appointed as a Director of Maxis on 16 October 2009. 

He began work in 1987 as a wellsite operations engineer with 

Sarawak Shell Berhad and resigned in 1989 to pursue business 

opportunities in Kuala Lumpur. By investing in Tongkah Holdings 

Berhad (listed on the then Kuala Lumpur Stock Exchange), 

he ventured into the component manufacturing, oil and gas, 

finance and healthcare sectors. He held positions as the group 

chief executive officer of Pantai Holdings Berhad (healthcare), 

chairman of THB Industries Berhad (electronics) and group 

executive chairman of Tongkah Holdings Berhad (oil and gas, 

finance). A divestment exercise in 2001 saw him relinquish all 

positions and equity in these companies. Presently his portfolio 

of investments includes businesses in IT, oil and gas support 

services, structural steel engineering and fabrication, automotive 

sector and property development. He is a director and group 

chief executive officer of Kencana Petroleum Berhad (Kencana), 

ranked as one of Malaysia’s top Oil & Gas support services 

companies. He sits on all Kencana main subsidiaries. Through 

his private holding company, Kencana Capital Sdn Bhd, he has 

investments in IT, property and other businesses. He also holds 

dealerships for Porsche automobiles in Malaysia. He is currently 

the chairman of Sepang International Circuit Sdn Bhd, which 

hosts the FIA Formula One World Championship and is a regular 

GT race car driver. He also serves as non-executive director on 

the Board of Opcom Holdings Berhad and a director of Royal 

Automotive Club of Malaysia. 

He is a qualified Petroleum Engineer. He pursued his tertiary 

education at the University of Tulsa, Oklahoma in the USA, 

where he graduated with a Bachelor of Science in Petroleum 

Engineering. 

He sits as Chairman of the Remuneration and Employee Share 

Option Scheme (ESOS) Committees and is a member of the 

Audit and Nomination Committees.

26 


BOARD OF 

DIRECTORS 

PROFILES 

Continued 





Asgari bin Mohd Fuad Stephens, aged 51, a Malaysian, 

was appointed as a Director of Maxis on 16 October 2009. 

He is a director and founding member of Intelligent Capital 

Sdn Bhd (Intelligent Capital) and an independent non-executive 

director of Mudajaya Group Berhad. He also serves as nonexecutive 

director on the boards of JayCorp Berhad and Privasia 

Technology Berhad. He has extensive experience in both public 

and private equity investing in Malaysia. He has been involved 

in several start-up companies as an angel investor and has been 

actively involved in building their businesses as mentor. 

Several of these companies have gone public. He started his 

career working in general management in companies involved 

in a wide range of industries. He joined Usaha Tegas Sdn Bhd 

(UTSB) in 1988 where he worked in various capacities. He 

left in 1990 to join the stockbroking industry. He returned to 

UTSB in 1992 before leaving in 1995 to co-found Kumpulan 

Sentiasa Cemerlang Sdn Bhd (KSC), an investment advisory 

and fund management group. He took a year off to work with 

the National Economic Action Council (NEAC) in 1998. After 

his period at the NEAC, he started two venture capital firms, 

Intelligent Capital and iSpring Venture Management Sdn Bhd, 

while continuing to work with KSC. He was previously the 

chairman of the Malaysian Venture Capital Association. 

He holds a Bachelor of Commerce (Honours) from the 

University of Melbourne in Australia and a Masters of Business 

Administration from Cranfield University in the UK. 

He is a member of the Audit, Remuneration and ESOS 

Committees. 

Ghassan Hasbani, aged 39, a British citizen, was appointed 

as a Director of Maxis on 25 September 2009. 

He is the chief executive officer of the International Operations 

group of Saudi Telecom Company (STC). He joined STC from the 

global management consulting firm, Booz & Company, where 

he led the firm’s Middle East Communications and Technology 

practice. He has more than 17 years experience with telecom 

operators in the Middle East, Asia, Europe and Africa. He brings 

a wide spectrum of capabilities covering all aspects of the 

telecommunications industry including investment strategies, 

mergers and acquisitions, post-merger integration, marketing, 

product and service development, organisational restructuring 

and governance, technology plans, retail and distribution, 

channel strategy and management, customer care, business 

development and chief financial officer and chief executive 

officer agendas. He has worked with leading organisations in 

the telecommunication and technology industries, including 

Nortel Networks and Cable & Wireless and spent the past ten 

years operating within the Middle East Region. In addition to the 

Middle East, his global experience also includes markets such 

as Europe, South East Asia, Africa and Latin America. He is the 

President Commissioner of PT AXIS Telekom Indonesia (formerly 

known as PT Natrindo Telepon Seluler) in Indonesia and vice 

chairman of Viva Bahrain BSC (C) in Bahrain. He also serves on 

various boards of directors, including Maxis Communications 

Berhad (the holding company of Maxis), Binariang GSM Sdn 

Bhd, BGSM Capital Sdn Bhd, Kuwait Telecom Company in 

Kuwait, Turk Telecom and OJER TELEKOMÜNİKASYON ANONİM 

ŞİRKETİ in Turkey. 

He holds a Master of Business Administration from Hull 

University in the UK and a Bachelor of Engineering with first 

class honours from the University of Westminster in the UK. He 

is also a Chartered Engineer and a member of the Institution of 

Engineering and Technology in the UK. 

He is a member of the Nomination and Remuneration 

Committees. 

Please refer to Note 7.

MAXIS BERHAD 


27 





Dr Zeyad Thamer H. AlEtaibi, aged 50, a Saudi citizen, was 

appointed as a Director of Maxis on 10 February 2011. 

Dr Zeyad is the STC Group chief technology officer (CTO). In 

his current position, he provides continuous leadership and 

direction to three major STC units being Network Sector, IT 

Sector and the Wholesale Business Unit. In his role as Group 

CTO, Dr Zeyad also provides technology and infrastructure 

guidance to the subsidiaries within the STC Group of companies 

such as Viva Bahrain, Viva Kuwait and AXIS-Indonesia. As Group 

CTO he provides overall strategies, coaching of direct reports, 

setting of aggressive goals and objectives for his various STC 

units. The Group CTO is also a permanent member of STC’s 

General Management Committee. 

Dr Zeyad has more than 20 years experience in the 

telecommunications service provider industry and is proficient 

in all major aspects of a Telecom Service Provider, through 

progressive promotions from Director to General Manager to 

Vice-President Network Sector and finally as STC Group CTO. 

He has expanded and modernised STC’s Network Broadband 

Networks into the largest in the Middle East. 

He serves as a director on various boards of directors, including 

Maxis Communications Berhad (the holding company of Maxis), 

PT AXIS Telekom Indonesia (formerly known as PT Natrindo 

Telepon Seluler) and Viva Bahrain BSC (C) in Bahrain. In addition, 

he is vice-chairman of Viva Kuwait where he also serves as the 

chairman of the Executive Committee and a member of the 

Audit Committee. 

He holds a Bachelor of Science in Engineering in year 1985 

and a Master’s Degree in Engineering in year 1992 from King 

Saud University, Riyadh KSA, and obtained his Doctorate in 

Mobile Communications from the University of Bradford in the 

UK in 1996. He has also completed a variety of management 

programmes from Japan, Project Management Development 

at Harvard University and attended multiple forums and 

International conferences such as ITU, TM-Forum and GSM 

Mobile World. 

Dr Fahad Hussain S. Mushayt, aged 43, a Saudi citizen, was 

appointed as a Director of Maxis on 25 September 2009. 

He is the vice president – Corporate Strategy and head of 

the Strategic Investment Unit at Saudi Telecom Company 

(STC). He joined STC in October 2000 as a senior business 

analyst in corporate planning and has held the positions of 

capital allocation project manager, balanced scorecard project 

manager and concept controlling manager. Before assuming 

his current position at STC in June 2011, he was head of the 

Strategic Investment Unit, the strategic planning director and 

business development director at STC. He has served as a vice 

president of the Telecom Development Advisor Group of the 

International Telecommunications Union. He serves on various 

boards of directors, including Maxis Communications Berhad 

(holding company of Maxis), PT AXIS Telekom Indonesia 

(formerly known as PT Natrindo Telepon Seluler) in Indonesia 

and Telecom Commercial Investment Company, Arabian Internet 

& Communications Services Provider Co. Ltd, Contact Center 

Company and Sale for Distribution and Communication Co. Ltd 

in Saudi Arabia, Aircel Limited, Aircel Cellular Limited and Dishnet 

Wireless Limited in India, Gulf Digital Media Holding BSC (C) and 

STC Bahrain BSC (C) and Gulf Allied Digital Media FZ LLC in Dubai 

and STC Turkey Holding Ltd in the British Virgin Islands. 

He holds a Bachelor of Science degree in Operations Research 

from King Saud University, Riyadh in Saudi Arabia. He holds 

a Master of Science Degree in Economics from California 

State Polytechnic University, Pomona in the USA and obtained 

his Doctorate of Philosophy in Political Economy and Public 

Policy from the University of Southern California Los Angeles 

in the USA. He has also completed a variety of management 

programmes from INSEAD in France, London Business School in 

the UK and Stanford University in the USA. 

He is a member of the Audit Committee. 

Please refer to Note 7.

28 


BOARD OF 

DIRECTORS 

PROFILES 

Continued 





Augustus Ralph Marshall, aged 60, a Malaysian, was 

appointed as a Director of Maxis on 7 August 2009. 

He has more than 30 years of experience in financial and 

general management. He is an executive director of Usaha Tegas 

Sdn Bhd (UTSB), the executive deputy chairman and group 

chief executive officer of Astro Holdings Sdn Bhd group and 

an executive director of Tanjong Public Limited Company, in 

which UTSB has significant interests. He also serves as a nonexecutive 

director on the boards of several other companies 

in which UTSB also has significant interests such as Maxis 

Communications Berhad and Johnston Press plc (listed on the 

London Stock Exchange plc). In addition, he is also a director 

in an independent non-executive capacity and the chairman of 

the Audit Committee of KLCC Property Holdings Berhad (listed 

on the Bursa Malaysia Securities Berhad) and a non-executive 

director of MEASAT Global Berhad. 

He is an Associate of the Institute of Chartered Accountants in 

England and Wales and a member of the Malaysian Institute of 

Certified Public Accountants. 

He is a member of the Remuneration Committee. 

Chan Chee Beng, aged 56, a Malaysian, was appointed as 

a Director of Maxis on 7 August 2009. 

He has more than 30 years experience in investment banking, 

financial management and accounting including stints with 

Ernst & Young and Morgan Grenfell & Co. Ltd prior to joining 

the Usaha Tegas Sdn Bhd (UTSB) Group in 1992 as head of 

corporate finance. He is presently an executive director of UTSB 

and serves on the boards of several other companies in which 

UTSB has significant interests such as Maxis Communications 

Berhad and Binariang GSM Sdn Bhd, having an operational 

base in Malaysia; Bumi Armada Berhad (BAB) (listed on Bursa 

Malaysia Securities Berhad), a Malaysia-based international 

offshore oil field services company serving its clients in over 

10 countries across Asia, Africa and Latin America; Sri Lanka 

Telecom PLC (listed on the Colombo Stock Exchange) and 

Mobitel (Pvt) Ltd, having an operational base in Sri Lanka; and 

Aircel Limited, Aircel Cellular Limited and Dishnet Wireless 

Limited having an operational base in India. He is a director 

of Yu Cai Foundation and also a director in a non-executive 

capacity and a member of the Audit Committee of MEASAT 

Global Berhad and a member of the Audit and Nomination 

Committees of BAB. 

He holds a degree in Economics and Accounting from the 

University of Newcastle-upon-Tyne in the UK and is a Fellow of 

the Institute of Chartered Accountants in England and Wales. 

He is a member of the Audit and Nomination Committees.

MAXIS BERHAD 


29 

Sandip Das 


Sandip Das, aged 54, an Indian citizen, joined Maxis 

Communications Berhad (MCB) group in January 2007 and 

upon listing of Maxis Berhad (Malaysia), was appointed 

as an Executive Director of the Company on 17 September 

2009 and as its Chief Executive Officer on 1 October 2009. 

He is currently also the Chief Executive Officer and Executive 

Director on the Board of Maxis Communications Berhad and 

a Director on the Board of its subsidiaries in India. In addition, 

he serves on the Board of Directors of Sri Lanka Telecom PLC, 

Mobitel (Pvt) Ltd in Sri Lanka and Bridge Mobile Pte Ltd, a 

strategic alliance of regional telecommunication providers. He 

has been listed as one of the 100 most powerful people in the 

telecoms industry worldwide in Global Telecoms Business for 

two years running in the 2011 and 2010 GTB Power100 list. 

In 2011, he was polled as one of the Best CEOs in Malaysia by 

FinanceAsia’s Best Managed Companies country listings. 

He has more than 33 years of work experience in the consumer 

durable, automobile and telecommunications industries. Prior to 

joining the Company, he was Deputy Managing Director and a 

Director on the Board of Hutchison Essar Limited (now known 

as Vodafone Essar Limited, India), one of India’s largest mobile 

operators. He joined Hutchison Essar, then known as Hutchison 

Max Telecom and started that company’s operations in India 

with its paging business in 1994. Before working at Hutchison 

Essar Limited, he spent five years as franchise head of Al 

Futtaim Motors, the Toyota franchise of the Al Futtaim Group, 

in Dubai, UAE, and 10 years with Indian consumer durable 

giant Usha International, Shriram Group, where he started as a 

management trainee and left as joint divisional manager. 

He holds a Masters of Business Administration degree from 

the Faculty of Management Studies, University of Delhi, and a 

Bachelor’s degree in Mechanical Engineering from the Regional 

Engineering College (now the National Institute of Technology), 

Rourkela, India. 

He is a member of the ESOS Committee. 

Please refer to Note 7. 

NOTES: 

1. The total number of Board meetings held during the financial year ended 

31 December 2011 was seven. The number of Board Meetings attended by 

the Directors in the financial year are set out on page 213 of this Annual 

Report. 

2. None of the Directors have any family relationships with any directors and/or 

major shareholders of the Company. 

3. None of the Directors have any conflict of interest with the Company. 

4. None of the Directors have any convictions for offences within the past 

10 years. 

5. None of the Directors have any sanctions and/or penalties imposed on them 

by any regulatory bodies during the financial year ended 31 December 2011. 

6. For information on other directorship of public companies, please refer to 

their respective profiles. 

7. The Directors, Ghassan Hasbani, Dr Fahad Hussain S. Mushayt and Sandip 

Das are standing for re-election as Directors of the Company. The Board has 

considered the assessment of the three Directors and collectively agree that 

they meet the criteria of character, experience, integrity, competence and 

time to effectively discharge their respective roles as Directors, as prescribed 

by Para 2.20A of the MMLR.

30 


ORGANISATION 

STRUCTURE 

Chairman 

Board of Directors 


Sandip Das 

Chief Financial Officer 

Nasution bin Mohamed 

• Management Accounting 

• Financial Accounting 

• Treasury 

• Corporate Finance 

• Investor Relations 

• Legal 

• Procurement 

• Regulatory 

• Administration and Security 


Officer 

Suren J. Amarasekera 

• Sales, Distribution and 

Customer Services 

• Integrated Marketing and 

Customer Management 

• Products, Devices, 

Innovation and Roaming 

• Mobility Products and 

International Serviceses 

• Marketing Strategy 

• Brand 


Officer 

Mark Dioguardi 

• Network 

• Technology 

• Information Technology 

• Enterprise and 

Government Business 

• Home Products 

• Customer Development 

Human Resources 

Azmi bin Ujang 

Internal Audit 

Chow Chee Yan* 

Talent and Organisation 

Development 

Kala Kularajah Sundram 

Corporate Affairs 

Mariam Bevi binti Batcha 

Corporate Strategy 

Ebru Dorman 


Dipak Kaur 

* Reporting to the Audit Committee

MAXIS BERHAD 


31

32 


SENIOR 

MANAGEMENT 

1 

2 

3 

4 

1 Sandip Das 

Chief Executive Officer/ 

Executive Director 

2 Nasution bin Mohamed 


3 Suren J. Amarasekera 

Joint Chief Operating Officer 

4 Mark Dioguardi 


5 Mohamed Fitri bin Abdullah 

Enterprise and 

Government Business 

6 Sophia Lim 

Sales, Distribution and 

Customer Services 

7 Harold Quek 

Home Products 

8 Azmi bin Ujang 


9 Chow Chee Yan 


10 Stephen Mead 


11 Kala Kularajah Sundram 

Talent and Organisation Development 

12 Mariam Bevi binti Batcha 


13 Dipak Kaur 

Company Secretary

MAXIS BERHAD 


33 

5 

6 

7 

8 

9 

10 

11 

12 

13

34 


SENIOR 

MANAGEMENT 

PROFILES 

Sandip Das 


Suren J. Amarasekera 


Sandip Das, aged 54, an Indian citizen, joined Maxis 

Communications Berhad (MCB) group in January 2007 and 

upon listing of Maxis Berhad (Malaysia), was appointed 

as an Executive Director of the Company on 17 September 

2009 and as its Chief Executive Officer on 1 October 2009. 

Sandip Das’ profile is contained in the “Board of Directors” 

section as set out on page 29 of this Annual Report. 

Nasution bin Mohamed 


Nasution joined Maxis in January 2011 and was 

appointed Chief Financial Officer on 15 April 2011. 

He plays a strategic role in understanding the relative 

economics of different parts of the operations, and 

integrating resources across business functions, to 

deliver high performance across Maxis. Concurrently, 

he is responsible for financial reporting, governance 

and compliance, treasury, corporate finance, investor 

relations, legal, procurement, regulatory, administration 

and security. 

Nasution has 18 years of wide business experience in Malaysia 

and overseas. Prior to joining Maxis, Nasution was the 

Managing Director/CEO of Penerbangan Malaysia Berhad (PMB). 

Prior to PMB, he was an Executive Director at UDA Holdings 

Berhad. Nasution started his career with KPMG in Australia and 

subsequently joined the Corporate Finance Division of Amanah 

Merchant Bank Berhad. He then moved on to Pengurusan 

Danaharta Nasional Berhad (Danaharta). Subsequent to 

Danaharta, Nasution joined KPMG Malaysia where he was Head 

of an Audit Department. 

Suren is responsible for the overall consumer mobile 

telephony business that includes postpaid, prepaid and 

broadband product development, product innovation, 

marketing strategy, brand and marketing management, 

sales, distribution, customer service, integrated products, 

Go-To-Market and customer management. He is jointly 

responsible for the operations of the business alongside 

Mark Dioguardi, Joint COO. 

Suren joined Maxis in July 2011. He brings with him over 

20 years of experience in the telecommunications industry. 

In the most recent six years prior to joining Maxis, he was 

the Chief Executive Officer of Mobitel, the mobile arm of 

telecommunications operator Sri Lanka Telecom. During 

his tenure, he reshaped the Mobitel business and made 

it a powerful mobile player in Sri Lanka through a potent 

combination of value-innovation and customer-centricity. 

Prior to assuming his role as the CEO of Mobitel, he had 

acquired over 13 years of experience working for Singapore 

Telecommunications (SingTel) with the initial half in Sri Lanka 

and the latter half at its head office in Singapore. While with 

SingTel, Suren served in various senior management capacities. 

Suren holds a Masters of Business Administration from 

University of Chicago, Booth School of Business, Illinois, USA 

and Master of Science and Bachelor of Science in Computer 

Systems Engineering from Syracuse University, New York, USA. 

Nasution holds a Bachelor of Commerce degree from University 

of New South Wales, Australia and is a member of the Institute 

of Chartered Accountants in Australia (ICAA).

MAXIS BERHAD 


35 

Mark Dioguardi 


Mohamed Fitri bin Abdullah 

Enterprise and Government Business 

Mark is responsible for the Company’s network and 

information technology strategy and operations, the 

development, sales and growth of the SME, Enterprise, 

Government and Home business. He is jointly responsible 

for the operations of the business alongside Suren J. 

Amarasekera, Joint COO. 

Mark was Maxis’ Chief Technology Officer prior to his 

promotion to Joint COO and in that role, led Maxis to be the 

only Integrated Telco in Malaysia with the largest footprint of 

2G, 3G, High-Speed Fibre Broadband, and Satellite Broadband 

capability. 

Mark has over 19 years of telecommunications experience across 

Australia, UK and Asia with companies such as Telstra and O2, 

and prior to joining Maxis in August 2009, he was with Telstra in 

Australia as the Executive Project Director for Ultra High-Speed 

Internet, and also as General Manager of Architecture for Next 

Generation Networks. 

Mark holds a Masters of Business Administration from the 

Melbourne Business School and a Bachelor of Engineering 

(Honours) in Electronic and Electrical Engineering from the 

University of Melbourne, Australia. 

Fitri is responsible for the business segments of 

corporate, government, Small and Medium Enterprise 

(SME) and wholesale, encompassing both fixed and 

mobile products. 

Fitri joined Maxis as Head of Enterprise Business in January 

2006; his role was subsequently enlarged to include Carrier 

Business from January 2009 to October 2011. Fitri has over 

20 years of experience and prior to joining Maxis, he was with 

Hewlett-Packard Malaysia (HP) for over nine years and held 

various roles and positions in the Consulting and Systems 

Integration division. Prior to joining HP, he was a Consulting 

Manager with Ernst & Young. He started his career with BULL 

Worldwide Information Systems, USA as a Principal Software 

Engineer in 1989. 

Fitri holds a Bachelor of Science in Computer Science from 

Indiana State University, USA and a Master of Science in 

Computer Science from Arizona State University, USA. He also 

attended the Advanced Management Program at Harvard 

University, USA in 2011. 

Sophia Lim 

Sales, Distribution and Customer Services 

Sophia is responsible for leading and managing sales, 

operations and services functions through all channels, 

developing new customer touch-points, and raising the 

overall threshold of the Maxis brand of service. 

Sophia joined Maxis in January 2011 with more than 25 years of 

MNC, FMCG and consumer/pharmaceutical experience, coupled 

with in-depth understanding of consumer retail markets across 

Asia. Prior to Maxis, she was with the IDS Group, where she was 

the Country Managing Director for Singapore. Sophia has also 

held senior positions in MNCs, including Boots Healthcare Far 

East, Philips Malaysia, Bausch & Lomb Malaysia, Jordan AS and 

Diethelm Malaysia. 

Sophia holds a Bachelor of Economics degree (Honours) from 

the University of Malaya, Malaysia.

36 


SENIOR 

MANAGEMENT 

PROFILES 

Continued 

Harold Quek 

Home Products 

Chow Chee Yan 


Harold is responsible for leading Home Products to 

develop, market and sell products and services that will 

transform the home environment into a hub from which 

subscribers can experience next generation broadband, 

IPTV and family-oriented voice, data, multi-screen content 

distribution, new media and applications packages. 

Harold joined Maxis in August 2010 and has over 30 years of 

experience in all aspects of the telecommunications industry, 

and has led the launch of fixed, mobile, global managed 

and convergent services for the consumer, enterprise and 

wholesale markets. He has held senior commercial positions 

in “GO” Etihad Atheeb Telecom in Saudi Arabia, “du” 

Emirates Integrated Telecom in the United Arab Emirates, 

StarHub in Singapore, Concert Communications (BT & MCI) 

in the Asia Pacific region as well as Macquarie Telecom and 

Telstra in Australia. 

Harold holds a Master of Business Administration degree and a 

Bachelor of Electronics & Electrical Engineering (Honours) degree 

from the University of Western Australia. 

Chee Yan is responsible for managing the Internal Audit 

functions and the development and execution of the audit 

process from a strategic perspective. 

Chee Yan has over 30 years of experience which includes 13 

years with the Schlumberger Group as International Financial 

Controller in Singapore, Indonesia and the USA. Prior to joining 

Maxis in June 2002, he was the Director of Risk Management 

of MEASAT Broadcast Network Systems Sdn Bhd. He was 

previously with Ernst & Whinney in Singapore from 1981 to 

1982 and Turquands Barton Mayhew in Manchester, UK from 

1977 to 1981. 

Chee Yan holds a Master of Business Administration degree 

from Cranfield Institute of Science and Technology in the UK 

and is a Chartered Accountant (England & Wales). 

Stephen John Mead 


Azmi Bin Ujang 


Azmi was appointed Head of Human Resources in 

February 2002 and is responsible for the overall 

management of human capital, internal communications 

and corporate occupational safety and health. 

Azmi has over 24 years of experience and joined Maxis in 

1992, after having spent seven years at Standard Chartered 

Bank Berhad as a Covenanted Officer/National Officer in 

banking operations and human resources. Prior to this, he 

was a Dealer Representative at stock broking firm Seagrott & 

Campbell for a year. 

Azmi holds a Bachelor of Science degree in Finance and a 

Master of Business Administration degree from Indiana State 

University, USA. He also attended the Advanced Management 

Program at Harvard University, USA. 

Stephen is responsible for managing the legal requirements 

of Maxis which include litigation, developing legal 

strategies, overseeing due diligence activities, corporate 

governance, major financings and supervision of our inhouse 

legal function. 

Stephen has over 21 years of experience and prior to joining 

Maxis in June 2009, he was with Mallesons Stephen Jaques 

(MSJ), a leading legal firm in Australia, where he was a mergers 

and acquisitions partner. He has extensive general commercial 

legal experience, having acted for clients in a wide variety 

of legal issues. While at MSJ, he was seconded to Telstra 

Corporation Limited in Australia where he held several positions 

including that of Deputy General Counsel and Competition 

Counsel. 

Stephen holds a LLB (Honours) qualification from the 

Queensland University of Technology in Australia.

MAXIS BERHAD 


37 

Kala Kularajah Sundram 

Talent and Organisation Development 

Dipak Kaur 


Kala is responsible for driving talent management, 

leadership development and effective organisation 

development. 

Kala joined Maxis in August 2010, bringing over 19 years of 

experience with her. She spent 14 years with Hay Group, where 

her last position was Regional Director of Reward Practice 

Business for Asia Pacific Africa. As part of this role, she also 

served in the Regional Leadership Team. Prior to joining the Hay 

Group, Kala worked for the Kuala Lumpur Stock Exchange (now 

known as Bursa Malaysia). 

Kala holds a Master of Business Administration (Summa Cum 

Laude) degree from Boston University, USA, a CPA from the 

Australian Society of CPAs, and a Bachelor of Economics 

(Accounting) degree from Monash University, Australia. 

Mariam Bevi binti Batcha 


Mariam joined Maxis in September 2010. She is 

responsible for the overall planning and implementation 

of corporate communications activities, providing 

strategic Public Relations (PR) counsel to the senior 

management team, formulating communication policies 

and procedures, as well as developing and driving 

sustainable corporate responsibility activities. 

Dipa joined Maxis in 2001 and was appointed as Company 

Secretary in August 2009. Dipa provides corporate 

secretarial support to Maxis and her duties as Company 

Secretary includes, among other things supporting 

the Board by ensuring adherence to Board policies 

and procedures, facilitating compliance with statutory 

obligations, monitoring and ensuring that the Group’s 

governance framework complies with the Malaysian 

Code of Corporate Governance, Main Market Listing 

Requirements and other relevant laws and regulations. 

Dipa has over 20 years’ experience and prior to 2001, she spent 

six years at DMIB Berhad as company secretary/legal advisor and 

two years at Arab Malaysian Corporation Berhad. 

Dipa earned her Bachelor of Laws degree from the University 

of Leicester, UK and a Masters in Law from the University of 

Malaya. She also obtained a Certificate of Legal Practice from 

the Legal Profession Qualifying Board, a Certified Diploma in 

Accounting and Finance from the Association of Chartered 

Certified Accountants and is a Graduate ICSA from the 

Malaysian Institute of Chartered Secretaries and Administrators. 

She was admitted to the High Court of Malaya as an Advocate 

and Solicitor in 1993. 

Mariam has over 20 years of experience gained from a 

number of positions with listed companies in Malaysia. She 

was previously from Telekom Malaysia Berhad where she 

was Vice President, Group Corporate Communications, 

with key responsibilities in providing strategic PR counsel 

to the management team and the overall planning and 

implementation of corporate communications and corporate 

responsibility activities. Prior to that, she served as the Head 

of Group Corporate Communications and Investor Relations 

in Amanah Capital Partners Berhad, and later as the General 

Manager of Group Corporate Communications in United 

Engineers (Malaysia) Berhad/UEM World Berhad. 

Mariam holds a Bachelor of Business in Business Administration 

degree with Distinction from RMIT University in Melbourne, 

Australia and a Diploma in Public Relations from the Institute of 

Public Relations Malaysia (IPRM).

38 

ROAM FAR. STRESS FREE 

Ther 

ere’ 

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s noth 

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the 

sou 

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of a fami 

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hen 

yo 

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Our 

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onal 

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and da 

ta 

net 

wo 

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you 

are 

nev 

ever 

er 

far 

fro 

rom 

home 

or wo 

rk 

. Wi 

th tou 

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like compli 

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to our 

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tome 

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rvic 

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rom anyw 

ywhe 

re in the 

worl 

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eel at hom 

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hen you roam 

am. 

NETWORK HOME ROAMING 

MOBILE INTERNET

MAXIS BERHAD 


39 


LIFE SERVICES 

CLOUD 

DISTRIBUTION

40 


PERFORMANCE 

AT A GLANCE 

Revenue 

RM8.8 b 

39.0% revenue share (1) in 2011 

Comparable revenue (excluding international hubbing business) grew by 2.1% yoy 

Mobile revenues grew by RM167 million to RM8.4 billion primarily driven by increase in 

non-voice revenues 

Enterprise Fixed revenues increased by 7.7% or RM13 million to RM181 million 

Revenue in International Gateway segment decreased by 61.5% or RM249 million to 

RM156 million due to rationalisation of the hubbing business via scale-down of lowmargin 

routes 

New revenue streams added (Home services, Cloud, M2M, Managed Services, 

U Mobile network sharing); however with limited revenue impact in 2011 

Non-Voice (2) 

43.5% OF 

MOBILE 

REVENUE 

Non-voice revenues grew by 16.7% yoy to RM3.7 billion. Non-voice as % of mobile 

revenue went up by 5.4% points to 43.5% 

Growth in non-voice driven by mobile internet, wireless broadband, content services 

and outright device sales. SMS revenues remained largely stable. Internet and data 

services (non-SMS) now contribute 59.2% of non-voice revenue for the year 

Robust Wireless Broadband revenue growth of 41.5% yoy to RM501 million 

myLaunchpad ranked as the 2nd most visited local site in Malaysia as of 

December 2011 

Subscriptions (3) 

14.0 m 

Continued leadership in both postpaid and prepaid subscriptions and ARPU (Average 

Revenue Per User) 

14.0 million subscriptions as of December 2011 of which 12.7 million were revenue 

generating subscriptions (3) 

Wireless Broadband revenue generating postpaid subscriptions at 668 thousand; with 

ARPU largely stable despite price pressures in the market (3) 

Mobile internet users hit 7.5 million in Q4 to achieve data penetration of 62%. Over five 

million 3G handset users in our base. Smartphones used by 31% of base of which 11% 

use super smartphones (iPhone, BlackBerry, Android and Windows Mobile phones) 

EBITDA 

RM4.4 b 

EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) increased by 

RM7 million to RM4.4 billion 

42.5% EBITDA market share (1) 

EBITDA margin increased by 0.5% to 50.3%, among the highest globally 

Margin improvement achieved on the back of cost management discipline and 

rationalisation of the hubbing business

MAXIS BERHAD 


41 

PAT 

RM2.5 b 

Outstanding PAT (Profit After Tax) margin of 28.8% 

Recognition of last-mile broadband tax incentive of RM352 million (comprising RM223 

million in respect of prior years and RM129 million for 2011) resulted in the 10.3% yoy 

growth in PAT to RM2,531 million 

CAPEX 

RM1.0 b 

Network expansion and modernisation continued to provide the best mobile internet 

and wireless broadband experience. Fastest and largest 3G HSPA (High Speed Packet 

Access) network with 81% coverage as at 31 December 2011 

> 5,000 HSPA sites, of which 1,100 sites upgraded to support speeds of up to 42Mbps 

High Speed Broadband Agreement with Telekom Malaysia Berhad contributed to lower 

Capex spend compared to last year’s RM1.4 billion 

Landmark agreement with U Mobile for active 3G radio access network sharing which 

will bring forward return on investment for Capex 

LTE readiness - trials completed; detailed business plan submitted to regulators for 

LTE spectrum 

Data Centre and Cloud Computing launched 

Free Cash Flow 

RM2.2 b 

Net debt to EBITDA ratio at 1.24x 

Net debt to Equity ratio at 0.68x 

Closing cash balance of RM838 million 

Dividends 

RM3.0 b 

Dividends of RM3.0 billion declared/proposed for 2011 

Payout ratio of 118.7% 

Dividend per share of 40 sen. Dividend yield of 7.3% on RM5.48 (2011 closing price) 

NOTES: 

(1) Among top three operators in Malaysia based 

on published results. 

(2) Non-voice revenues include SMS, ADS, Wireless 

Broadband, VAS and outright device sales. 

(3) Prepaid Wireless Broadband subscriptions are 

not included in the reported subscription base.

42 


FINANCIAL 

HIGHLIGHTS 

The five-year financial highlights, segmental analysis and operating performance indicators set out on pages 42 to 48 are prepared 

on the assumption that the business combination comprising the acquisitions of the Malaysian businesses by the Company from 

its immediate holding company which took place on 1 October 2009 had been effected on 1 January 2007. This is to provide a 

meaningful comparison of the financial and operational performance of the Group between the reported periods. 

FINANCIAL RESULTS 

2010-2011 

YOY 

2011 2010 2009 change 

Financial Indicators (RM’m) 

Revenue 8,800 8,869 8,611 (0.8%) 

Comparable revenue (1) 8,644 8,464 8,192 2.1% 

EBITDA 4,423 4,416 4,337 0.2% 

Profit from operations 3,232 3,343 3,055 (3) (3.3%) 

PBT 3,004 3,132 3,007 (3) (4.1%) 

PAT 2,531 2,295 2,232 (3) 10.3% 

Profit attributable to equity holders of the Company 2,527 2,295 2,232 (3) 10.1% 

Financial Ratios 

EBITDA margin (%) 50.3% 49.8% 50.4% 

PBT margin (%) 34.1% 35.3% 34.9% 

PAT margin (%) 28.8% 25.9% 25.9% 

Interest cover ratio 12.1 13.9 39.7 

Earnings per share (sen) 

- basic 33.7 30.6 29.8 

- fully diluted 33.7 na na 

Dividends per share (sen) (2) 40.0 40.0 15.0 

FINANCIAL POSITIONS 

Financial Indicators (RM’m) 

Equity attributable to equity holders of the Company 8,084 8,667 8,945 

Total assets 17,991 18,225 17,798 

Total borrowings 6,331 5,497 5,067 

Financial Ratios 

Return on Invested Capital (%) 20.5% 19.2% na 

Return on Average Equity (%) 30.2% 26.1% na 

Return on Average Assets (%) 15.4% 14.0% na 

Gearing ratio 0.68 0.53 0.43 

Net assets per share (RM) 1.08 1.16 1.19 

NOTES: 

(1) Excluding International Gateway services segment. 

(2) Dividends per share consists of interim and final 

dividends declared and proposed in respect of the 

designated financial years. 

(3) Includes one time costs of RM103 million 

comprising (i) the discount for shares issued to 

retail investors in relation to Maxis Listing of RM53 

million and (ii) Maxis Listing and related expenses 

of RM50 million.

MAXIS BERHAD 


43 

Revenue 

RM’m 

EBITDA and EBITDA margin 

RM’m 

10,000 

46.7% 

5,000 

52.1% 50.4% 49.8% 50.3% 

8,000 

6,000 

7,690 

8,450 

8,611 

8,869 

8,800 

4,000 

3,000 

3,590 

4,402 

4,337 

4,416 

4,423 

4,000 

2,000 

2,000 

1,000 

07 08 09 10 11 

07 (1) 08 09 10 11 

Profit attributable to equity 

holders of the Company 

RM’m 

Basic Earnings per share 

Sen 

3,000 

35 

STEADY 

FINANCIAL 

PERFORMANCE 

AND STRONG 

SHAREHOLDER 

RETURNS 

2,500 

2,000 

1,500 

1,000 

500 

1,980 

2,400 

2,232 

2,295 

2,527 

07 (1) 08 09 (2) 10 11 

30 

25 

20 

15 

10 

5 

26.4 

32.0 

29.8 

30.6 

33.7 

07 (1) 08 09 (2) 10 11 

NOTES: 

(1) Includes a one-off Equivalent Cash 

Consideration charge of RM505 million, 

being options settlement cost arising from 

the privatisation and delisting of Maxis 

Communications Berhad. 

(2) Includes one-time costs of RM103 million 


retail investors in relation to the Maxis Listing 

of RM53 million and (ii) the Maxis Listing and 

related expenses of RM50 million.

44 


VALUE ADDED 

STATEMENT 

2011 2010 

RM’m RM’m 

VALUE DISTRIBUTED 

VALUE ADDED 

26.3% 

7.8% 

Revenue 8,800 8,869 

Direct and operating expenses (3,193) (3,394) 

Other operating income 54 70 

22.4% 

19.0% 

2011 

43.5% 

7.0% 

Total Value Added 5,661 5,545 

Reconciliation: 

Profit for the year 2,527 2,295 

Add : Depreciation and amortisation 1,149 1,050 

Finance costs 268 240 

Staff costs 443 389 

Government 1,270 1,571 

Non-controlling interest 4 - 

Total value added 5,661 5,545 

VALUE DISTRIBUTED 

2010 

45.7% 

28.3% 

Employees 

Staff costs 443 389 

Government 

Corporate tax 473 837 

Service tax 222 201 

USP contributions 437 409 

Regulatory fees 138 124 

Employees 

Government 

Providers of capital 

Reinvestment and 

future growth 

Providers of capital 

Dividends (1) 2,189 2,295 

Finance costs 268 240 

Non-controlling interest 4 - 

Reinvestment and future growth 

Depreciation and amortisation 1,149 1,050 

Retained earnings 338 - 

Total Distributed 5,661 5,545 

NOTE: 

(1) The dividends for 2010 and 2011 were RM3.0 

billion each year. The amounts disclosed above 

represent dividends that were declared and paid 

in those years. Such dividends were declared 

first out of current year profits and then 

retained profits brought forward and/or merger 

relief reserve if the current year profits were 

insufficient.

MAXIS BERHAD 


45 


QUARTERLY 

FINANCIAL 

PERFORMANCE 

2011 

First Second Third Fourth Year 

Quarter Quarter Quarter Quarter 2011 

2011 FINANCIAL PERFORMANCE 

RM’m 

Revenue 2,133 2,158 2,244 2,265 8,800 

EBITDA 1,090 1,106 1,123 1,104 4,423 

Profit from operations 805 818 814 795 3,232 

PBT 741 757 746 760 3,004 

PAT 540 552 538 901 2,531 

Profit attributable to equity holders 

of the Company 539 551 537 900 2,527 

Earnings per share - basic (sen) 7.2 7.3 7.2 12.0 33.7 

Dividends per share (sen) 8.0 8.0 8.0 16.0 40.0 

2010 FINANCIAL PERFORMANCE 

RM’m 

2010 

First Second Third Fourth Year 

Quarter Quarter Quarter Quarter 2010 

Revenue 2,152 2,191 2,216 2,310 8,869 

EBITDA 1,082 1,028 1,138 1,168 4,416 

Profit from operations 815 775 866 887 3,343 

PBT 765 720 815 832 3,132 

PAT 552 532 601 610 2,295 

Profit attributable to equity holders 

of the Company 552 532 601 610 2,295 

Earnings per share - basic (sen) 7.4 7.1 8.0 8.1 30.6 

Dividends per share (sen) 8.0 8.0 8.0 16.0 40.0

46 


SUMMARISED STATEMENT 

OF FINANCIAL POSITION 

0.1% 0.1% 

0.7% 0.7% 

4.7% 4.9% 

4.8% 5.1% 

0.6% 1.2% 

27.6% 

27.5% 

TOTAL ASSETS 

2011 

2010 

2011 2010 

RM’m RM’m 

4,971 5,007 

11,060 11,019 

110 214 

858 936 

838 898 

134 137 

20 14 

17,991 18,225 

61.5% 60.5% 

Property, plant and equipment 

Intangible assets 

Inventories 

Receivables, deposits and prepayments 

Cash and cash equivalents 

Deferred tax assets and tax recoverable 

Other assets 

1.0% 1.3% 

2.0% 1.9% 

4.2% 4.1% 

32.8% 28.0% 

TOTAL EQUITY 

AND LIABILITIES 

2011 

2010 

40.8% 43.4% 

4.0% 

2011 2010 

RM’m RM’m 

3.1% 

16.1% 17.3% 

750 750 

7,334 7,917 

2,889 3,152 

557 720 

5,909 5,107 

366 348 

186 231 

17,991 18,225 

Share capital 

Reserves 

Payables and accruals 

Taxation and deferred tax liabilities 

Borrowings 

Derivative financial liabilities 

Other liabilities and non-controlling interest

MAXIS BERHAD 


47 


SEGMENTAL 

ANALYSIS 

2010 2009 

2011 restated restated 

RM’m RM’m RM’m 

SEGMENT REVENUE (1) 

Mobile services 8,446 8,279 8,005 

Enterprise fixed services (2) 181 168 168 

International gateway services 156 405 419 

Home services (2) 17 17 19 

Other operations - - - 

Total 8,800 8,869 8,611 

SEGMENT RESULTS (3) 

Mobile services 3,235 3,282 3,070 (4) 

Enterprise fixed services (2) 25 35 23 

International gateway services 22 9 28 

Home services (2) (57) 13 - 

Other operations 7 4 (66) (4) 

Total 3,232 3,343 3,055 (4) 

NOTES: 

(1) Definition of each segment is detailed on pages 

65 to 75 in the Segments, Products and Services 

section of the Annual Report. 

(2) Prior to 2011,”Home services” was reported 

together with “Enterprise fixed services” under 

the “Fixed services” segment. The comparative 

segment revenue and results prior to year 2011 

have been restated to conform with segment 

reporting in 2011. 

(3) Segment results represent profit before interest 

and taxation. 

(4) Includes one-time costs of RM103 million 


retail investors in relation to Maxis Listing of 

RM53 million and (ii) Maxis Listing and related 

expenses of RM50 million.

48 


OPERATING 

PERFORMANCE 

INDICATORS 

MOBILE PERFORMANCE INDICATORS 

2011 new 2011 old 2010 old 2009 old 

definition (1) definition definition definition 

Number of mobile subscriptions (‘000) 

Postpaid 2,638 2,676 2,673 2,711 

Prepaid 9,429 10,602 10,687 9,316 

Wireless Broadband (2) 668 712 594 264 

Total 12,735 13,990 13,954 12,291 

2011 new 2010 old 2009 old 

definition (1) definition definition 

Monthly ARPU (RM) (1) 

Postpaid 108 104 104 

Prepaid 36 36 41 

Wireless Broadband 63 68 97 

Blended 52 50 56 

(1) (3) 

Average monthly MOU per subscription (minutes) 

Postpaid 350 357 372 

Prepaid 139 124 117 

Blended 183 172 175 

CAPITAL EXPENDITURE 

2010-2011 

YOY 

2011 2010 2009 change 

Total capital expenditure (RM’m) 

Telecommunications network 903 1,289 1,133 (29.9%) 

Others 112 155 110 (27.7%) 

Total 1,015 1,444 1,243 (29.7%) 

NOTES: 

(1) With effect from 1 January 2011, in parallel 

to the old definition, Maxis adopted a stricter 

definition of subscriptions for reporting purposes 

that is more reflective of the revenue generating 

base. The definitions of mobile subscriptions for 

Postpaid, Prepaid and Wireless Broadband are 

now as follows: 

- Postpaid and Wireless Broadband: subscriptions 

on the register excluding subscriptions that have 

been barred for more than 50 days 

- Prepaid: subscriptions on the register excluding 

subscriptions that do not have any revenue 

contribution for more than 50 days. 

Accordingly, the numbers of mobile 

subscriptions, monthly ARPU and average 

monthly MOU per subscription for the year 

2011 have been computed based on the new 

definitions. 

(2) Defined as customers who have subscribed to 

data plans via a modem. 

(3) Average monthly MOU per subscription excludes 

roaming partner minutes but includes free 

minutes effective June 2007.

MAXIS BERHAD 


49 


FINANCIAL 

CALENDAR 

31 May 2011 

Announcement of the unaudited 

consolidated results for the first quarter 

and three months ended 31 March 2011. 

Announcement of the first interim 

single-tier tax-exempt dividend of 8.0 sen 

per ordinary share in respect of the 

financial year ended 31 December 2011. 

15 June 2011 

Entitlement date for the first interim 


per ordinary share for the financial year 

ended 31 December 2011. 

22 June 2011 

Entitlement date for the final single-tier 

tax-exempt dividend of 8.0 sen per 

ordinary share for the financial year 


30 June 2011 

Payment date for the first interim 




6 July 2011 

Payment of final single-tier tax-exempt 

dividend of 8.0 sen per ordinary share in 

respect of the financial year ended 

31 December 2010. 



consolidated results for the second quarter 

and six months ended 30 June 2011. 

Announcement of the second interim 





Entitlement date for the second interim 





Payment date for the second interim 






consolidated results for the third 

quarter and nine months ended 

30 September 2011. 

Announcement of the third interim 





Entitlement date for the third interim 

single-tier tax-exempt dividend 

of 8.0 sen per ordinary share for the 



Payment date for the third interim 






consolidated results for the fourth 

quarter and for the financial year 


Announcement of the fourth interim 


per ordinary share and proposed final 

single-tier tax-exempt dividend of 

8.0 sen per ordinary share in respect of the 


15 March 2012 

Entitlement date for the fourth interim 




30 March 2012 

Payment date for the fourth interim 




2 May 2012 

Notice of Annual General Meeting 

and issuance of Annual Report for the 


31 May 2012 

Third Annual General Meeting.

50 


CHAIRMAN’S 

STATEMENT 

DEAR SHAREHOLDERS, 

I AM PLEASED TO REPORT 

THAT MAXIS HAD ANOTHER 

SUCCESSFUL YEAR IN 

2011. WE TURNED IN 

A STEADY FINANCIAL 

PERFORMANCE AND MADE 

SIGNIFICANT STRIDES 

TOWARDS BECOMING THE 

LEADING INTEGRATED 

COMMUNICATIONS SERVICE 

PROVIDER IN MALAYSIA.

MAXIS BERHAD 


51 

Importantly, we took major steps to increase customer 

satisfaction, create new innovative services and revenue 

streams to ensure our long-term growth and success. This 

would not have been possible without the ability and 

dedication of our people and I would like to thank every 

member of the staff for their contributions and commitment ment 

in what has been a very challenging year. 

Steady Financial Performance and Dividends 

Maxis’ principal business is providing telecommunications 

services. In the year under review, its main activities were 

in providing mobile, enterprise fixed, international gateway 

and home services. 

Our total revenue for the year stood at RM8.8 billion with 

comparable revenue (excluding international gateway 

services) growing 2.1% year-on-year. Maxis delivered 

an outstanding EBITDA margin at 50.3%, among the 

highest globally; while maintaining leadership position 

with 39.0% revenue market share among the top three 

mobile operators in Malaysia. Profit for the year was RM2.5 

billion, including recognition of the RM352 million last-mile 

broadband tax incentive. 



Chairman 

The Board of Directors is pleased to recommend for 

shareholders’ approval at the forthcoming Annual 

General Meeting a single-tier tax-exempt final dividend of 

8.0 sen per share in respect of the financial year ended 

31 December 2011. The four interim dividends paid and the 

recommended final dividend will bring the total dividend 

for 2011 to 40.0 sen per share. If approved, the Company 

would have declared and delivered a total of 95.0 sen per 

share in cumulative dividends since the IPO, amounting to a 

net payout of RM7.1 billion to shareholders. 

The Company has proposed to adopt a dividend policy 

that seeks to pay out no less than 75% of consolidated 

net profit for each financial year provided such distribution 

would not be detrimental to its cash needs. Notwithstanding 

this, the payout ratios for 2010 and 2011 were 131% 

and 119% respectively. The Company will continue to 

adopt a progressive dividend policy through active capital 

management.

52 


CHAIRMAN’S 

STATEMENT 

Continued 

“Maxis Customer Service staff went the 

extra mile by treating my problems as if 

they were theirs.” 

Goh Hwee Leng 

Maxis customer 

Enriching People’s Lives Everyday 

I believe our success and leadership position have been achieved by our firm focus 

on putting the needs of our customers at the heart of all our business decisions. This 

is reflected in the theme of this year’s Annual Report: Leading the way in enriching 

people’s lives everyday. We are leveraging on our high-performance wireless and fixed 

network to deliver a seamless set of services across a wide range of platforms to help 

our customers and our people improve the way they do business and the way they live. 

Maxis has taken the business of communications to a new and much more engaging level 

by extending and deepening the communications experience for all our users. We did 

this by employing leading-edge technology; we did this by becoming much more nimble 

in our response to the customer. But most importantly we made it a point to understand 

our customers’ frame of reference and feelings. Essentially our people were trained to 

listen with ears, eyes and heart. The Board felt that both customers and staff needed to 

be affirmed, validated and appreciated if we were to deliver on our brand promise of 

enriching people’s lives everyday. We made a deliberate and concerted effort to make 

every transactional opportunity a transformational experience for our customers. 

Last year our focus continued to be on expanding the range of broadband-based 

services to generate new revenue streams and drive shareholder value. The growing 

appetite for end-to-end communications offers a significant growth opportunity for 

Maxis. The launch of Maxis Home and Maxis Cloud was an important step towards 

providing customers with integrated services and greater flexibility. 

Maxis Home was 

launched by Dato’ 

Joseph Salang, Deputy 

Minister of Information 

Communication and 

Culture (middle); Sandip 

Das (right) and Jean- 

Pascal van Overbeke, 

then Maxis Chief 

Operating Officer (left). 

Supporting Malaysia’s Economic Transformation Agenda 

High-speed broadband has a direct impact on Malaysia’s long-term economic 

competitiveness and future growth. We have been working closely with the 

Government to create a fully networked society by expanding our network coverage, 

increasing our network speed and improving broadband access and affordability. 

The Government aims to increase broadband penetration to 75% of the population by 

2015. We are delighted to be able to help turn this aspiration to reality, by providing 

a best-in-class communications infrastructure to provide connectivity and internet 

access for personal and business use across Peninsular Malaysia, Sabah and Sarawak. 

Our agreement with MEASAT Broadband (International) Ltd, signed late last year, 

will improve connectivity to all parts of the country, particularly for underserved 

communities in remote areas. 

Our 3G coverage is now the widest in Malaysia, reaching out to more than 81% of 

the population. In 2011, we upgraded our core transmission network to 100Gbps. 

This means that our users now get the best of fixed and mobile internet with higher 

network efficiency, speed and protection. We have also been aggressively modernising 

and upgrading our core, transmission and radio network.

MAXIS BERHAD 


53 

We see education as one of the building blocks of excellence and a more competitive 

economy and have partnered with the Ministry of Education and the Malaysian 

Communications and Multimedia Commission in a number of initiatives to bridge the 

digital divide and nurture a spirit of innovation and technopreneurship among young 

Malaysians. In 2011, we embarked on a partnership with the Ministry of Education to 

provide secondary schools with free access to our flagship online education service. 

The long-term objective of this initiative is to develop a society that is technologically 

literate, dynamic and innovative. 

Making a Positive Impact 

The Board is committed to upholding and implementing the highest standards of 

corporate governance and international best practices throughout the length and 

breadth of our business. Details of our corporate governance initiatives and the internal 

control policies we employ are detailed in the relevant sections of this Annual Report. 

As an integrated communications service provider, we are in the unique position 

of having the means to enrich every aspect of people’s lives. It is of paramount 

importance to us that we operate responsibly and with a clear focus on making 

a positive impact on the economy, society and the environment. Corporate 

Responsibility (CR) is therefore a vital part of good governance at Maxis and 

linked closely to our main business objectives. 

I am happy to report that in 2011, we undertook a thorough re-evaluation of our CR 

approach and priorities. We developed a CR framework which provides a clear direction 

and ensures that all CR efforts are aligned with the overall strategy and mission to 

create value for all our stakeholders and the nation. We produced our first Sustainability 

Report which reflects our CR strategy and framework based on three pillars: Developing 

and Enriching Lives – Community, Customers, Partners; Creating a Great Place to Work; 

and Advocating Environmentally Friendly Practices. 

WE HAVE THE 

WIDEST 3G 

NETWORK IN 

MALAYSIA, 

WITH OVER 81% 

POPULATION 

COVERAGE 

Maxis Corporate Responsibility 

initiatives include providing 

ICT training to underserved 

communities in Kg Chennah, 

Negeri Sembilan. (L to R) 

The previous Chairman of 

SKMM, Y Bhg Tan Sri Khalid 

Ramli; Secretary General of 

the Ministry of Information 

Communication and Culture, 

Y Bhg Datuk Wira Kamaruddin 

Siaraf; Maxis Chairman, YM 


bin Raja Tun Uda; and Minister 

of Information Communication 

and Culture, YB Dato’ Seri 

Utama Dr Rais Yatim graced 

the event.

54 


CHAIRMAN’S 

STATEMENT 

Continued 

A Passion for Excellence 

One of our key principles is to stay ahead of the curve by embedding excellence in 

everything we do, particularly every system that our business is built on. It is not 

enough to be the first to launch a HSDPA network. It’s about making sure that we 

are the first to do it well so that we deliver a superior customer experience and add 

value that exceeds expectations. We have developed a corporate culture that demands 

quality in every aspect of our service. An important part of this is creating a workplace 

environment that supports and promotes a spirit of achievement and success. 

This dedication to excellence is evident in our strong performance and the recognition 

we have achieved. In 2011, Maxis was declared Mobile Service Provider of the Year at 

the Frost & Sullivan Malaysia Excellence Awards. We also won several other prestigious 

awards including Best Postpaid Telco and Best CSR Award at the PC.com Awards, the 

Brand of the Year Award in the Putra Brand Awards and the Global Telecoms Business 

Innovation Award. 

Well-Positioned for the Future 

The Malaysian telecommunications industry has become extremely competitive and 

challenging with an increase in new players and more aggressive pricing. At the same 

time, telecommunications, internet and media industries are converging rapidly, 

resulting in an increased demand for data services that are new and innovative and can 

be accessed on a variety of devices. 

Maxis signed on seven 

sports ambassadors who 

have achieved excellence 

in their game. 

Despite these challenges, we see exciting new opportunities for Maxis. We are wellpositioned 

for strong and sustainable growth with a best-in-class high-speed network, 

a deep knowledge of our customers, a strong management team, talented and 

innovative people and a sound financial foundation. We plan to continue generating 

value by bundling wireless and fixed line connectivity with compelling services to grow 

our revenues. 

Maxis business partners 

are an integral part of our 

success. We feted dealers at 

a Chinese New Year dinner 

in appreciation of their 

contributions.

MAXIS BERHAD 


55 

Collaboration is becoming increasingly important in the fast-moving world of 

telecommunications and we have forged partnerships on several fronts to enhance 

efficiency and market reach. In October 2011, we entered into a landmark multi-billion 

ringgit agreement with U Mobile for “active sharing” of our 3G Radio Access Network 

(RAN), the first partnership of its kind in Malaysia. 

Looking ahead, we will continue to leverage our unique capabilities to enhance growth 

and profitability. We plan to invest prudently in strengthening and modernising our 

networks while building on the extensive passive infrastructure sharing that we have 

already begun. 

Acknowledgements 

On behalf of the Board of Directors, may I take this opportunity to thank all those who 

have contributed to the Company’s progress and performance. 

We are grateful to our shareholders and customers for their trust and confidence. 

Our business partners have been an integral part of our success and we thank them for 

their cooperation and support. 

We also deeply appreciate the opportunity to work with the Ministry of Information 

Communication and Culture, the Ministry of Education and the Malaysian 

Communications and Multimedia Commission in building a vibrant telecommunications 

and multimedia environment in Malaysia. 

LOOKING 

AHEAD, WE 

WILL CONTINUE 

TO LEVERAGE 

OUR UNIQUE 

CAPABILITIES 

TO ENHANCE 

GROWTH AND 

PROFITABILITY 

Once again, I would like to commend the management and staff of Maxis for their 

professionalism, enthusiasm and unwavering commitment to the success of the 

Company. 

I would also like to thank my fellow Directors for their valuable inputs and wise counsel 

throughout the year. 


Chairman 

Maxis and U Mobile 

partnered on active sharing 

of Maxis 3G Radio Access 

Network (RAN). Present at 

the partnership ceremony 

were (L to R) Mark 

Dioguardi, Maxis Joint Chief 

Operating Officer; Sandip 

Das, Maxis Chief Executive 

Officer; Dr Kaizad Heerjee, 

U Mobile Chief Executive 

Officer; and Too Tian Jen, 

U Mobile CTO.

56 


CEO’S 

STATEMENT 

DEAR SHAREHOLDERS, 

MALAYSIA STANDS AT THE CUSP OF THE 

TELECOM INDUSTRY’S TRANSITION FROM 

VOICE TO DATA. THE DEMAND FOR DATA AND 

BROADBAND HAS GATHERED CONSIDERABLE 

MOMENTUM AND AS A COMPANY WE ARE 

PLEASED TO BE AT THE LEADING EDGE OF THIS 

TRANSFORMATION. 

Globally, the change that the telecom world is seeing was unimaginable even a few 

years ago. High-speed networks are proliferating, mobile terminal devices are getting 

richer in features and form at a startling pace and the world is progressively getting 

consumed by social networking. More people are surfing the internet, downloading 

movies, uploading videos, making online purchases and watching television on their 

laptops and mobile devices. Telecom operators are being constantly challenged to 

optimise returns on their traditional voice businesses, while having to prudently invest 

in data networks, the scale of demand for which will far exceed what we have ever 

seen. The consumer today enjoys a wide choice of operators, products, devices and the 

lead-time between generational changes has become astoundingly short. As a result, 

consumers no longer marvel at the joys of technology, but now make a conscious 

demand for what they want and when they want it. 

In Malaysia this change is palpable, stirred by a growing population of technologysavvy 

youth, the need for wireless broadband access in rural communities and a 

nation’s determination to fast-track economic development. 

At Maxis, we are excited about these opportunities. Two years ago, in anticipation of 

these trends, we took a strategic view to transform ourselves from being a pure-play 

mobile operator to an integrated communications service provider. We pursued this 

vision relentlessly, identifying our customers’ growing needs, modernising our data 

networks, forming critical alliances and partnerships, bringing to our customer a wide 

range of smart devices, applications and enriched content, reskilling ourselves and 

restructuring the organisation. 

Sandip Das 


In 2011, we stepped up our wireless broadband business, commercialised our Home 

broadband business on the back of a historic tie-up with Telekom Malaysia to access 

its High Speed Broadband (HSBB) backbone, completed building Malaysia’s largest 

high-speed wireless network, struck a ground-breaking active RAN sharing partnership 

for 3G and LTE networks with U Mobile and launched Managed Machine-to-Machine 

(M2M), Cloud Computing and Data Centre Services.

MAXIS BERHAD 


57

58 


CEO’S 

STATEMENT 

Continued 

Intensive Competition in a Maturing Market 

In 2011, the operating environment in mobile voice business was fiercely competitive 

with an increasing number of players in a highly-penetrated voice market. Malaysia’s 

penetration levels are now over 128% of the population which underlines the shift 

to multiple SIM use. The incremental number of new users came from the youth, 

travellers, under-penetrated rural communities and a sizeable migrant worker 

segment. The high-volume acquisition schemes have therefore revolved around 

attracting existing subscribers, leading to tariff wars and an increase in churn. In the 

area of wireless broadband (WBB), consumer offerings were broadly similar among 

operators and subscriber additions were a reflection of the size of data network 

footprints. 

Overall mobile revenue growth for the top three listed operators stood at 5.4% driven 

largely by mobile internet and device revenues. Subscription growth in the mobile 

market was at 8.3% versus 12% the year before. It is estimated that “subscriber” 

penetration i.e. unique customers in a multi-SIM market, is around 80%. As of end of 

2011, across Malaysia, 81% of the subscriptions was on prepaid. 

The nation achieved its target of 50% penetration on broadband as a whole, although 

the wireless broadband market growth was lower than expected at 32.5% for the year 

versus 89.2% in 2010. In 2009 and 2010, due to inadequacies in the performance 

of ADSL offerings in the market, wireless broadband was taken up as a substitute for 

fixed internet. However in 2011 with the introduction of higher-grade fixed broadband 

and the success of mobile internet comparatively, the market witnessed a slower 

uptake for WBB dongles. 

Sustaining Profitability in the Mobile Market 

Sandip Das briefing the media 

on the Company’s financial 

results. Maxis kept a firm grip on 

profitability during the year. 

In 2011, Maxis had a steady year despite severe competition. The Company’s 

performance was particularly strong in the areas of non-voice businesses, network 

performance and customer service. The Company intensified operational efficiencies 

and with its customary financial discipline achieved the following results: 

• Turnover of RM8.8 billion 

• Mobile revenue share of 39.0% overall; 46.1% for postpaid, 35.0% for prepaid 

and 34.8% for WBB. Non-voice revenue market share of 43.1% 

• 14.0 million subscriptions of which 12.7 million were revenue generating 

subscriptions (RGS) 

• EBITDA of RM4.4 billion at 50.3% margin. EBITDA market share of 42.5% 

• As of Q4 2011, highest blended mobile ARPU in the market at RM54 per month 

per subscription

MAXIS BERHAD 


59 

“Our customers are our barometers for service and product 

excellence. We constantly work towards giving them the 

best value through innovative collaboration. Naturally, we 

are building a greater presence in Cyberspace, where our 

core customer base spends a lot of time.” 

T Kugan 

Head of Products, Devices, Innovation and Roaming 

On a comparable basis (i.e. excluding the international gateway services) our revenues 

grew by 2.1% year on year. Growth was driven by mobile internet, wireless broadband 

and device sales, more than compensating for a regulatory reduction in interconnect 

revenue, yielding a net revenue increase of RM167 million for the mobile business. 

Our non-voice revenues as a percentage of mobile revenues were at 43.5% in 

2011 versus 38.1% in 2010, among the highest recorded by operators in Asia. 

This came on the back of strong smartphone penetration in our base, superior 

network experience and a wide suite of innovative mobile content and applications 

from Maxis as well as our content ecosystem partners. As of December 2011, our 

base of smartphone users grew to 3.7 million of which over a third use “super 

smartphones”, i.e. iPhone, BlackBerry, Android or Windows Mobile phones. As we 

exited the year, non-voice revenues reached 45.3% of mobile revenues. 

Following our decision to rationalise our hubbing business by cutting back on lowmargin 

routes, we have scaled down this business significantly from RM405 million 

revenue in 2010 to RM156 million in 2011 with an improved EBITDA margin from 

5.3% to 11.5% for the international gateway services. As a result, our reported 

total revenues were RM8.8 billion for the year, a reduction of RM69 million or 0.8% 

compared to last year. 

During the year, two significant regulatory policy changes took place – reduction 

in Singapore roaming rates and in domestic interconnect rates – which inevitably 

impacted Maxis the most, being the largest operator. Normalising these factors 

our annual revenue growth rate on a comparable basis would have been 3.5%. 

In terms of our subscription numbers, in parallel to the existing reporting, we 

introduced a stricter subscription definition to move away from inflated numbers 

reported in the market given the “use and throw” nature of a significant portion of 

the prepaid “SIM business”. We now define customers using the networks actively as 

revenue generating subscriptions, which demonstrates a better measure that reflects 

real active customers. We are now reporting both the gross numbers based on industry 

practice and the RGS figures which are used internally. 

NATION’S 

PREMIER 

INTEGRATED 

COMMUNICATIONS 

SERVICE 

PROVIDER 

Our EBITDA margin increased by 0.5% point to 50.3%, which is one of the highest in 

the industry globally, through cost management discipline and rationalisation of our 

hubbing business by scaling down of low-margin routes. 

Profit After Tax was at RM2,531 million compared to RM2,295 million in the preceding 

year – a 10.3% increase – as a result of the recognition of tax credits of RM352 million 

arising from the investment allowance under the last-mile broadband tax incentive 

granted by the Ministry of Finance.

60 


CEO’S 

STATEMENT 

Continued 

“Despite their size, Maxis remains personal 

through their helpful and dedicated 

relationship managers. We never feel lost, 

and our voice is always heard.” 

Dato’ Frieda Pilus 

Founding Principal, 

Cempaka International Ladies College 

Strategic Achievements and Directions for Value Creation 

Our mission to become the nation’s premier integrated communications service 

provider is underpinned by a transformation from a voice-centric business model to one 

that extends into data access leadership and new revenue streams beyond telecoms, 

supported by a customer-centric mindset and innovation culture. 

We put customers first and at the heart of everything we do. In March 2011, Maxis 

received the prestigious Putra Brand Award for “Brand of the Year” across all 

categories based on consumer preference. We are delighted with this clear affirmation 

of our customers’ trust in us. 

WE PUT 

CUSTOMERS 

FIRST AND AT 

THE HEART OF 

EVERYTHING 

WE DO 

During the year, Maxis was again recognised as having the best customer service 

team across all industries in Malaysia by the Customer Relationship Management 

and Contact Centre Association of Malaysia (CCAM) by winning Gold Award in the 

top categories including the biggest and most coveted award - the Best In-house 

Inbound Contact Centre above 100 seats. This marks the second consecutive year that 

Maxis has won this award. Maxis also received Gold Awards in other top categories 

such as Best In-House Outbound Contact Centre below 100 seats (Sales), Best CRM 

Programme, Best Social Media Programme in Contact Centre and the Prestige Award 

for Corporate Social Responsibility (CSR). 

Our capacity for innovation is one of our strongest differentiators. It has enabled 

us to stay ahead of the game. We continued to be first-to-market with several new 

applications and services. Among the most important of these was the first Managed 

Machine-to-Machine (M2M) platform in Malaysia. Since launch, we have won new 

deals from various business customers as part of solutions in payphone management, 

ATM connectivity management, location-based services and fleet management. 

Our 3G Fixed Wireless Broadband product for the Home segment, launched in 

October, was another first-to-market and has been very well received. This product 

will be one of our key growth-drivers in the broadband market, especially for over 

three million households that do not have access to fixed line and can get home 

broadband only through wireless technology. We also made good progress in 

preparation for the introduction of our multi-screen IPTV service which will come to 

market mid 2012. This is a very exciting development which will bring interactive 

Video On Demand (VOD) services and more to Malaysia. 

Maxis was conferred the 

prestigious “Brand of the 

Year” award at the Putra Brand 

Awards, being selected based on 

consumer preference. 

In view of the growing digitisation of content and need for storage and our strategy 

to provide our customers from various segments with multiple services from Maxis, 

we launched our Data Centre in January and our Cloud Computing services in August 

initially targeting the business segment. 

We also launched new “life services” including E-Kelas and Health Portal which are the 

foundation of our efforts in the education and health space, the two critical sectors for 

NKEA and our beyond telecom strategy.

MAXIS BERHAD 


61 

“We are able to continuously provide 

and roll out leading edge high speed 

broadband infrastructure that enables 

Malaysians to receive the full benefits 

of next generation services. Quality and 

good customer experiences are core to 

our network design and services.” 

Yap Chee Sun 

Head of Network 

As of December 2011, myLaunchpad, our internet portal targeted at the youth 

segment, had 2.2 million unique browsers and ranked as the 2nd most visited local 

website, up from 6th place in December 2010. This places our portal among the top 

10 most visited websites including international sites in Malaysia. myLaunchpad has a 

number of content and application verticals including Entertainment, Games, Sports, 

Finance and News. It is an important platform for the delivery of our multi-screen 

content strategy across mobile, PC and TV. 

In addition to market-facing innovation, we continue to innovate our systems and 

the way we operate internally. One such example is our world-class geomarketing 

capability that provides customer analytics at street level and enables targeted 

investments in our network and distribution channels. We continuously improve our 

IT and Customer Relationship Management (CRM) systems for greater impact with 

micro-segmentation, real-time billing and experience-based data pricing. 

Recognition for our commitment to innovation was reflected in Maxis being awarded 

the prestigious Global Telecoms Business (GTB) Innovation Award in November. Maxis 

was the only Malaysian company to be recognised at the awards. 

Network Infrastructure Ready for Medium-Term Internet and 

Data Demand 

In 2009, we embarked on a plan to modernise and augment our nationwide network 

particularly for high-speed data. Maxis has built a high-performance data network, 

rated by independent agencies as the best broadband network in Malaysia. In 2011 

our capex spend was at RM1.02 billion supporting RM1.44 billion invested in 2010 

and RM1.24 billion in 2009. As a result, we are now ready to roll out 4G-LTE services. 

Our 5,146 HSPA sites are now serving over 81% of the population with high-speed 3G 

network coverage, while our 2G network covers 95% of the population. Consequently, 

our capex investment 2012 onwards will not be required at the scale incurred over the 

last three years. 

Agreements with Telekom Malaysia Berhad and Tenaga Nasional Berhad which were 

signed in 2010, have been instrumental in expanding our fixed and wireless high-speed 

broadband footprint to meet the growing demand for data and broadband services 

across the country while rationalising our capex spend. 

Future consumer demands for data, geographical coverage and licence obligations will 

call for further investment in data networks, which will affect returns as ecosystems 

will take time to scale up. Sharing of networks between operators is essential to 

optimise resources, improve speed-to-market and expedite return on investment. 

Maxis demonstrated a long-term view on this philosophy during the year by entering 

into an active RAN sharing agreement with U Mobile for 3G and LTE, paving the way 

for cooperation between operators and taking infrastructure sharing to a whole new 

level beyond the passive sharing arrangements currently practised by operators in the 

industry. Our agreement also encompasses LTE sharing which will deliver even greater 

benefits to customers. We expect infrastructure sharing to continue at the industry 

level as networks approach low-yielding rural geographies and as we embark on a 

multi-player LTE journey.

62 


CEO’S 

STATEMENT 

Continued 

Our People 

People have been at the core of Maxis’ strength as an organisation. A performanceoriented 

work culture, an amalgamation of varied skills, high-quality work standards, 

strong international Human Resources (HR) best practices and governance have made 

it one of the most preferred work destinations in the country. In turn it has been a 

nursery for strong managerial talent built over the years. Maxis is a consummate mix of 

home-grown talent and a combination of local and international senior talent, which 

make it a globally contemporary telco. 

During the year, we strengthened our induction scheme for new recruits and our 

management trainee programme for talented graduates. We continue to invest in 

the Maxis Academy which has been the backbone for the training and development 

of our entire employee base and consolidate the Leadership Development Engine 

programme which covers over 200 high-performance managers. We also capped the 

year by sending our top executives to Harvard and Stanford Advanced Management 

Programmes and investing in leadership succession planning. 

Azmi Ujang, Maxis Head of 

Human Resources accepted Asia’s 

Best Employer Brand Award on 

behalf of the Company. 

On 1 November 2011, Maxis reorganised its management team to support the 

Company’s concerted effort since November 2009 to transform itself from being a 

mobile player to becoming Malaysia’s premier integrated communications player. We 

have introduced a Joint Chief Operating Officer structure, with one Joint COO leading 

our core mobile business and the other building our new businesses, to make Maxis 

more agile and focused in delivering its range of services with an integrated and 

unified view of the customers. 

For the second year in succession, in recognition of creating a culture of innovation at 

work and in the HR industry, we received Asia’s Best Employer Award at the second 

Asia’s Best Employer Awards. 

Corporate Responsibility in Our DNA 

Maxis was founded as an organisation with its business mission enshrined in service 

to the nation and its people. Over the years, it has worked hard at harmonising the 

enormous impact of the telecommunication industry in helping to bridge the digital 

divide. Cyberkids, our flagship community programme providing ICT training to more 

than 8,500 students and teachers in over 1,500 schools is now entering its 10th year. 

We continue to provide scholarships for education at leading international universities 

to a vast section of the community across our postpaid customers and our employees. 

We have spent RM16 million over the last two decades on this effort. 

Maxis has also initiated a content developer programme, the Maxis Mobile Content 

Challenge, to encourage home-grown creative talent and help them take ideas to 

commercial launch. The programme has successfully generated over 450 new ideas.

MAXIS BERHAD 


63 

The Company has focused on resource efficiency and carbon management, 

achieving a 13.7% improvement in the energy efficiency of our operations and 

avoiding four tonnes of CO 2 

emission. We also planted over 7,000 Mahang 

seedlings at a one-for-one ratio for every base transmission station as part of our 

efforts to reduce our carbon footprint. 

Last year, we undertook an exercise in Uplifting Maxis Corporate Responsibility (CR) 

Practices where we assessed our CR practices, defined a high-level CR strategy and 

formalised the reporting of our CR performance. We now have a framework and 

governance structure that aligns our CR practices to create value and impact in 

the environment in which we operate. We view our role in its entirety end-to-end, 

covering aspects that go beyond just social contributions to encompass our practices 

in the marketplace, workplace, community and the environment. Our CR pledge is to 

make a “Positive Impact”. As an organisation and market leader, we are committed 

to harnessing the power of telecommunications technology to address the needs of 

society and enrich lives. We are already making a positive impact on so many lives 

through our services. 

Positive Outlook 

The current outlook for the Malaysian economy remains steady despite uncertainties in 

the global markets. The overall demand for telecommunications services is expected to 

remain strong. 

The future growth of the industry is underpinned by the ever-growing demand for 

advanced data and broadband services, particularly among the Malaysian youth 

with their pronounced appetite for social networking, content and applications and 

the growing “need” to be always connected: on-the-go, at home and at work. 

Smartphone penetration in Malaysia is already at 23% as at end of 2011 and will 

continue to increase driven by technology-savvy Gen Y consumers and declining 

smartphone prices. Simultaneously, as the digital divide is being rapidly bridged, 

new subscriptions will emerge from underserved geographies and segments. 

In terms of key risks for the industry, mobile operators across the world are considering 

the ramifications arising from non-traditional players. Already in some western markets, 

social messaging and over-the-top voice over IP and instant messaging applications are 

starting to cause shifts in communication patterns resulting in some cannibalisation of 

SMS, IDD and roaming revenues. So far we have seen limited impact, if any, of social 

messaging on usage levels. While SMS messaging could slow down over time, mobile 

internet remains one of the key revenue growth drivers for the industry and should 

compensate for the decline in traditional revenues. 

Maxis’ Corporate Responsibility 

programmes aim to make a 

positive impact. At the Hari 

Raya Open House, Maxis hosted 

underprivileged children and 

senior citizens and presented 

contributions to needy homes. 

We expect the operating environment to remain competitive with sustained pressure 

on revenue growth and profitability. As Maxis, we will continue to focus on innovative 

product offerings, integrated propositions, delivering a superior customer experience as 

well as driving operational efficiency and network utilisation.

64 


CEO’S 

STATEMENT 

Continued 

“We would like to thank Maxis Customer 

Service staff for their efforts and patience. 

Special thanks to Faizal Yunos for his 

outstanding service, promptly following 

up on and resolving our issues. He did his 

best to serve us, with excellence.” 

Aleya Razak 


Acknowledgements 

Our customers are central to our being and we have close to 14 million relationships. 

We thank our customers for their trust, their continued support and for inspiring us 

to innovate and improve our standards. We are committed to helping them realise 

their dreams. 

The Maxis team has worked relentlessly to keep the Company at the cutting-edge 

of our industry and helped us meet our customers’ expectations. Their ability and 

diligence is reflected in our continued market leadership. Industry awards and 

international recognition bear testimony to the proficiency of the team. I am privileged 

to lead them and thank them for their dedication, resilience and the quality they bring 

to their work. 

The Maxis family is not complete without our dealers and distributors whom I would 

like to thank in particular for their strong belief in the Company. Many of them have 

been steadfast in their support for years and have helped build our equity across 

Malaysia. Their close partnership, intimate knowledge of the consumer and hard work 

at the market place are the building blocks of Maxis leadership. 

OUR 

CUSTOMERS 

ARE CENTRAL 

TO OUR BEING 

AND WE HAVE 

CLOSE TO 

14 MILLION 

RELATIONSHIPS 

I would like to thank SRG Asia Pacific for their contribution over the last 10 years, 

complementing our customer service and tele-channel architecture so efficiently in 

doing sales and service for our Hotlink and Wireless Broadband customers. I wish to 

also acknowledge the partnership we enjoy with our contractors, content developers 

and support agencies. 

We recognise the immense value that strategic partnerships have brought to our 

business. We would like to acknowledge the pivotal role that Telekom Malaysia Berhad 

and Tenaga Nasional Berhad have played in helping us create a vibrant broadband 

market. We would also like to welcome U Mobile as a valued partner. 

We wish to express our sincere appreciation for the continued support, guidance and 

encouragement from the Ministry of Information Communication and Culture of 

Malaysia and the Malaysian Communications and Multimedia Commission. 

On behalf of Maxis, I thank Jean-Pascal Van Overbeke for his contributions to the 

Company as Chief Operating Officer and wish him well in his new appointment as 

COO of Maxis Communications Berhad. I would also like to take this opportunity to 

welcome on board Suren J. Amarasekera and Mark Dioguardi as Joint COO and other 

executives who joined the team in 2011. 

I am grateful to my fellow Board members for their guidance and support at all times 

through the year. I would like to thank in particular, our Chairman Tan Sri Raja Arshad 

Uda who spent an enormous amount of time close to our organisation through a 

challenging year and continuously offered us wise counsel. 

Sandip Das 

Chief Executive Officer

MAXIS BERHAD 


65 


SEGMENTS, PRODUCTS 

AND SERVICES 

Voice 

Broadband access 

Messaging 

Mobile Internet 

International Roaming 

Wireless Broadband 

MOBILE 

HOME 

Fibre Broadband 

Fixed Wireless Broadband 

ADSL 

Voice 

VAS and ADS 

Wholesale 

Content and 

Applications 

Incoming IDD 

Voice 

INTERNATIONAL GATEWAY 

Outgoing IDD 

Data 

Hubbing/Transit 

Wholesale Bandwidth 

ENTERPRISE FIXED 

Broadband 

Data Centre 

Managed Services 

Cloud Computing 

As an integrated communications service 

provider, Maxis offers a wide range 

of services, from fixed and wireless 

voice, data and broadband services 

to interactive life services. Customers 

are able to enjoy the services offered 

over a wide range of devices including 

mobile phones, tablets, data-centric 

devices, wired and wireless modems and 

personal computers. Working through 

partnerships with premier content 

providers and aggregators, Maxis is 

able to provide a customised slew of 

innovative products and services suited 

for workplace, home and lifestyle needs. 

By combining the Company’s mobile 

network, fixed access across Telekom 

Malaysia Berhad and Tenaga Nasional 

Berhad infrastructure as well as Maxis’ 

own targeted FTTH deployment, 

we have now created the nation’s 

most comprehensive integrated 

telecommunication footprint. This allows 

for the delivery of seamless value-added 

services to customers irrespective of their 

location – in their home, workplace or 

when they are on-the-go. 

Maxis products and services are 

categorised under four segments: 

Mobile, Enterprise Fixed, International 

Gateway and Home.

66 



AND SERVICES 

Continued 

MOBILE SERVICES 

Maxis’ wide range of mobile services 

includes voice (both domestic and 

international), SMS, voice mail, 

multimedia messaging, itemised billing 

and advanced data services such as 

music downloads, games, sports, caller 

ring-tones and various other content 

and applications. 

Data services are delivered via 

mobile devices, tablets and wireless 

broadband dongles. 

Maxis is Malaysia’s largest international 

roaming service provider for voice and 

data with over 530 mobile operators 

in more than 190 countries. Roaming 

agreements with operators in other 

countries enable both postpaid and 

prepaid mobile customers to connect and 

roam when they are on-the-go. Maxis 

offers preferential data rates to countries 

covered by the Bridge Alliance via its 

“Bridge DataRoam Unlimited” package. 

In addition to the core mobile service 

mentioned above, Maxis also offers a 

number of value-added services (VAS), 

advanced data services (ADS) and business 

solutions. A select list of these services 

can be found on pages 70 to 73 of this 

section. 

Maxis had another first-to-market in 

January 2011 with the launch of the first 

Managed Machine-to-Machine (M2M) 

platform in Malaysia, which allows 

customers to manage remote terminals 

and systems over a wireless connection in 

a more controlled manner. 

Postpaid Mobile 

Maxis’ postpaid service was launched in 

August 1995 and is marketed under the 

Maxis brand name. Customers are charged 

a monthly fee depending on the rate plan 

chosen upon subscription. Additional fees 

are charged once the monthly fee usage 

amount is exceeded or for services which 

are not included in the respective rate plan. 

Customers are generally not bound to 

any minimum subscription period unless 

it is part of a promotional marketing 

programme which may include reduced 

fees for an initial period or if the contract 

involves subsidised or free devices. 

To cater for the diverse needs of 

customers, several different plans are 

offered: 

Value Plus Plans – A range of flexible 

monthly commitment-based plans. The 

committed value can be used for the core 

mobile services comprising voice, SMS, 

MMS, International Direct Dial (IDD) and 

International Roaming. Customers can 

enhance their experience by purchasing 

additional value-added services and 

advanced data services. 

Value Plus Family – A range of flexible 

monthly commitment-based plans for 

users linked to a Value Plus plan. The 

committed amount can be used for the 

core mobile services. “Linked” Value Plus 

and Value Plus Family users also get to 

enjoy a generous predefined bundle of 

free voice, SMS and video calls for use 

among members. 

Value Extras – Value Plus users can 

purchase additional voice and/or SMS 

mini-packages to extend and enhance 

the value of their existing plan. 

Internet Value Plans – A monthly 

mobile plan that is geared towards 

internet mobile users. This plan offers 

the flexibility of pay-per-use on voice and 

SMS services while enjoying worry-free 

internet surfing from smartphones on 

data bundles of up to 1.5GB. 

Value Plus Internet Plans – An 

enhanced variant of the Value Plus Plans 

in which an attractive mobile internet 

quota is pre-bundled with the plans. 

Mobile Internet Packages – Standard 

and Value Plus users can have access 

to the internet via their mobile phones. 

They can either use the pay-per-use 

option or choose from a wide range of 

mobile internet packages. Hourly, daily 

and monthly passes are available with 

predefined usage limits. Customers can 

also opt for dedicated Facebook passes. 

Wireless Broadband Packages – 

Customers can choose from a wide 

range of attractive Wireless Broadband 

plans supported by Maxis’ superior 3G/ 

HSPA network while they are on-the-go. 

The HSPA modem comes bundled with 

the plans. There is also a range of plans 

tailor-made for data-centric tablets. 

International Roaming Packages – 

Maxis offers a number of international 

voice and data roaming packages to 

make roaming more affordable. The 

Roam *120* and Easy Call Back services 

allow customers to call back to Malaysia 

from over 25 countries at a significant 

discount to standard roaming rates. With 

the increasing popularity of smartphones, 

Maxis also offers very reasonably priced 

day-based passes for unlimited data usage 

with 16 major mobile operators globally.

MAXIS BERHAD 


67 

Device Related Plans – We offer a 

number of attractive customised plans 

to complement the smartphones sold by 

Maxis including iPhone and BlackBerry. 

Such plans require customers to sign a 

contract for a specified period of time. 

Prepaid Mobile 

Launched in October 1999, this service is 

sold under the Hotlink brand name and 

requires the customers to pay in advance 

before the service is activated with the 

option for top-up. This service provides 

customers the freedom, without having 

to sign-up to a contract, to subscribe to 

monthly billing services and the ability 

to control their spending. Customers 

can increase their credit line by topping 

up at an authorised outlet and via many 

alternative cash and non-cash-based 

channels. 

Hotlink offers a suite of basic voice, 

value-added services and advanced data 

services similar to those available to 

postpaid mobile customers. Some of the 

plans enjoyed are as follows: 

Hotlink Starter Pack – This is a standard 

plan with competitive rates. Customers 

can enjoy many features such as voice, 

data, video, IDD services and additional 

benefits by signing up for other services 

that are available. 

Hotlink Top-Ups – Customers have the 

option for top-up at any time within 

the relevant applicable validity period. 

Top-up options are detailed on page 

81 in the Customers First section of the 

Annual Report. Hotlink top-up is also 

available overseas at Bridge Alliance 

Partners’ outlets. 

Activ10 – When customers sign up for 

Activ10, they get to enjoy preferential 

calling and SMS rates to their preassigned 

10 favourite Maxis and Hotlink 

numbers. Customers can register for 

Activ10 easily via Hotlink’s Easy Menu by 

dialing *100#. 

Hot Ticket – This is one of the new and 

innovative ways in which customers can 

top-up their Hotlink account. Hot Tickets 

are available at authorised outlets. A Hot 

Ticket consists of a bundle of our core 

mobile services that could offer better 

value than our standard Hotlink plan and 

each Hot Ticket has associated bonuses, 

rewards and real world promotional 

activities. There are many types of Hot 

Tickets and they are designed to appeal 

to specific segments. Promotional 

activities can be seasonal. 

Prepaid Data Pass – Like our postpaid 

customers, Hotlink subscribers can 

access the mobile internet on their 

devices and choose daily or weekly 

passes tailored for our smartphone 

users. Customers can also opt for 

dedicated Facebook passes. BlackBerry 

users can choose from our range of 

prepaid BlackBerry BIS plans. 

Wireless Broadband – We offer a wide 

range of attractive prepaid broadband 

starter packs for laptop and tablet 

users. Additionally, customers can take 

advantage of the Internet Hot Ticket for 

casual usage of broadband. 

International Roaming – Our prepaid 

customers can roam internationally 

in 190 countries. Like our postpaid 

customers, they can roam and call 

directly to selected countries from the 

address book on their device without 

any setting changes. To enjoy better 

savings, they can use our Roam *120* 

feature which provides significantly 

better rates. Since April 2011 our 

prepaid customers have been given data 

services while roaming in 150 countries. 

Roaming data charges are charged on a 

pay-per-use basis. 

International Direct Dial (IDD) – In 

addition to the standard premium 

prepaid IDD service, customers can also 

opt to use our IDD 132 service which 

offers budget IDD calling. They can also 

purchase our Hot Ticket and IDD Super 

Savers that feature specially priced IDD 

calling to specific destinations. These 

IDD Hot Ticket consist of IDD minutes, 

IDD SMS, i-share (international airtime 

transfer), news and content from 

selected home countries. 

“At Maxis, we are constantly evolving 

the solutions that cater to our 

customers. This has translated into 

integrated bundles; building on Maxis 

product portfolio as well as extending 

our relationships.” 

Tan Lay Han 

Head of Integrated Marketing 

and Customer Management

68 

NEVER MISS A BEAT 

Or 

sho 

how. 

Or game. Or song. Or stat 

us upd 

ate. 

This is the 

on 

-dem 

eman 

and, 

on-the-cusp generation. And we are there with 

se 

rv 

ices 

suc 

h as Battle of the Sexes, mPlanet, 

musicun 

unli 

mite 

ted, 

ga 

me 

sunl 

imited 

. Su 

rf, tweet, t, blog, 

share 

on the coun 

untr 

try’ 

s fast 

stes 

est 

mo 

bile 

int 

nter 

net. 

Ins 

nstant 

ly. In the mom 

oment. 

In the know 

ow. The fun 

neve 

ver stop 

ops and the possibilit 

ities, 

end 

ndle 

less 

ss. 


MOBILE INTERNET

MAXIS BERHAD 


69 


LIFE SERVICES 

CLOUD 

DISTRIBUTION

70 



AND SERVICES 

Continued 

Value-Added Services (VAS) 

Below is a select listing of value-added 

services that Maxis customers can enjoy: 

• Call Forwarding 

• Call Waiting 

• 3-Way Calling 

• Call Barring 

• Missed Call Notification 

• Enhanced Voicemail 

• Dynamic Voicemail 

• Call Me Back 

• Voice Portal 

• Voice Portal – Celebrity Chat 

• Video Call 

• Push-to-talk 

• Ask Maxis 

• Bulk SMS 

• Bulk MMS 

• Missed SMS Notification 

• Message Plus 

• Flash SMS 

• Voice SMS 

• International Roaming for 

voice and data 

• International Direct Dial (IDD) 

• Caller Line Identification (CLIP) 

• Caller Line Restriction (CLIR) 

• Multi-SIM 1 Line 

• Multi-Line 1 SIM 

• Activ10 

• Notify Me (MAA) 

• Maxis WAP Portal 

• Easy Access 

• EasyMenu (*100#) 

• Fax and Data 

• Itemised Billing 

• Extended Warranty 

Advanced Data Services 

Maxis 1Store 

Maxis 1Store is the first Malaysian 

application store that enables Maxis and 

Hotlink customers to select and purchase 

applications for their feature phones as 

well as Android, Blackberry and Symbian 

smartphones. Customers can access 

Maxis 1Store and choose applications 

ranging from lifestyle and utilities to 

games. This initiative also enables 

international and local developers to 

access the Maxis subscription base of 

14 million and provides tools to assist 

them in developing applications. 

Infotainment Services 

myLaunchpad – Maxis’ infotainment 

portal that offers content through 

focused channels featuring news, movies, 

sports, games, property, education and 

dedicated Malay and Chinese lifestylebased 

news. Currently the 2nd most 

visited site based on rankings by Effective 

Measures, it receives traffic of 2.2 million 

unique visitors per month. 

Music – Maxis offers many ways for 

customers to enjoy music on their 

mobile device. The users’ interaction 

with their devices can be enhanced with 

Caller Ringtone, Background Music and 

Ringtones. Customers can also enjoy 

full music tracks on their devices by 

purchasing individual tracks from us or 

by subscribing to our OneMusic service. 

These services can be purchased or 

subscribed to via our Music Unlimited 

portal – www.musicunlimited.com.my 

TV and Video – On 3G phones, Maxis 

currently offers customers the ability to 

subscribe to television and video content 

from popular sources like BBC World, 

Bloomberg, CNN, Discovery, Disney, TV3, 

TV9, Stadium ASTRO Mobile and other 

popular ASTRO channels. 

Multi-Device Video Service – 

This service enables customers to access 

multiple channels via their mobile and 

Android tablet devices. With 18 different 

channels, this subscription-based service 

enables customers to stream videos 

without any data charges and has a 

community of 400,000 users. 

Games – Via the games portals 

www.mplanet.com.my and 

www.gamesunlimited.com.my, the Maxis 

gamers community now comprises 2 

million Malaysians. Maxis has expanded 

the games proposition beyond mobile 

into online games and social networking 

games. Maxis was also voted the Most 

Favourite Mobile Game Provider in 2011 

by GameAxis magazine. 

Downloads – Maxis and its partners 

offer a number of downloads such as 

wallpapers, themes, operator logos and 

applications for mobile devices. 

Business, Sports and Entertainment 

News – Maxis customers can 

subscribe to business, sports and 

entertainment news via SMS or MMS 

for instant delivery from major local and 

international news providers, including 

Reuters, Bloomberg, The Edge, The Star, 

The New Straits Time, Nanyang Siang 

Pau, Bernama and Berita Harian. 

MMS Content – Through our partners, 

customers can also subscribe to a full 

range of lifestyle-based content delivered 

via MMS directly to their mobile devices, 

e.g., Chinese horoscope, greetings, funny 

jokes, dating tips, recipes, etc. 

Lifestyle Content – Through our 

partners, our customers have access to 

lifestyle-based content on their mobile 

phones. These include Her Maxis, Men 

Matters, Traffic Check, etc.

MAXIS BERHAD 


71 

“A cost control regime that works on a 

‘cost-to-serve’ basis enables us to offer 

value-for-money product offerings and 

be responsive to market needs.” 

Lai Choon Foong 

Head of Mobility Finance, Procurement 

and Enterprise Risk Management 

Social Networking – Maxis and its 

partners host a number of virtual 

communities where our customers 

can interact and have fun with other 

members based on their interests. One 

of the largest communities is Battle of 

the Sexes (BOTS) where there are over 

2 million Malaysian members. In 2011, 

BOTS received global recognition when 

it was selected as Finalist for Best Social 

Media Service in the UK-based Meffys 

mobile content awards 2011 and as 

Finalist for Best Content Service at the 

World Communication Awards 2011. 

Other communities of note are Maxis 

Connect, Friend Finder, FB2Mobile, 

mLife and mTwitter. 

FINDER301 – The first localised SMSbased 

directory service in Malaysia, 

FINDER301 enables Maxis customers to 

send a request to a short code to find 

restaurants, ATMs, clinics, police stations, 

Maxis service centres, etc. around them. 

The service has over 2.2 million users. 

Maxis Movies – With Maxis Movies, 

customers can read movie reviews, 

watch trailers, view show times and 

book and pay for movie tickets across all 

major cinema chains on their personal 

computers or mobile phones. The Maxis 

Movies application is also the most 

popular downloaded Maxis application in 

the App Store. 

Advertising Services 

Maxis offers a variety of targeted mobile 

and online advertising opportunities 

on the properties we own that enable 

brands, advertising agencies and 

marketers the opportunity to reach 

our subscription base of 14 million 

for marketing campaigns and brand 

building activities. 

Text Alert Advertisements – Our text 

alert advertisements are unobtrusive 

as they are appended to missed call 

alerts that our customers receive and 

read. These advertisements can also 

be interactive with a link to access the 

advertisers’ product or service website, 

call a number or even undertake an 

interactive questionnaire session. 

WEB and WAP Display Banners – The 

Maxis WAP portal is visited by over 1 

million unique browsers per month 

and myLaunchpad by over 2.2 million 

unique browsers per month. These 

portals provide an avenue to reach a 

wide audience and are good for brandbuilding 

activities. 

myDeals – This is a mobile advertising 

platform that provides users with upto-the-minute 

brand and product news, 

offers and promotions. Maxis has over 

4.7 million customers who have opted 

for the service while over 30 brands 

including BMW, Nestlé and MAS have 

come on board. 

Education Services 

Maxis and the Ministry of Education 

formed a smart partnership to provide 

a free online education service to 2,300 

secondary schools across the country. 

Through this partnership, Maxis will 

provide free access to its flagship 

education service, eKelas, by leveraging 

readily available school ICT infrastructure. 

This supplementary online learning 

service enriches the learning experience 

for students by encouraging different 

learning styles. 

Financial Services 

Maxis financial services enable our 

customers to perform financial 

transactions wherever they are. 

Maxis M-money – M-money is an 

electronic wallet with a maximum stored 

value of RM1,500. Customers can 

transfer in cash at Maxis-owned retail 

stores and selected e-Pay outlets by using 

MEPS (Malaysian Electronic Payment 

System) and also online via MEPS FPX 

and HSBC bank. Customers can cash-out 

from M-money at Maxis-owned retail 

stores and directly back to their preregistered 

bank account. 

M-money can be used to perform 

Hotlink prepaid top-ups, pay Maxis 

postpaid bills, make purchases at 

participating merchants, transfer 

money to family and friends and 

perform international remittances. 

Maxis International Remittance – 

With M-money, all Maxis customers 

can perform international remittances 

directly to Globe GCash subscribers in the 

Philippines, to any registered users in five 

major banks in Indonesia and also to any 

recipients globally through the Western 

Union network in a pilot initiative. 

i-Share – Hotlink prepaid customers 

can send mobile prepaid airtime credits 

to subscribers on a number of mobile 

networks in nine countries by debiting 

their own Hotlink airtime credits. 

Maxis-PayPal – Through our 

collaboration with PayPal, Maxis and 

Hotlink customers can now use their 

Maxis-PayPal accounts to make purchases 

online and on their mobile and also pay 

their Maxis postpaid bills. 

Maxis Insurance – Sachet-sized personal 

accident, travel and device insurance 

can be bought by customers to cover 

any unforeseen circumstances whenever 

the need arises as fulfilment via SMS is 

extremely easy and convenient.

72 



AND SERVICES 

Continued 

Maxis FastTap – Maxis FastTap makes 

face-to-face payment a breeze at over 

30 retail merchants including Touch n’ 

Go touchpoints and at Maybank Visa 

payWave merchants. Maxis FastTap 

employs near field communication 

technology (NFC) in conjunction with 

established systems and technologies 

to allow financial transactions to be 

performed by simply tapping suitably 

enabled devices together. 

Security Services 

Maxis Secure offers a suite of security 

services for mobile devices and PCs 

that includes data protection to mobile 

surveillance services. 

Antitheft – Antitheft can lock, wipe 

and track the customer’s mobile device 

remotely over the internet or via SMS in 

case of loss or theft. 

Complete Phone Backup – Complete 

Phone Backup safeguards mobile phone 

data, including Address book, Tasks, 

Photos, Events, Ringtones, Videos, SMS 

and other multimedia files. 

Anti-virus – Anti-virus protects the 

mobile phone from security threats like 

viruses and worms, trojans and spyware. 

Internet Security – Internet Security 

protects PCs from virus attacks, filters 

spam and phishing attempts and installs 

a parental control feature to block access 

to inappropriate content. 

Remote Surveillance – A true Mobile 

Monitoring Service which streams live 

video images from installed cameras and 

closed circuit televisions (CCTV) to the 

mobile device anywhere and anytime. 

Health Services 

Maxis provides a number of healthrelated 

services. 

Health-related SMS Tips – Maxis 

customers can subscribe to SMS-based 

health-related tips on their mobile phone. 

These include tips for pregnancy, baby 

care and diet. 

Health Portal – myLaunchpad users can 

visit our health portal for informative 

health-related news and articles. 

Business Solutions 

Maxis also provides a number of 

compelling mobile solutions for the 

business segments. 

BlackBerry from Maxis – Maxis was 

the first to launch the BlackBerry service 

in Malaysia in 2004. Businesses can 

subscribe to our BlackBerry Enterprise 

Server (BES) solution. 

Unity Solutions – A suite of five 

mobile business solutions to enhance 

communication productivity and 

efficiency of SMEs with almost no setup 

costs. Unity Conference allows for 

easy call-conferencing setup via WAP 

or online for up to 10 mobile and fixed 

lines anytime and anywhere. Unity 

OneNumber, Unity Hotline and Unity 

Reception are virtual PABX solutions 

for SMEs. Businesses can use a single 

professional easy-to-remember 1700 

number to front their business and all 

incoming calls can be redirected based on 

preset rules. Unity Hotline provides linehunting 

capability while Unity Reception 

has IVR capabilities. Unity Messaging 

allows delivery of all your incoming SMS, 

MMS and faxes to your email address 

based on preset rules. 

Business Partner Solutions – In 

collaboration with its partners, Maxis 

offers a range of business solutions to 

enhance the operational efficiency and 

productivity of SMEs and enterprises. 

These include field force automation, 

sales force automation, mobile 

information on demand, mobile 

marketing, mobile banking, mobile 

telematics, mobile enforcement, mobile 

reservation, mobile CRM, mobile 

assurance and mobile trading. 

Enterprise SMS and MMS Tools – 

Our solutions bring the ubiquity of this 

communication medium to businesses, 

allowing them to use it for internal 

communication as well as developing 

relationships with their customers. We 

offer stand-alone desktop solutions 

as well as those that can be tightly 

integrated with enterprise applications 

to enable automated SMS/MMS 

communication. 

Maxis M2M – Maxis offers a 

comprehensive suite of wireless Machineto-Machine 

(M2M) solutions for 

businesses to enhance the performance 

of their operations. In addition, a 

Managed M2M platform allows 

developers to create M2M solutions and 

deploy, operate and maintain all of their 

devices in real-time. 

CobraConnex – CobraConnex is 

a remote vehicle security system 

with a host of comfort features. The 

CobraConnex device enables you to 

communicate directly with your vehicle 

and locate and/or immobilise the vehicle 

in real-time thanks to the on-board GPS 

and GSM technologies.

MAXIS BERHAD 


73 

Maxis Mail – Maxis Mail provides all the 

benefits of a personalised corporate email 

service. It comes complete with Push 

Mail services, so you receive your emails 

on your mobile device automatically 

with no delays. As it is hosted on our 

Microsoft Exchange server, there are no 

maintenance and upgrade hassles for the 

customers. 

Wholesale/Network Sharing 

U Mobile Agreement 

On 21 October 2011, Maxis Broadband 

and U Mobile entered into an agreement 

to share the Company’s 3G radio access 

networks (RAN), making the partnership 

the first active 3G RAN sharing 

arrangement to be deployed in Malaysia. 

The agreement will be for an initial 

period of 10 years and will encompass 

LTE sharing when the spectrum becomes 

available. 

This collaboration allows the sharing of 

active telecommunication systems and 

operating frequency spectrum and goes 

beyond the existing physical (passive) 

infrastructure sharing which has been 

practised for a long time between 

operators in the industry. It gives Maxis 

a new revenue source while enhancing 

utilisation of its network in areas that are 

currently underutilised. 

MVNO Partners 

Hosting MVNOs and selling access to the 

Company’s network on a wholesale level 

are additional channels to reach customers. 

For instance, the Company’s reseller 

partner IMEtel (formerly known as OKTel) 

addresses the migrant segments from India, 

Bangladesh, Nepal and Pakistan. 

Salamfone Sdn Bhd is the Company’s 

latest MVNO partner targeting the 

Muslim population mainly in the East 

Coast and northern states of Malaysia. 

Salamfone was officially launched on 

6 April 2011 during the World Halal 

Research Summit. 

Maxis will continue to work with 

resellers and MVNO partners with 

specific competencies that complement 

Maxis to improve the Company’s 

share in segments and regions with 

low penetration (e.g. migrants, priceconscious, 

East Coast, northern states, 

Sabah and Sarawak). 

ENTERPRISE FIXED SERVICES 

Maxis has operated fixed services since 

January 1996. The enterprise fixed 

services include a full suite of voice, 

data and broadband services for various 

business segments including SME, 

corporate, government and wholesale. 

Maxis has the ability to roll out fixed 

services to enterprise customers 

nationwide. In September 2011, Maxis 

launched its Business Fibre product which 

leverages the HSBA agreement with 

Telekom Malaysia as well as our ownbuilt 

fibre network. 

TOP 

Maxis launched convenient 

access to the Cloud and 

better software solutions 

for flexible business 

management. (L to R) 

Chong Pow Min, Maxis 

Head of Fixed and Voice 

Services; Fitri Abdullah, 

Maxis Head of Enterprise 

and Government Business; 

YBhg Datuk Badlisham 

Ghazali, Chief Executive 

Officer of MDeC; and Ng 

Wan Peng, Chief Operating 

Officer of MDeC. 

BELOW 

Fitri Abdullah, Maxis 

Head of Enterprise and 

Government Business at 

the launch of Maxis M2M 

solutions. These solutions 

help businesses streamline 

their operational processes 

in order to boost their 

business bottom lines.

74 



AND SERVICES 

Continued 

THE ENTERPRISE 

FIXED SERVICES 

INCLUDE A FULL 

SUITE OF VOICE, 

DATA AND 

BROADBAND 

SERVICES FOR 

VARIOUS BUSINESS 

SEGMENTS 

INCLUDING SME, 

CORPORATE, 

GOVERNMENT 

AND WHOLESALE. 

Enterprise fixed services provided by 

Maxis include: 

Voice Services – Our wide range 

of fixed voice service for businesses 

includes single or multi-line business 

telephone and voice trunk services 

for larger businesses and Hosted 

Voice Over Internet Protocol for local 

domestic long-distance and international 

calls. Customers can choose from a 

comprehensive selection of voice plans. 

Maxis also offers toll-free number service 

to business for local (1300), national 

(1800) and international ITFS/UIFN 

applications. A comprehensive set of call 

management services can be included to 

enhance Maxis fixed voice service. 

Data Services – Basic data services 

such as Domestic Private Leased Circuit, 

International Private Lease Circuit, 

Metro Ethernet and VSAT are offered 

to corporate customers for their pointto-point 

and/or point-to-multipoint 

connectivity needs. Maxis provides the 

most comprehensive range of VSAT 

solutions in Malaysia. 

Broadband Services – Maxis offers 

businesses a number of ways to access 

the internet ranging from dedicated 

leased lines, ADSL, fibre and satellite 

technologies. 

Data Centre and Managed Services 

– The Maxis Data Centre allows 

customers to deploy IT infrastructure 

based on their network requirements 

and budgets. Services include space in a 

controlled environment, regulated power 

supply, dedicated and shared network 

connections, state-of-the-art security, 

fire detection and suppression and much 

more. In addition to its many leadingedge 

features, the Maxis Data Centre also 

offers a suite of managed service options 

such as managed hosting, managed 

security service and managed unified 

communication. 

Cloud Computing Services – Maxis 

Cloud provides an on-demand, realtime, 

fully-managed cloud computing 

service to both SMEs and enterprises. 

With Maxis Cloud, both large and small 

businesses can implement a flexible 

secure IT infrastructure that can grow 

with their business while easily meeting 

their peak demand needs at much lower 

costs. Businesses can connect their offices 

to Maxis Cloud via many of the access 

technologies offered, including our Maxis 

Business Fibre Internet with download 

speeds up to 32 Mbps. Through our 

collaboration with Telekom Malaysia, 

Maxis Cloud is also available in all HSBB 

coverage areas. 

INTERNATIONAL GATEWAY 

SERVICES 

Maxis International offers international 

communications services mainly to 

international telecommunications 

carriers and domestic wholesale 

companies for termination of traffic 

into and out of Malaysia and for 

the Company’s own outbound 

international traffic. All IDD traffic 

from the Company’s mobile and fixed 

line operations passes through Maxis 

International’s gateway. Over the course 

of the past year, the portion of the 

business which profits from arbitrage in 

rates has been scaled down by focusing 

only on the most profitable routes 

and the Company’s own outbound 

international traffic. Maxis International 

currently has bilateral connections 

with 67 carriers in 31 countries. It has 

invested in a number of submarine cable 

systems to carry its international voice 

and data traffic.

MAXIS BERHAD 


75 

Maxis International derives revenues 

from outgoing international calls 

made by the Company’s customers in 

Malaysia and from settlements from 

overseas telecommunications operators 

for incoming calls which use the 

Company’s facilities. Maxis International 

in turn, incurs costs to overseas 

telecommunications operators for the use 

of its facilities when outgoing calls are 

made from Malaysia. 

HOME SERVICES 

Maxis Home is a full suite of integrated 

services including high-speed internet via 

fibre, wireless and fixed wireless access, 

voice, as well as value-added services 

and content. Maxis has launched HSPA 

or 3.5G services for large-scale wireless 

residential areas. In addition, Maxis 

also provides ADSL services, for both 

residential as well as business users. 

On 14 December 2010, Maxis 

Broadband signed an agreement 

with Telekom Malaysia to accelerate 

broadband penetration across the 

country. With this in place, Maxis will 

be able to provide bundled services 

integrating IP-based offerings to more 

than 1.3 million homes by 2012. The 

signing of the service pact gives Maxis 

last-mile access to homes covered by 

the national HSBB project, to add to its 

existing 10,000 km of optic fibre and 

over 7,000 mobile base station sites. 

Home Fibre Internet – The current 

service offers a comprehensive 

communication solution for homes in the 

Klang Valley, Johor Bahru and Penang. 

This includes reliable and consistent highspeed 

internet access, a voice service and 

soon entertainment services. 

Current packages provide a selection of 

internet access speeds with generous 

usage quotas, bundled free minutes (to 

Maxis fixed line, Maxis mobile and IDD), 

additional free minutes on Maxis postpaid 

mobile, free access to Maxis OneMusic 

for unlimited music and video downloads 

and internet security software. The starter 

pack also includes free installation and 

devices, a network termination unit 

(NTU), WiFi router and a DECT phone. 

Home Wireless Internet – Customers 

can also subscribe to our home wireless 

internet service which provides internet 

access and voice solutions over our 3G/ 

HSPA network. 

Current packages offer internet access 

with a selection of quotas and bundled 

free minutes for calls to all networks. 

Customers can extend their quota by 

purchasing additional units. A powered 

wireless modem for better indoor 

reception than dongles and a DECT 

phone come free with the subscription. 

Home Wired Internet – In selected 

areas in the Klang Valley, Nilai, 

Seremban, Ipoh and Johor Bahru 

where we have fixed line coverage, 

we also offer ADSL broadband 

and fixed line telephony services. 

Current packages offer competitively 

priced ADSL broadband at speeds up to 

2 Mbps and some bundle in free Maxis 

wireless broadband and Maxis OneMusic 

for unlimited music and video downloads. 

In addition, these customers can add 

fixed line telephony which provides 

local, national, mobile and international 

calling. A range of call management 

services is available that allows for caller 

line identification presentation (CLIP), 

voicemail, call waiting, call forwarding, 

three-way calling and call barring. 

In addition, Maxis also entered into an 

agreement with Tenaga National Berhad 

to provide the Company with last-mile 

access to households and base stations 

over outdoor electric poles across 

its nationwide power infrastructure. 

Maxis has itself rolled out FTTH to key 

properties and multi-dwelling units. 

“Market segmentation based on in-depth insights into 

the needs of customers, remains the bedrock of our 

marketing strategy.” 

Shanti Johari 

Head of Marketing Strategy

76 

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MOBILE INTERNET


Annual Report 2011 

77 

customers first 

Life Services 

cloud 

distribution

78 


CUSTOMERS 

FIRST 

At Maxis we put customers at the heart 

of everything we do. During 2011, 

we undertook wide-ranging initiatives 

to make our customer experience 

memorable and meaningful: 

• Continuing to provide the best 

“family plans” with free talk time 

and SMS to share 

• Introducing Maxis Personal 

Relationship Managers for our 

24,000 Elite customers 

• Introducing stricter controls for 

external content providers despite 

negative revenue impact in the 

short term 

• Continuing to invest in our networks 

to provide the best coverage and 

quality to our customers 

• Protecting high usage data 

customers against bill shock by 

introducing alerts and capping their 

bill charges 

• Launching new unlimited data 

roaming bundles to over 16 countries 

from as low as RM33/day 

• Introducing new low IDD rates 

to improve affordability of calling 

internationally 

• Expanding the number of authorised 

payment points and giving customers 

a variety of options to choose from 

to pay their Maxis bills or top-up 

their Hotlink credits 

• Continuing to expand the number of 

sales and service touch points so our 

customers can reach us more easily 

• Introducing new ways of working to 

reduce the need to queue in service 

centres 

• Expanding our dynamic SIM allocation 

capability to 423 dealers nationwide 

to enable new Hotlink customers to 

choose their preferred numbers 

• Introducing new self-service channels 

like the Maxis Customer Service 

application which empowers Maxis 

and Hotlink iPhone customers to 

manage their accounts easily 

• Providing a number of content and 

applications to enrich the lives and 

businesses of our customers including 

Maxis Movies and Maxis Secure 

• Continuing the “Maxis Scholarship 

for Excellence” programme for our 

Postpaid customers’ children

MAXIS BERHAD 


79 

“Customers are at the heart of 

our strategy. Their satisfaction and 

advocacy are the key motivators for 

everything we do.” 

Ebru Dorman 

Head of Corporate Strategy 

Maxis Rewards 

Delighting our customers through 

our reward, loyalty and sponsorship 

programmes continues to be one of our 

differentiators. 

Our postpaid customers receive Maxis 

Rewards points for special privileges from 

close to 100 reputable merchants. During 

2011, they could also take advantage of 

various promotional schemes such as the 

“Buy-1-Get-1-Free” movie ticket promotion 

for those who made a ticket purchase 

using Maxis-PayPal. 

Maxis continued to organise the Maxis 

Team Golf Tour (MTGT) tournament 

in 2011, Malaysia’s largest and most 

prestigious amateur team golf challenge 

for postpaid customers which is in its 

11th year. The all-expenses paid grand 

final was held in Pattaya, Thailand at two 

of the top golf courses in the country. 

Membership to the exclusive Maxis One 

Club is available to postpaid customers 

by invitation. Members get additional 

privileges. On their birthday they can 

make free calls to other Maxis and 

Hotlink customers. They are given priority 

for the purchase of highly sought-after 

newly-released devices and invited 

to special device sales. They also get 

to enjoy ticket discounts for premier 

entertainment events, concerts and 

musicals. In 2011, such events included 

Maroon 5 and Bruno Mars concerts and 

the Sound of Music musical. 

Hotlink customers are rewarded each 

time they top-up. Up to three points are 

credited for every ringgit when the monthly 

cumulative top up of RM30 or more is 

achieved. Customers can redeem their 

Rewards points for free airtime and SMS. 

They can also exchange the reward points 

for special gifts at regional carnivals such 

as Showdown Dance-Off competition 

and Karnival Jom Heboh. 

On their birthday, Hotlink customers 

can make unlimited free calls to other 

Hotlink and Maxis numbers and they 

receive surprise treats on the anniversary 

of their stay with us every year. Our 

Hotlink customers also enjoy special 

privileges from a wide range of reputable 

merchants associated with Hotlink. 

Our Hot Ticket customers are 

rewarded in many ways. In addition 

to the attractively priced bundle of 

core mobile services, they also get to 

participate in many competitions to 

win attractive prizes. For example in 

2011, we had a competition for our 

Hot Ticket customers to win a trip for 

two to attend the final of the Barclays 

Premier League in the UK. In many 

instances, they can redeem attractive 

Hotlink merchandises and participate in 

special promotional activities with our 

partners. In 2011, our Pizza Hut and 

KFC promotions were overwhelmingly 

popular. 

At Maxis we acknowledge that our 

customers are diverse and have a 

variety of interests. They have benefited 

from our sponsorship of many soughtafter 

events such as the Barclays 

Premier League as well as local carnivals 

and festive concerts. 

Select Sponsorships 

Barclays Premier League on ASTRO – Football is 

by far the most popular sport in the country with 

over 60% of Malaysians watching it. Maxis is one of 

the official key broadcast sponsors of the prestigious 

Barclays Premier League (BPL) in Malaysia since 2008. 

Sports Ambassadors – Maxis has been supporting 

top performing athletes in Malaysia since 2009. In 

2011, Maxis sports ambassadors included badminton 

players Dato’ Lee Chong Wei, Koo Kien Kiat and 

Tan Boon Heong. Mohamad Azlan bin Iskandar 

a professional squash player, Mohd Azizulhasni 

bin Awang, a professional track cyclist, and divers 

Pandelela Rinong anak Pamg and Leong Mun Yee. 

Karnival Jom Heboh – This is the largest on-ground 

carnival in Malaysia that attracts over 2.8 million 

people from primarily the mass Malay market with 

events held at eight venues across the country. 

Carnival-goers enjoy special entertainment at Hotlink 

booths, experience Maxis and Hotlink products and 

services and enjoy special discounts on purchases. 

Karnival Jom Heboh was created by TV3 and Maxis, 

through Hotlink, was the main sponsor for the last six 

years and we will continue this in 2012. 

Thaipusam Kondattam – Our involvement in 

religious festivals reflects our appreciation for different 

cultures within our community. Hotlink has been the 

main sponsor of the Thaipusam festival at Batu Caves 

over the last few years. Festival-goers enjoy special 

concerts organised by Hotlink over the two nights. At 

Hotlink booths, they can experience Maxis and Hotlink 

products and services and purchase them at special 

discounts. 

Showdown – This is an urban hip-hop dance 

reality show organised by 8TV as a form of creative 

expression for the urban youth. Maxis, through 

Hotlink, is the main sponsor of Showdown. 

Contestants, who are Maxis or Hotlink customers 

enjoy a priority lane during auditions and receive a gift 

bag from us. Maxis and Hotlink customers through 

our MyDeals service are able to access limited seats 

available on the weekly live shows.

80 


CUSTOMERS 

FIRST 

Continued 

Network Coverage* 

2G 

2G, 3G/HSPA 

* population coverage as of 4Q 2011 

95% 

2G Coverage 

81% 

3G Coverage 

Maxis for Business 

Maxis serves over 600 business 

customers from the corporate and 

government segments and 33,000 

SMEs. We provide relevant and 

innovative mobile, fixed, satellite and IP 

solutions and managed services to meet 

their current and future business needs. 

Maxis also introduced three new services 

in 2011, Cloud Computing, Data Centre, 

and Managed Machine-to-Machine 

(M2M), to enrich our overall products 

and services portfolio and differentiate 

ourselves from our competitors. 

We believe in forging long-term 

partnerships with our business customers. 

Our goal is to provide significant 

business value through our innovative 

communications solutions and to help 

strengthen our customers’ relationships 

with their constituents. One of the most 

outstanding examples of this is the 

Maxis Integrated Partner in Education 

(MIPE) programme. This is a partnership 

platform to provide, not only a suite of 

integrated communications solutions to 

customers in the education segment, 

but also internship and entrepreneurial 

opportunities to their end customers - 

the student population. With 15 higher 

learning institutions signed up, we have 

enriched campus life for more than 

158,000 students nationwide. 

In the same spirit, Maxis has sponsored 

communication services in international 

events hosted in Malaysia such as 

Formula 1 and world golf tours like 

Ladies Professional Golf Association 

(LPGA) and the Malaysia Open organised 

by our key business customers. This has 

enabled them to deliver a world-class 

experience to their end customers via free 

WiFi and mobile applications to stay upto-date 

with the latest results, scores and 

schedules. We have also hosted several 

nationwide seminars and showcase 

sessions to share the latest technology 

updates, solutions and industry trends. 

There are many other initiatives in the 

pipeline. A new enterprise mobility 

solutions portfolio will allow our 

customers to access key business assets 

and information on-the-go; advanced 

capabilities in managed services will 

help to facilitate management of 

customers’ complex networks; an alwayson 

enterprise online store will offer 

convenient access to our products and 

services; and an advanced reporting tool 

will enable customisable billing reports. 

Widest and Fastest Data Network 

Maxis has built a world-class highperformance 

data network, rated 

by independent agencies as the best 

broadband network in Malaysia. In 2011 

our capex spend was RM1.02 billion on 

the back of RM1.44 billion invested in 

2010 and RM1.24 billion in 2009. 

Maxis Postpaid Bill Payment Options 

1. Over the counter at Maxis centres, 

Maxis Exclusive Partner outlets, Pos 

Malaysia, and at selected e-pay outlets 

2. Direct Debit through major credit 

cards and HSBC bank account 

3. Online through a Maxis Online 

Account and via online banking 

facility of major banks 

4. Via SMS with a linked credit card, 

bank account or Maxis M-Money 

electronic wallet 

5. ATM terminals of major banks and 

Maxis Payment Kiosks at Maxis centres 

6. Pay by phone by calling Maxis and on 

phone banking facility of major banks 

7. Cheque deposit boxes at Maxis 

centres and HSBC branches 

8. Mail in to the nearest Maxis 

Collections PO Box

MAXIS BERHAD 


81 

“I would like to express my appreciation to the Maxis account 

management team for their excellent customer service. They always 

attend to our requests and issues promptly. The same applies to the 

Corporate Customer Service team (BizCare) who always resolved all 

our after-sales related issues without much effort from our end.” 

Allen Yap 

Procurement Analyst, Global Supply Management, American Express 

We continued to expand and upgrade 

our network for enhanced customer 

experience, with 5,146 HSPA sites 

serving over 81% of the population, 

augmenting a 2G network covering 95% 

of the population. We are committed to 

the future of HSPA and will continue to 

expand our coverage in 2012. We will roll 

out an additional 1,800 HSPA+ (21 Mbps) 

sites nationwide and deploy an additional 

2,170 HSPA+ dual-carrier (42 Mbps) sites 

in all key areas amounting to over 70% of 

our 3G network. 95% of the traffic in our 

network today is data, having grown 54% 

year-on-year. 

We have been aggressively modernising 

and upgrading our core, transmission and 

radio networks to continue to give the 

best experience to our customers and for 

LTE readiness. Maxis will roll out its 4G LTE 

network according to its Detailed Business 

Plan submitted to SKMM as part of the 

application for 2.6GHz spectrum in Klang 

Valley, Penang, Johor Bahru, all state 

capitals and key secondary towns plus 

other strategic areas in the next five years 

with initial services to be launched in mid 

2013. We will be providing LTE coverage 

with seamless fallback to our extensive 

3G network. 

In addition, Maxis has been implementing 

WiFi technology to complement our 

mobile network. Combined with the 

already launched Cloud Computing, 

Machine-to-Machine and Business 

Solutions, this will reinforce Maxis’ 

leadership position as the only integrated 

network player in Malaysia. 

1 July 2011 marked another milestone 

for Maxis; we signed an agreement with 

MEASAT5 (IP Star) to significantly extend 

the capacity of our IP satellite bandwidth. 

This positions us as the largest provider 

of data via satellite in Malaysia and is 

another step towards achieving our 

integrated telco mission. 

Maxis has moved to active sharing of 

its network infrastructure to monetise 

our assets and to avoid duplication 

of resources. We are already sharing 

54% of our sites with the industry. The 

recent multi-billion ringgit agreement 

with U Mobile commits both players 

to extensive active RAN sharing. This 

will become fully operational for 3G in 

2012 and we expect over 25% of our 

3G network to be shared within the 

first year. 

In November 2010, Maxis signed an 

agreement with Telekom Malaysia (TM) 

to buy wholesale HSBB access. In 2011 

this last-mile access was fully integrated 

into the Maxis core systems and Maxis 

Home was launched. Currently Maxis 

has access to one million homes via 

HSBB and this will grow in tandem with 

the expansion of TM’s HSBB network 

coverage. This is complemented by Maxis’ 

own FTTH access infrastructure which 

currently covers over 500 condominium 

developments. 

Extending Reach and Convenience 

The ability to effectively reach our 

customers is of prime importance 

to our success. Maxis has the most 

comprehensive retail reach among 

telecommunications providers in Malaysia 

with over 21,000 outlets nationwide. 

Of these retail outlets, 33 are companyowned 

stores and another 583 are Maxis 

Exclusive Partners’ and Hotlink Exclusive 

Dealers’ outlets that have exclusive 

arrangements with Maxis to offer a broad 

range of products and services. 

We have also grown our non-traditional 

touchpoints, such as ATMs, online 

banking and self-serve kiosks, to nearly 

15,000 to provide wider and more 

convenient payment options. 

Hotlink Prepaid Top-up Options 

1. Top-Up Tickets widely available 

at Maxis centres, Hotlink dealers, 

retail outlets and neighbourhood 

convenience stores 

2. Hot Tickets at authorised Hotlink 

outlets 

3. Easy Top-Up at participating Hotlink 

dealers 

4. Online banking facility of major 

banks and at www.hotlink.com.my 

5. ATM and CDM terminals of major 

banks and Maxis Payment Kiosks at 

Maxis centres 

6. Credit card, debit card, bank 

accounts and Maxis-PayPal 

through Mobile2Top-Up service 

7. Maxis postpaid account upon 

request or billed to on a regular basis 

8. Transfer airtime from another Hotlink 

account by using Share-a-Top-Up 

9. SMS banking with Public Bank and 

Bank Islam 

10. M-Money users can use their 

electronic wallet to top-up 

11. e-pay or OnePay terminals at many 

convenience stores and petrol marts 

12. SOS Top-Up can provide RM2 

emergency credit when user’s active 

account falls below 20 sen. The 

credit will be debited on their next 

top-up 

13. Call-Me-Back service allows inactive 

account holders to request other 

Maxis or Hotlink users to call them 

up to three times a month

82 


CUSTOMERS 

FIRST 

Continued 

“I would like to compliment Jegadesh 

Maniam of Maxis Customer Service for 

his assistance. I learned that it was his 

off day but he took the time to solve 

my problem. I am really amazed by his 

level of service and dedication towards 

a customer’s request.” 

Kunasellaan Kathigesan 


Maxis was recognised 

for its customer 

engagement initiatives 

when it swept 15 

awards at the 12 th 

Customer Relationship 

Management and 


Association (CCAM) 

Annual Awards. 

As an opportunity to test new concepts 

with our customers, in December 2011, 

we unveiled our first concept store at 

The Gardens Mid Valley that will allow 

our customers to experience the wide 

range of products and services Maxis 

offers, including our Home services. It is 

our first outlet to use tablets to enhance 

interactivity and expedite the customer 

request fulfillment process. 

In 2011, Maxis strengthened its 

distribution network further in the 

underserved markets of Sabah and 

Sarawak where two new prepaid 

distribution partners were appointed 

to provide support for our expanded 

territory in these regions. 

Award-Winning Customer Service 


In 2011, Maxis was again recognised as 

having the best customer service team 

across all industries in Malaysia by the 


and Contact Centre Association of 

Malaysia (CCAM), winning Gold in the 

top heavyweight categories including the 

biggest and most coveted award - the 

Best In-house Inbound Contact Centre 

above 100 seats. 

This marks the second consecutive year 

that Maxis has won this award. Maxis 

also received Gold Awards in other 

top categories such as Best In-House 

Outbound Contact Centre below 100 

seats (Sales), Best CRM Programme and 

the Prestige Award for Corporate Social 

Responsibility (CSR). 

This year’s win of an unprecedented 15 

awards almost doubled the eight awards 

Maxis won at last year’s CCAM awards. 

It reflected industry recognition of 

strategic initiatives to ensure consistent 

best-in-class customer service and actual 

day-to-day accomplishments of the 

operations. 

In 2011, we embarked on Next 

Generation Customer Service initiatives 

that focus on multi-channel options, 

proactive service management with 

initiatives such as “New Joiners Journey”, 

“Proactive Bill Education” and enhancing 

our service differentiation proposition 

to high-value customers through the 

introduction of Relationship Managers. 

We constantly look for ways to improve 

our services and have introduced the 

net promoter score and other customer 

experience indicators to track customer 

satisfaction trends. Overall, we continue 

to evolve to serve our customers 

seamlessly through traditional and new 

channels. 

We made our largest financial 

commitment to customer service 

in upgrading and introducing new 

technology and improvements in people 

skills. This commitment to be spread 

over the next five years supports the 

service position of our Company and our 

focus on delivering a superior customer 

experience.

MAXIS BERHAD 


83 

Interactive Online Platform 

Our interactive online platform and 

contact centre is available to postpaid, 

broadband and prepaid customers 

24 hours a day, 7 days a week. Maxis 

received almost 18 million visitors to 

our main websites Maxis.com.my and 

Hotlink.com.my throughout 2011. 

To serve our online community, 

Maxis has created Maxis Forum at 

https://forum.maxis.com.my/ where 

people can share and exchange 

information and access helpful solutions 

and tips including current promotions, 

mobile devices and rate plans and network 

coverage updates. 

Maxis Connects offers personalised 

customer service through Twitter 

(@MaxisListens) which is supported by 

Maxis’ employees. This service which 

operates from 9 am to 12 midnight 

daily, allows our customer to tweet their 

questions and our Maxis employees will 

revert with helpful answers. Maxis had 

an online community of over 700,000 

on Twitter and Facebook as at the end 

of 2011. 

The introduction of this social platform 

won Maxis the Gold Award for Best 

Social Media Programme in Contact 

Centre, at the 12th CCAM Excellence 

Award 2011. 

On 1 July 2011, Hotlink re-launched 

itself with a fresh new look and campaign 

themed “Now You Can” aimed at 

making life better for customers through 

innovative products and services and 

unique experiences. Several initiatives 

were introduced for customers who 

spend a great deal of their time in 

cyberspace. 

In the “Bloggers without Borders” 

online contest, Hotlink customers 

voted for their favourite blogger on 

www.nowyoucan.my. Three bloggers 

with the most votes were packed off 

on an adventure of a lifetime and sent 

tweets, blogs and video updates of 

their experiences via Hotlink prepaid 

data roaming and a Hotlink prepaid 

smartphone. 

In 2011, we introduced the first Hotlink 

People Powered Concert featuring Yuna, 

a popular Malaysian singer-songwriter. 

She wrote a song which Hotlink 

customers were asked to name. It was 

performed live to an online audience 

of 10,000 customers on 14 December, 

powered by Maxis Cloud Computing 

services. A total of 2,348 submissions 

were sent in and the Hotlink-Yuna page 

received 220,336 hits in the following 

two weeks. 

The online channel is becoming 

increasingly popular as a way to engage 

with our customers and will continue to 

be an area of strategic focus for Maxis in 

2012 and beyond. 

The Yuna music box 

allowed our customers 

to record themselves 

singing for a chance to 

be featured in her new 

music video. 

“At Maxis, we are eager to respond to the seismic shift in consumer behavior, 

providing solutions to promote the rapid adoption of social and digital media as 

a primary means of connection and communication. Internally we are investing 

heavily in leading-edge information systems to enable us to serve our customers 

in the most convenient and quickest manner - be it through a phone call to our 

contact centre, a visit to our stores or while they are at home communicating with 

us via a multitude of social channels available on the internet today.” 

Lee Chuan Yew 

Chief Information Officer

84 


INSPIRING 

PEOPLE 

“The Stanford Executive Programme was an extraordinary 

experience. The combination of terrific professors, wellknown 

guest speakers and the participation of over 120 

distinguished global business leaders was hugely enriching 

professionally and personally, very empowering.” 

Jeff Chong 

Head of Mobility Products and International Services 

OUR GROWTH AND 

SUCCESS IS FIRMLY 

HINGED ON OUR 

PEOPLE, MAKING IT 

IMPERATIVE FOR US 

TO ATTRACT, DEVELOP 

AND RETAIN THE BEST. 

OUR PEOPLE PROVIDE 

US WITH OUR STRONG 

COMPETITIVE EDGE 

AND KEEP US AT THE 

FOREFRONT OF THE 

RAPIDLY EVOLVING 

TELECOMMUNICATIONS 

INDUSTRY 

Our values revolve around being Simple, 

Trustworthy, Creative and Brave. We 

strive for a close-knit Maxis family 

through building work relationships 

based on trust, mutual respect and 

teamwork, making Maxis a great place 

to work. 

Our workforce of more than 3,400 

employees is provided extensive 

opportunities to learn and develop 

themselves both professionally and 

personally. We endeavour to provide our 

employees with the right environment, 

competitive rewards and recognition 

programmes and benefits tailored to 

individual needs, all of which contribute 

to a highly engaged and committed 

workforce. 

Attracting the Best People 

The Maxis team operates at the forefront 

of technology. We hire the most talented 

people from diverse backgrounds sourced 

both locally and abroad. We value 

diversity as the wealth of experience and 

perspectives it brings strengthens our 

ability to connect with a wide crosssection 

of customers and builds a richer 

environment for creativity and innovation. 

In line with the government’s 

aspirations, we launched our global 

Malaysian talent programme which 

enabled us to identify and hire top 

Malaysian talents working abroad 

to further strengthen our senior 

leadership team. 

In developing local talent, we are 

especially dedicated to bringing into our 

fold fresh Malaysian graduates studying 

at top-ranked global universities through 

our Maxis Management Associate 

Programme (M-MAP). 

Creating a Pool of Future Leaders 

In our journey to becoming an integrated 

communications service provider, 

our high performance culture and 

strengthened leadership capabilities 

equipped us to rapidly move beyond 

mobile into the future of integrated play. 

Nurturing leadership qualities begins 

right from the day our employees join 

the Company. Our induction programme, 

On-Board with Maxis, gives new recruits 

the opportunity to interact with senior 

leaders to allow uninhibited sharing 

of ideas and experiences early in their 

career with Maxis. The induction 

programme includes an introduction to 

Maxis’ operations as well as a unique 

opportunity for a hands-on experience 

in serving customers at call centres 

and retail centres. This is also the time 

when we inculcate Maxis values to help 

new hires fulfill their roles as brand 

ambassadors. 

The M-MAP, a young talent development 

initiative, sources local talent from 

top ranking global universities. The 

programme is designed to develop and 

groom graduates into high potential 

leaders who will succeed in the future in 

senior management positions. The twoyear 

programme is designed to develop 

the agility and strategic leadership skills 

that will enable them to fast-track their 

progress into leadership roles. In 2011, 

we recruited 20 Management Associates 

who are now part of the “feeder pool” 

for future senior leaders.

MAXIS BERHAD 


85 

“As the CFO of Maxis Communications Berhad’s first overseas joint 

venture in Indonesia, we built the company from ground up within a very 

competitive telco market. I believe the experience gained from working 

abroad in such a business environment helps us plan for the right resources, 

to invigorate an integrated communications enterprise such as Maxis.” 

Tan Hoon San 

Head of Planning, Finance and Tax 

The Maxis Leadership Development 

Engine (LDE) programme is designed to 

ensure that we have the right calibre of 

leaders, in the right roles and at the right 

time to meet current and future business 

needs. The LDE is part of our strategy 

for building management capability and 

inspirational leadership. 

Lifelong Learning 

We are part of a fast-moving, 

knowledge-intensive industry and we see 

learning as a lifetime process to help our 

employees stay abreast of technology 

and embrace the inevitability of change. 

In 2011, we spent more than RM7 million 

on training and learning opportunities for 

our people. 

The Maxis Academy was set up in 

2001 and has become an outstanding 

centre of excellence for Information, 

Communications and Technology (ICT) 

training and development. It offers our 

employees a unique and stimulating 

learning environment in which to raise 

their talent and capability levels. Last year, 

more than 3,000 employees participated 

in a diverse range of programmes. 

The Maxis Internship Programme 

provides undergraduates with the 

opportunity to gain exposure in a high 

performance organisation which operates 

at the cutting-edge of the fast moving 

telecommunications industry. In 2011, we 

were proud to support over 100 interns. 

We also encourage employees who wish 

to pursue opportunities in institutions 

of higher learning. The Continuous 

Development Partnership Programme 

is designed for employees interested 

in pursuing part-time undergraduate 

or postgraduate degrees while the 

Further Education Scheme gives selected 

employees the benefit of sabbatical leave 

to obtain professional post-graduate 

degrees at top-tier global universities. 

As part of our extended welfare 

to employees’ families, we provide 

scholarships to the children of our 

employees for undergraduate studies 

through the Maxis Scholarship for 

Excellence Awards. Since inception 

up to the end of 2011, Maxis has 

invested RM2.9 million in scholarships 

to employees’ children. The Maxis 

Young Achievers’ Awards Programme 

recognises employees’ children who have 

achieved outstanding results in key public 

examinations. 

Leadership 

We are committed to further 

strengthening the leadership effectiveness 

of our Senior Leadership Team (SLT) 

members through our executive 

development programmes. Since 2011, 

we have provided SLT members with an 

Executive Coach to strengthen personal 

and leadership effectiveness. 

Maxis management 

associates are put 

through comprehensive 

mentoring and training 

programmes to develop 

their leadership skills. 

NURTURING 

LEADERSHIP 

QUALITIES 

BEGINS RIGHT 

FROM THE DAY 

OUR EMPLOYEES 

JOIN THE 

COMPANY

86 


INSPIRING 

PEOPLE 

Continued 

To ensure that our senior leaders are 

upskilled in contemporary thinking on 

executive management, we sent three 

SLT members to the Stanford Executive 

Programme and two to the Harvard 

Advanced Management programme. 

In order to ensure role fit at senior 

management, we introduced 

Leadership Profiling Assessment for 

new recruitments as well as promotions 

to these levels. 

Customised Benefits and Sharing 

Our Growth 

In addition to paying competitive salaries 

benchmarked against the market, Maxis 

offers employees a comprehensive 

benefits package. We allow employees 

to customise their own benefits package 

using a benefit points system. This 

allows employees to tailor benefits to 

their needs as they go through different 

stages and priorities in their lives. Being 

our brand ambassadors, employees are 

eligible to purchase a range of the latest 

devices offered by Maxis at a preferred 

price and also receive voice and data 

rebates for their Maxis lines. 

We launched our performance-based 

Employee Share Option Scheme (ESOS) 

in 2011. Our ESOS is designed for eight 

years with five grants awarded from 

2011 to 2015. To reinforce the right 

behaviour and culture, we link this 

reward programme to both the Company 

and individual performance. Our 

scheme enables the employee to jointly 

participate in long-term wealth creation 

via sustained performance. 

Engaging Employees Through 

Continuous Communications 

We have created a workplace which 

provides a balance between a meaningful 

and challenging career path and learning 

opportunities and an energising work 

environment. We have made a concerted 

effort to unlock the highest levels of 

performance and productivity and 

ensured that our employees understand 

and are aligned to the Company’s 

aspirations and committed to its success. 

Our employee engagement is about 

creating opportunities for our employees 

to connect with the management. Our 

senior leaders engage with employees 

regularly to share information and build 

camaraderie across the organisation 

through various events such as town 

halls and Managers’ Communication 

Sessions. An electronic newsletter keeps 

our people in all corners of the country 

updated on Maxis activities and events. 

Engagement levels and employee 

satisfaction are measured through the 

Voice of Maxis survey. Conducted annually 

by a leading independent consultant, 

the survey provides valuable feedback 

about what our employees need, what 

motivates them and how best we can 

address critical issues and gaps. As a 

result, we have maintained high levels of 

engagement each year compared to both 

local Malaysian companies and global 

telecommunication companies. 

The health and well-being of our 

employees are important to us, and we 

encourage them to participate in the 

company’s organised sports and recreation 

activities. We host regular recreational 

activities including nature walks, white 

water rafting, fishing excursions, and 

even cooking classes. In 2011, wellness 

initiatives included a nationwide health 

screening and risk assessment for 

employees, which is the kick-off to our 

newly unveiled wellness programme. 

Every year we organise nationwide events 

such as the “Maxis Got Talent!” singing 

competition and the “Maxis V-Challenge 

Regional Competition”, to encourage 

teamwork and nurture a conducive and 

vibrant working environment. In honour 

of the supportive spouses and children of 

our employees, Family Day and Treasure 

Hunts are just a sample of activities 

organised specially for employees to 

enjoy with their families. 

TOP 

Sandip Das, Chief Executive 

Officer of Maxis, shares the 

Company’s plans with staff at 

an offsite meeting. 

BELOW 

Maxis staff and their 

families get together for 

fun recreational activities 

at the Maxis Family Day.

• ALIGNED TO CORPORATE STRATEGY AND CR MISSION • 

MAXIS BERHAD 


87 


CORPORATE 

RESPONSIBILITY 

We see Corporate Responsibility (CR) 

as integral to the sustainability of 

our business. It is at the heart of our 

relationships with our stakeholders and 

society, underpinning everything we do 

to enrich the lives of these communities. 

In 2011, we undertook an exercise to 

identify and articulate our long-term CR 

priorities. We introduced a CR Framework 

which provides a clear direction for our 

initiatives and ensures these are aligned 

Corporate Responsibility Framework 

• Inclusive workplace 

• Training and 

development 

• Health and safety 

• Benefits and rights 

CR Mission 

CR Strategic Pillars 

CR Philosophies 

TO WORK 

CREATE A GREAT PLACE 

Our CR mission: 

“Harnessing leading-edge 

technology and innovation 

to create value for the 

economy, society and the 

environment in which 

we operate.” 

CREATING VALUE FOR ALL OUR STAKEHOLDERS IN EVERYTHING WE DO 

ADVOCATE ENVIRONMENTALLY 

FRIENDLY PRACTICES 

• Resource efficiency 

• Carbon management 

• Waste management 

to our corporate strategy and CR mission 

to create value for all our stakeholders 

and the nation. 

Our CR strategy cuts across the 

marketplace, workplace, community and 

environment to focus on three strategic 

pillars: Developing and Enriching our 

Community, Customers and Partners; 

Creating a Great Place to Work and 

Advocating Environmentally Friendly 

Practices. 

DEVELOP & ENRICH OUR COMMUNITY, 

CUSTOMERS & PARTNERS 

• Access to network 

and technology 

• Enriching and 

responsible 

products and 

services 

• Scholarships, 

sponsorships 

and community 

development 

• Sustainable supply 

chain 

DEVELOPING AND ENRICHING 

OUR COMMUNITY, CUSTOMERS 

AND PARTNERS 

In providing integrated communications 

services, we are committed to enriching 

the lives of our customers, partners and 

the community through innovation, 

better products and services and the 

development of the communities in 

which we operate. 

Responsible Conduct in the 

Marketplace 

We believe in conducting business fairly, 

impartially and in full compliance with 

all laws and regulations. Corporate 

governance at Maxis is steered by its 

Board of Directors, hence the emphasis 

on the Board’s integrity, accountability 

and independence. 

Honesty and integrity underlie all of 

our relationships, including those 

with customers, vendors, suppliers, 

contractors, the business community 

at large and among employees. Our 

comprehensive Ethical Business Practices 

applies equally to Board members, 

management and employees. We have 

set up the Office of Business Practice 

to provide policy guidance and assist 

employees and people doing business 

with us in meeting our expectations.

88 


CORPORATE 


Continued 

OUR CR MISSION IS 

“HARNESSING LEADING- 

EDGE TECHNOLOGY AND 

INNOVATION TO CREATE VALUE 

FOR THE ECONOMY, SOCIETY 

AND THE ENVIRONMENT IN 

WHICH WE OPERATE.” 

Providing Access to Underserved 

Communities in Geographically 

Remote Areas 

In 2011, we continued to improve 

network coverage, speed and capacity in 

Peninsular Malaysia, Sabah and Sarawak. 

HSPA coverage was expanded to over 

5,000 sites in total and we continued 

deployment of 3G on 900MHz to extend 

indoor coverage and increase speed. 

As at end of December 2011, our 3G 

coverage was at 81% of the population. 

Maxis also actively supports the 

Government’s Universal Service 

Provision (USP) initiative to promote 

the widespread availability and usage 

of network services and applications to 

underserved areas. One such project 

under the USP is the Community 

Broadband Centre (CBC). Maxis has been 

awarded eight sites in Sarawak and two 

in Kedah which are fully utilised to meet 

the aspirations of the Government. 

Stakeholder Engagement 

In 2011, we conducted an extensive faceto-face 

Brand and Customer Satisfaction 

Tracker survey as part of our ongoing 

efforts to gauge customer feedback. 

Focus groups and advisory panels helped 

discern customers’ changing wants 

and needs. We constantly upgrade 

and expand online services and other 

interactive channels to offer better and 

faster service. 

Maxis maintains constant ‘dialogue’ 

with its shareholders and the investing 

community. In addition to the quarterly 

announcement of financial results, key 

investor relations initiatives include 

one-on-one meetings, conference calls 

and investor conferences. Information 

on the Group’s financial performance is 

available on its website; and feedback is 

encouraged via ir@maxis.com.my. 

We have addressed the community’s 

concerns about the health impacts of 

proximity to radio frequency (RF) signals 

through a combination of dialogue, 

scientific evidence and awarenessraising, 

often with the inclusion of local 

authorities. We also actively participated 

in five SKMM RF awareness programmes. 

Independent reviews by panels of experts 

commissioned by recognised health 

agencies are made available on our 

website to aid public understanding on 

tower safety. 

Customer Privacy 

We continuously review our ICT Policy to 

ensure it provides adequate and effective 

safeguards for information confidentiality, 

integrity and availability. A structured 

ranking system for data confidentiality 

outlines the care that must be taken with 

sensitive information and ensures that all 

customer and employee information is 

strictly private and confidential.

MAXIS BERHAD 


89 

Maxis and MOE embarked on a 

smart partnership to provide free 

online education services for over 

2,300 secondary schools nationwide. 

Innovative Solutions with Social 

Benefits to the Community 

Dunia Internetmu – expands Internet 

penetration through mobile devices 

that are more affordable. It empowers 

Malaysians with access to relevant, 

reliable and secure local content on a 

single URL via myLaunchpad on their 

mobile devices and the web. With 

Dunia Internetmu, Maxis hopes to enjoy 

penetration rates breaching 100%, far 

exceeding PC penetration rates in the 

country. 

Product and Service Labeling and 

Marketing Communications 

Since 2008, Maxis has been a 

signatory to the Content Code of 

the Communications and Multimedia 

Content Forum of Malaysia. The Code 

sets out guidelines and procedures for 

good practice and standards of content 

disseminated to audiences by service 

providers in our industry in Malaysia. 

Established Procurement Policies 

We have established policies and 

standard operating procedures to 

manage the procurement process and 

ensure we secure the best price and 

quality and appropriate technology 

to support the business. We build 

strong partnerships with the objective 

of reducing the cost-to-serve our 

customers. At the same time, we conduct 

competitive tenders and bids to ensure 

transparency and open competition. 

Vendor Development Programme 

We introduced a Vendor Development 

Programme in 2004 to ensure that local 

contractors have the requisite capacity 

and capability to deliver and succeed in a 

competitive environment. From only 18 

vendors at the outset, we now have 150 

vendors who have benefited from this 

programme. 

Enriching and Responsible 

Products and Services 

Today, our business has a unique 

opportunity to enrich our customers’ 

lives in a more impactful way than ever 

before. We want to make sure that 

we continue to bring the full benefits 

and excitement of communications 

technology and interactivity into everyday 

life. In doing this, we are particularly 

aware of the need to focus on areas 

where we can make a real difference. 

Free online education service for 

Secondary Schools in Malaysia – Maxis 

and the Ministry of Education, embarked 

on a smart partnership to increase ICT 

usage in schools. We will provide 2,300 

secondary schools with free access to 

our flagship online education service 

which enriches the learning experience 

for students by encouraging different 

learning styles.

90 


CORPORATE 


Continued 

TOP 

Under the Cyberkids 

with Community training 

programme, Maxis 

reached out to 

participants of all ages. 

BELOW 

The Maxis Scholarship 

for Excellence Awards 

nurtures Malaysian talent. 

In 2011, 51 scholarships 

were awarded to 

deserving students. 

Under the Maxis Secure umbrella, 

we offer a suite of services enabling 

customers to protect their data and 

devices. Maxis is the first communications 

provider in Malaysia to offer customers 

protection against key security threats 

which can potentially affect them, such 

as the loss or theft of their devices, 

the loss of personal data and threats 

from malicious software (malware) and 

trojans (destructive programmes that 

masquerade as benign applications). 

mZakat – The giving of alms to charity 

falls under one of the five pillars of Islam; 

this is known as Zakat. Maxis has enabled 

this donation to be made via SMS in 

selected states for Zakat Fitrah, during 

the Ramadan month. 

Support for pilgrims – Maxis 

collaborated with Saudi Telecom Prepaid 

during the Haj period to offer cheaper call 

packages and International Direct Dialing 

(IDD) to pilgrims performing the Haj. 

Supporting the Development of 

Community and Changing Lives 

Through Technology 

Maxis Cyberkids Programme 

Our community flagship programme, 

the Maxis Cyberkids, creates 

awareness of computer skills, improves 

understanding and usage of the 

internet and builds an appreciation for 

technology. Since its launch in 2002, 

we have trained over 8,500 teachers 

and students in more than 1,500 

schools across Malaysia at a cost of 

well over RM25 million. In 2011, we 

spent RM600,000 to train students and 

teachers from 15 secondary schools. 

The long-term sustainability of the 

programme is ensured through the 

ecosystem that we have built around 

the Maxis Cyberkids programme. 

This includes: 

The Maxis Cyberkids National 

Challenge – Schools that participate in 

the Maxis Cyberkids Camp compete to 

develop projects which have the potential 

to change the way the students learn. In 

2011, 12 projects were submitted. These 

schools also get to set up Cyberkids Club 

for their schools and participate in the 

“Train the Trainer” programme. In 2011, 

1,860 students were trained through 52 

ICT training classes. 

Maxis Cyberkids Portal – This portal 

(http://maxiscyberkids.my) is exclusively for 

Cyberkids Alumni to keep in touch with 

each other, and abreast of the latest ICT 

developments. Participants have access 

to a rich store of educational resources 

and other engaging e-learning materials. 

The portal had 1,761 members, 47 group 

pages and 31,130 guest views as at 

December 2011. 

Maxis Cyberkids with Community – 

These camps serve under-privileged 

communities. Four such camps involving 

120 participants from all ages were held 

in 2011. 

Maxis Mobile Content Challenge 

This is an exciting platform for students 

from institutions of higher learning to 

design, develop and deliver creative 

mobile content applications. Over 460 

new ideas have been generated so far. In 

2010 and 2011, we enabled past winners 

to fast-track their innovation into new 

businesses. Thirty-two teams participated 

and five teams were recognised as new 

entrepreneurs.

MAXIS BERHAD 


91 

Maxis Scholarships for 


Creating a More Inclusive 

Workplace 

Maxis Scholarships for Excellence 

Awards supports the Ministry of Higher 

Education’s objective of producing 

globally competitive graduates. 

In 2011, 51 scholarships were awarded: 

• Maxis Scholarship for Excellence 

Award for Post-Graduate Studies 

(five recipients); 

• Maxis Undergraduate Scholarship 

Programme for Postpaid Customers, 

a scholarship tenable at local and 

foreign institutions of learning 

(43 recipients); 

• Maxis Undergraduate Scholarship 

Programme for children of Maxis’ 

employees (three recipients). 

Employee Volunteerism 

We encourage employees to make a 

positive difference in the communities 

around them. As at end of 2011, 574 

Maxis’ volunteers clocked in 9,610 

volunteer hours, a 284% increase 

from 2,500 hours in 2010. Twenty-two 

staff participated in a special training 

programme to equip them to be 

facilitators for Maxis Cyberkids Camp. 

CREATING A GREAT PLACE TO 

WORK 

Consistent with our efforts to be a 

high-performing organisation, we offer 

employees access to a wide range of 

learning opportunities to help them 

achieve their full potential and strengthen 

their ability to respond to change and 

innovation. 

We value diversity, because this ensures 

that we are enriched by a wide variety 

of skills, experiences and perspectives. 

Our goal is to create a working culture 

that is inclusive, one in which our people 

share a deep sense of belonging and 

understanding, and where talent is 

appreciated. We believe this is pivotal 

to boosting innovation, increasing 

productivity and sharpening our 

competitive edge. At the same time, 

we promote employment of the local 

workforce. As of 31 December 2011, 

Maxis had 3,437 staff with 26 expatriates 

and 3,411 Malaysian staff. 

Communications and Engagement 

We use a range of communications 

channels to keep our people informed 

and to understand how they feel 

about how we can do things better. 

These include eNEWS, our web-based 

newsletter, the Idea Post forum and 

face-to-face townhall sessions. Mail 

Express and HR Express offer up-to-theminute 

news updates. Voice of Maxis 

is an annual survey to find out what 

employees feel about their job, their 

colleagues and level of engagement. 

Learning and Capability 

Development 

We know that the only way to stay at the 

forefront of innovation and service quality 

is to improve the skills of our people. 

Our people development programmes 

are therefore targeted at developing 

talent and raising capability levels across 

the company and building skills that 

will support our growth. We offer both 

structured classroom training as well as 

an e-Learning platform. 

TOP 

Maxis volunteers were 

given training in the 

Cyberkids programme 

to equip them with the 

necessary skills to carry out 

their tasks with enjoyment 

and confidence. 

BELOW 

Maxis launched a wellness 

campaign for over 3,400 

employees nationwide.

92 


CORPORATE 


Continued 

WE ACHIEVED 

A 13.7% 

IMPROVEMENT 

IN ENERGY 

EFFICIENCY 

The Maxis Academy is an outstanding 

centre for learning which builds 

knowledge and skills. Other initiatives 

include Leadership Development 

Programmes, customised senior 

management programmes, partnerships 

with leading universities in the world 

such as Harvard, and a successful 

Management Training programme for 

fresh graduates. 

Workplace Safety and Health 

The health and safety of our staff are 

very important to us. We encourage 

all employees and contractors to take 

advantage of the extensive training 

and management processes and other 

Occupational Safety and Health resources 

that we have put in place to maintain a 

safe and healthy working environment. 

Safeguarding employee welfare 

Our employees enjoy a comprehensive 

and competitive package of benefits. 

Apart from the standard benefits of 

annual leave, medical and insurance 

coverage, employees are also offered 

special staff packages on Maxis products 

and services. 

Work-Life Balance 

We launched a wellness programme, 

My Wellness, My Choice in 2011 to 

encourage employees to lead a healthy 

lifestyle both at work and at home. It 

incorporates a three-year plan to raise 

their understanding about wellness and 

disease-prevention. More than 60% 

of Maxis employees nationwide have 

completed their biometric screening. An 

online health risk assessment application, 

HealthDrive, evaluated their health risks 

and quality of life. 

We also offer flexible work hours, a Flexi 

Benefits programme and other initiatives 

that involve and benefit our employees 

and their families. 

ADVOCATING ENVIRONMENTALLY 

FRIENDLY PRACTICES 

Part of what we do involves the physical 

construction of data networks. We 

want to do this in a way that limits our 

impact on the environment. Beyond this, 

we have taken a proactive approach to 

constructively rehabilitate and rebuild 

the landscape. Over the past two years, 

we have placed extra emphasis on 

addressing our direct operational impacts 

on the environment. Our strategic 

plan identifies three major focus areas: 

resource efficiency; carbon management 

and energy and waste management. 

Resource Efficiency and Carbon 

Management 

Over the past two years, we achieved 

a 13.7% improvement in the energy 

efficiency of our operations – avoiding 

over four tonnes of CO 2 

emission for 

each base transmitter station and saving 

almost RM10 million in avoided cost. 

We have replaced key network elements 

with best-in-class technologies which are 

energy-efficient. We have also replaced 

diesel power with solar power at remote 

base stations, and advocated sharing 

of networks so that resources are not 

duplicated. Approximately 54% of our 

base station sites are shared with other 

operators. In 2011, Maxis entered into 

a landmark agreement to share our 3G 

radio access networks (RAN), the first 

active 3G RAN sharing arrangement to be 

deployed in Malaysia.

MAXIS BERHAD 


93 

Although we do not place base 

transmission stations in high biodiversity 

areas, we recognise that some of 

our base stations will replace natural 

vegetation which acts as a carbon 

sink and supports biodiversity. We are 

currently exploring guidelines for site 

acquisition assessments to ensure that we 

do not impose on high biodiversity areas. 

We planted over 7,000 Mahang seedlings 

at a one-for-one ratio for every base 

transmission station to contribute towards 

minimising our carbon footprint. The 

scheme was implemented in partnership 

with the Selangor Forestry Department, 

Sathya Sai Council of Malaysia and the 

Global Environment Centre. 

Further Information 

We have produced our inaugural 

Sustainability Report 2010/2011. This 

disclosure showcases our sustainable 

business practices in the marketplace, 

workplace, community and environment. 

The Report covers an 18-month 

reporting period from January 2010 

to June 2011 and follows the Global 

Reporting Initiative (GRI) framework, 

an internationally recognised standard 

for sustainability reporting. Maxis’ 

Sustainability Report 2010/2011 is 

available on our website. 

Energy and Waste Management 

We are working hard to bring down our 

energy consumption and reduce waste 

throughout our operations. We also 

encourage our suppliers and customers 

to minimise wastage and use recyclable 

green materials. 

Key initiatives include: 

• Installing energy saving light bulbs, 

reducing the number of visits to 

sites, introducing heat management 

solutions and better air conditioning, 

and installing dynamic radio control 

power during off peak periods. 

• Encouraging all offices to turn off 

air conditioners after 6 pm, and 

introducing recycling for papers and 

toners across the business. 

• We have introduced e-billing and 

continue to promote this to increase 

uptake. 

TOP 

Maxis staff, working 

with partners, planted 

over 7,000 Mahang 

seedlings in our efforts 

towards the reduction 

of CO 2 

emissions. 

BELOW 

Maxis produced its 

inaugural Sustainability 

Report to ensure 

transparency in its 

approach to CR.

94 

BORDERLESS FUTURE 

Te 

chno 

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is tr 

an 

sf 

orming the 

way 

we li 

ve and 

lea 

rn. We are 

lead 

adin 

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Max 

axis 

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in Sc 

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them 

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We 

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Why 

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? 


MOBILE INTERNET

MAXIS BERHAD 


95 


LIFE SERVICES 

CLOUD 

DISTRIBUTION

96 


OUTLOOK 

Economic outlook 

The government stimulus package and 

increased consumer spending resulted 

in the Malaysian economy growing at a 

steady pace despite fiscal uncertainties 

in global markets. The country 

recorded a GDP growth rate of 5% in 

2011. A strong and resilient domestic 

economy coupled with sustained 

private consumption and investment 

helped the Malaysian economy remain 

in a positive growth trajectory. The 

2012 Budget is a continuation of the 

efforts being undertaken to secure 

a strong future for the nation. The 

Budget addresses fundamental areas of 

raising investment, developing human 

capital, uplifting rural areas, spreading 

economic development and raising 

administrative efficiency as key pillars. 

The Economic Transformation Programme 

(ETP) designed to spur growth across 

many industries by harnessing digital 

infrastructure effectively certainly augurs 

well for the telecommunications industry 

as a whole. At Maxis, we are keen to play 

a decisive role in the ETP by providing 

a technological plank to fast-track the 

process. 

Demand 

We are in a period of continuous 

change and disruption in the 

telecommunications industry with a 

shift from a voice-centric business to 

a data-centric business. The future 

growth of the industry is underpinned 

by the steadily growing demand for 

advanced data and broadband services, 

particularly among Malaysian youth with 

their pronounced appetite for social 

networking, content and applications. 

Traditional business models are being 

challenged by newer players leveraging 

shifts in consumer behaviour, increasing 

ubiquity in connectivity and a proliferation 

of smart mobile devices. Consumers are 

more empowered through the digital 

revolution and they want more speed, 

mobility, simplicity and choice. 

We believe the overall demand for 

telecommunications services will remain 

strong. Mobile internet and broadband 

will be the biggest growth drivers in line 

with the growing “need” to be always 

connected: on-the-go, at home and 

at work. Smartphone penetration in 

Malaysia is already at 23% as at end of 

2011 and will continue to increase driven 

by technology-savvy Gen Y consumers 

and declining smartphone prices. Tablets 

are expected to drive the future of the 

PC category and lead to a higher level 

of multi-screen usage. However, internet 

access will be increasingly mobile in 

nature, with smartphones being the first 

and only personal internet access screen 

for a significant portion of the mass 

market. 

There are already over 17 million internet 

users in Malaysia and Malaysians spend 

more time online and consume more 

digital content compared to Asian peers. 

Social media is central to the Malaysian 

digital experience, and promises to 

be one of the fastest-growing mobile 

activities. Smart devices will also become 

central for content and service discovery 

and consumption. 

The increase in smart device penetration 

will also drive customer service and 

support needs, both for new adopters 

and as the current smartphone users start 

to use more sophisticated devices and 

applications. 

Cloud storage services are expected 

to gain traction with the explosion 

in personal and enterprise content. 

Consumers and businesses will need 

storage of and access to content across 

any device. In addition, a greater 

emphasis on cost and cash management 

for enterprises, capex-light and 

flexible business models through cloud 

computing and data centre services 

for SMEs and corporates will provide 

attractive solutions and represent new 

revenue streams for telecommunications 

service providers. 

Machine-to-Machine will be another 

trend to watch in the future. It has many 

applications from vending machines 

to fleet management, security and 

consumer electronics. 

Competition 

The operating environment remains 

competitive with sustained pressure on 

revenue growth and profitability. 2011 

saw the resurgence of smaller mobile 

and Wimax players and five new Mobile 

Virtual Network Operators (MVNOs) 

coming to market, taking the total 

number of MVNOs to 11 as of end of 

December. These new players aim to gain 

market share through aggressive pricing 

in voice and SMS services, and now even 

in data services. 

In 2011, the Malaysian mobile market 

saw continued rivalry among key 

mobile players especially in the wireless 

broadband, mobile internet and device 

bundling offers. As a result, wireless 

broadband pricing has become very 

affordable in Malaysia. There was a 

resurgence of players like U Mobile, P1, 

and the first full-year operation of Yes. 

The government’s LTE plan announced 

in December 2011 indicates that an 

additional player could potentially be 

introduced.

MAXIS BERHAD 


97 

The year under review saw increasing 

availability of FTTH in selected urban 

areas in Malaysia. This higher quality 

broadband connectivity could potentially 

put pressure on the wireless broadband 

market by curtailing some of the fixed 

broadband substitution currently 

practised by some segments. The launch 

of Maxis Home in 2011 and potentially 

others entering the FTTH market in 

2012, will increase competition and give 

consumers a wider choice in the fixed 

broadband market. 

Risks 

Across the world the mobile industry 

is considering the ramifications arising 

from the entry of non-traditional players. 

Already in some western markets, social 

messaging and over-the-top voice over 

IP and instant messaging applications are 

starting to cause shifts in communication 

patterns resulting in some cannibalisation 

of SMS, IDD and roaming revenues. 

So far we have seen limited impact, if 

any, of social messaging on usage levels. 

While SMS messaging could slow down 

over time, mobile internet remains one 

of the key revenue growth drivers for the 

industry and should compensate for the 

decline in traditional revenues. 

While the telecommunications industry is 

generally resilient in the face of economic 

recessions, certain segments of the market 

are sensitive to the health of the economy. 

This is particularly so for the smaller 

businesses and those at the bottom of 

the pyramid. Being large in customer 

volumes, these segments can adversely 

affect industry revenues in the event of an 

economic slowdown or downturn. 

Prospects for 2012 

The operating environment is expected 

to remain competitive and challenging. 

The Company will continue its focus 

on innovative and consumer relevant 

product offerings as well as intensify 

its emphasis on operational efficiency. 

Innovative measures to optimise network 

utilisation are also underway. The outlook 

for the key operating segments are as 

detailed below: 

Mobile Services 

Revenue growth is expected to come 

from the rising demand for data from 

mobile internet, wireless broadband and 

other non-voice services. To encourage 

data uptake, we will strengthen the 

network to offer enhanced customer 

experience with mobile data usage as 

well as seed smart devices. Loyalty and 

retention programmes will be instituted 

to reward customers with plans that 

provide greater value. 

Growth is also expected from more 

focused initiatives in under-penetrated 

market segments to increase Maxis’ share 

in these segments. 

Enterprise Fixed Services 

The growth of Enterprise Fixed business 

will be driven by four key segments, 

namely Corporate, Government and Public 

Sector, Small and Medium Enterprise 

(SME) and Wholesale. These segments 

are expected to see growth in demand 

for managed services, outsourcing of key 

ICT infrastructure, VSAT offerings, Digital 

SME solution bundling and international 

terrestrial services. 

International Gateway Services 

The operating environment for 

International Gateway Services is 

expected to continue to be challenging 

as a result of competition from other 

carriers. The Company will continue to 

capture good value in this business with 

its focus on profitability. 

Home Services 

Demand for Broadband service in 2012 

is expected to be stronger. The total 

number of homes with access to the 

fibre network is projected to expand 

to 1.3 million by end 2012, thereby 

expanding subscription potential. Industrywide, 

new subscriptions are estimated to 

reach 400 thousand in 2012.

FINANCIAL 

STATEMENTS 

Financial Statements 2011 

100 Directors’ Report 


106 Income Statements 

107 Statements of Comprehensive Income 

108 Statements of Financial Position 

110 Statements of Changes in Equity 

113 Statements of Cash Flows 

116 Notes to the Financial Statements 

197 Supplementary Information 

198 Statement by Directors 

199 Statutory Declaration 

200 Independent Auditors’ Report to the Members of Maxis Berhad

100 


DIRECTORS’ 

REPORT 

The Directors hereby submit their Report to the members together with the audited financial statements of the Group and of the 

Company for the financial year ended 31 December 2011. 

PRINCIPAL ACTIVITIES 

The principal activity of the Company is investment holding, whilst the principal activities of the Group, comprising the Company and 

its subsidiaries, are the provision of mobile, fixed line and international gateway telecommunications services as well as internet and 

broadband services and corporate support functions for the Group. Details of the principal activities of the subsidiaries are shown in 

Note 18 to the financial statements. 

There have been no significant changes in the nature of the principal activities of the Group and of the Company during the 

financial year. 

FINANCIAL RESULTS 

GROUP 

RM’000 

COMPANY 

RM’000 

Profit for the financial year attributable to: 

- Equity holders of the Company 2,526,872 2,139,087 

- Non-controlling interest 3,967 0 

Profit for the financial year 2,530,839 2,139,087 

DIVIDENDS 

The dividends on ordinary shares paid by the Company since the end of the previous financial year were as follows: 

In respect of the financial year ended 31 December 2010: 

RM’000 

(a) Fourth interim single-tier tax-exempt dividend of 8.0 sen per ordinary share, paid on 30 March 2011 600,000 

(b) Final single-tier tax-exempt dividend of 8.0 sen per ordinary share, paid on 6 July 2011 600,000 

In respect of the financial year ended 31 December 2011: 

1,200,000 

(a) First interim single-tier tax-exempt dividend of 8.0 sen per ordinary share, paid on 30 June 2011 600,000 

(b) Second interim single-tier tax-exempt dividend of 8.0 sen per ordinary share, paid on 30 September 2011 600,000 

(c) Third interim single-tier tax-exempt dividend of 8.0 sen per ordinary share, paid on 30 December 2011 600,000 

1,800,000

MAXIS BERHAD 


101 

DIVIDENDS (CONTINUED) 

Subsequent to the financial year, on 24 February 2012, the Directors declared a fourth interim single-tier tax-exempt dividend of 8.0 

sen per ordinary share in respect of the financial year ended 31 December 2011, amounting to RM600,000,000 which was paid on 30 

March 2012. The financial statements for the financial year ended 31 December 2011 do not reflect these dividends. Upon declaration, 

the cash dividend payment will be accounted for in equity as an appropriation of retained earnings during the financial year ending 


The Directors recommend the payment of a final single-tier tax-exempt dividend of 8.0 sen per ordinary share, amounting to 

RM600,000,000 in respect of the financial year ended 31 December 2011, which is subject to shareholders’ approval at the 

forthcoming Annual General Meeting, will be paid on a date to be determined. 

RESERVES AND PROVISIONS 

All material transfers to or from reserves and provisions during the financial year have been disclosed in the financial statements. 

SHARE CAPITAL 

There were no changes in the authorised, issued and paid-up capital of the Company during the financial year. 

EMPLOYEE SHARE OPTION SCHEME 

Pursuant to the Employee Share Option Scheme (“ESOS”) implemented on 17 September 2009, the Company will make available new 

shares, not exceeding in aggregate 250,000,000 shares during the existence of the ESOS, to be issued under the options granted. The 

ESOS is for the benefit of eligible employees and eligible directors (executive and non-executive) of the Group and of the Company. 

The ESOS is for a period of ten years and is governed by the ESOS Bye-Laws as set out in the Company’s Prospectus dated 28 October 

2009 issued in relation to its initial public offering. 

An ESOS Committee comprising Directors of the Company has been set up to administer the ESOS. The ESOS Committee may from 

time to time offer share options to eligible employees and eligible directors of the Group and of the Company to subscribe for new 

ordinary shares of RM0.10 each in the Company. 

Details of the ESOS are disclosed in Note 28(b) to the financial statements. 

During the financial year, the following allocations were made by the Company in relation to its ESOS: 

QUANTITY 

OPTIONS ‘000 

Total granted 11,620 

Total exercised 0 

Total forfeited (314) 

Total outstanding as at 31 December 2011 11,306 

The Company was granted an exemption by the Companies Commission of Malaysia on 2 March 2012 from having to disclose in this 

Report the names of employees who have been granted options in aggregate of less than 193,400 options during the financial year.

102 


DIRECTORS’ 

REPORT 

Continued 

EMPLOYEE SHARE OPTION SCHEME (CONTINUED) 

The employees who have been granted options in aggregate of 193,400 or more than 193,400 options during the financial year are 

as follows: 

NUMBER OF OPTIONS 

AS AT 

AS AT 

NAME 1.1.2011 GRANTED EXERCISED 31.12.2011 

Azmi Haji Ujang 0 193,400 0 193,400 

Chow Chee Yan 0 193,400 0 193,400 

Mohamed Fitri bin Abdullah 0 300,000 0 300,000 

Stephen John Mead 0 193,400 0 193,400 

Mark Guy Dioguardi 0 600,000 0 600,000 

Geoffrey King 0 200,000 0 200,000 

The options over shares were granted pursuant to the ESOS and entitled the employees to subscribe for new ordinary shares of 

RM0.10 each at an exercise price of RM5.45 per ordinary share. 

An analysis of the options granted to key management personnel including Directors is as follows: 

AGGREGATE MAXIMUM 

ALLOCATION ACTUAL ALLOCATION (1) 

FINANCIAL 

FINANCIAL 

SINCE YEAR SINCE YEAR 

17.9.2009 31.12.2011 17.9.2009 31.12.2011 

Key management personnel 50% 50% 19.7% 19.7% 

(1) 

The Directors and Chief Executive Officer of the Company have not, since the implementation of the ESOS, been granted any options. 

DIRECTORS 

The Directors who have held office during the period since the date of the last report are as follows: 

Non-Executive Directors 











Sandip Das

MAXIS BERHAD 


103 

DIRECTORS’ BENEFITS 

During and at the end of the financial year, no arrangements subsisted to which the Company is a party, being arrangements with the 

object or objects of enabling Directors of the Company to acquire benefits by means of the acquisition of shares in, or debentures of, 

the Company or any other body corporate. 

Since the end of the previous financial year, no Director has received or become entitled to receive a benefit (other than remuneration 

received or due and receivable by the Directors as shown in Note 8 to the financial statements) by reason of a contract made by the 

Company or a related corporation with the Director or with a firm of which he is a member, or with a company in which he has a 

substantial financial interest. 

DIRECTORS’ INTERESTS 

According to the Register of Directors’ shareholdings, particulars of interests of the Directors who held office at the end of the 

financial year in shares in the Company are as follows: 

NUMBER OF ORDINARY SHARES OF RM0.10 EACH IN THE COMPANY 

AS AT 

AS AT 

1.1.2011 BOUGHT SOLD 31.12.2011 

Raja Tan Sri Dato’ Seri Arshad bin Raja Tun Uda 750,000 (1) 0 0 750,000 (1) 

Robert William Boyle 100,000 (2) 0 0 100,000 (2) 

Dato’ Mokhzani bin Mahathir 751,000 (3) 0 0 751,000 (3) 

Asgari bin Mohd Fuad Stephens 750,000 (1) 0 0 750,000 (1) 

Augustus Ralph Marshall 750,000 (1) 0 0 750,000 (1) 

Chan Chee Beng 750,000 0 0 750,000 

Sandip Das 750,000 (2) 0 0 750,000 (2) 

(1) 

Held through a nominee, namely CIMSEC Nominees (Tempatan) Sdn. Bhd. 

(2) 

Held through a nominee, namely CIMSEC Nominees (Asing) Sdn. Bhd. 

(3) 

Includes deemed interest of 1,000 shares in the Company held by spouse pursuant to Section 134(12)(c) of the Companies Act, 1965 

Other than as those disclosed above, according to the Register of Directors’ shareholdings, none of the Directors in office at the end of 

the financial year held any interest in shares and options over shares in the Company and its related corporations during the financial year. 

IMMEDIATE HOLDING AND ULTIMATE HOLDING COMPANIES 

The Directors regard Maxis Communications Berhad as the immediate holding company and Binariang GSM Sdn. Bhd. as the ultimate 

holding company. Both companies are incorporated and domiciled in Malaysia.

104 


DIRECTORS’ 

REPORT 

Continued 

STATUTORY INFORMATION ON THE FINANCIAL STATEMENTS 

Before the income statements, statements of comprehensive income and statements of financial position of the Group and of the 

Company were made out, the Directors took reasonable steps: 

(a) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of allowance for 

impairment and satisfied themselves that all known bad debts had been written off and that adequate allowance had been made 

for impairment; and 

(b) to ensure that any current assets, other than debts, which were unlikely to realise in the ordinary course of business, their values 

as shown in the accounting records of the Group and of the Company had been written down to an amount which they might 

be expected so to realise. 

At the date of this Report, the Directors are not aware of any circumstances: 

(a) which would render the amounts written off for bad debts or the amount of the allowance for impairment in the financial 

statements of the Group and of the Company inadequate to any substantial extent; or 

(b) which would render the values attributed to current assets in the financial statements of the Group and of the Company 

misleading; or 

(c) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the 

Company misleading or inappropriate. 

No contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve months after 

the end of the financial year which, in the opinion of the Directors, will or may affect the ability of the Group or of the Company to 

meet their obligations when they fall due. 

At the date of this Report, there does not exist: 

(a) any charge on the assets of the Group and of the Company which has arisen since the end of the financial year which secures the 

liability of any other person; or 

(b) any contingent liability of the Group and of the Company which has arisen since the end of the financial year. 

At the date of this Report, the Directors are not aware of any circumstances not otherwise dealt with in this Report or the financial 

statements which would render any amount stated in the financial statements misleading. 

In the opinion of the Directors: 

(a) the results of the Group’s and of the Company’s operations during the financial year were not substantially affected by any item, 

transaction or event of a material and unusual nature except for the recognition of tax credits amounting to RM352,347,000 as 

disclosed in Note 12 to the financial statements; and 

(b) there has not arisen in the interval between the end of the financial year and the date of this Report any item, transaction or event 

of a material and unusual nature likely to affect substantially the results of the operations of the Group or of the Company for the 

financial year in which this Report is made.

MAXIS BERHAD 


105 

SIGNIFICANT EVENTS SUBSEQUENT TO THE REPORTING DATE 

Significant events subsequent to the reporting date are disclosed in Note 39 to the financial statements. 

AUDITORS 

The auditors, PricewaterhouseCoopers, have expressed their willingness to continue in office. 

Signed on behalf of the Board of Directors in accordance with their resolution dated 10 April 2012. 

RAJA TAN SRI DATO’ SERI ARSHAD BIN RAJA TUN UDA 

DIRECTOR 

SANDIP DAS 

DIRECTOR 

Kuala Lumpur

106 


INCOME 

STATEMENTS 

For the financial year ended 31 December 2011 

GROUP 

COMPANY 

NOTE 2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 

Revenue 6 8,799,921 8,868,873 2,360,000 2,615,000 

Interconnect expenses, Universal 

Services Provision contributions 

and other direct cost of sales (2,762,978) (2,956,714) 0 0 

Gross profit 6,036,943 5,912,159 2,360,000 2,615,000 

Other income 13,730 41,421 2 0 

Administrative expenses (1,688,895) (1,565,535) (15,905) (16,728) 

Network operation costs (1,032,728) (977,951) 0 0 

Other expenses (97,347) (66,750) (7,688) (2,905) 

Profit from operations 7 3,231,703 3,343,344 2,336,409 2,595,367 

Finance income 11(a) 39,873 28,758 85,765 61,019 

Finance costs 11(b) (267,500) (239,600) (282,260) (220,118) 

Profit before tax 3,004,076 3,132,502 2,139,914 2,436,268 

Tax expenses 12 (473,237) (837,088) (827) (910) 

Profit for the financial year 2,530,839 2,295,414 2,139,087 2,435,358 

Attributable to: 



Earnings per share for profit attributable to the equity holders of the Company: 

2,530,839 2,295,414 

- Basic (sen) 13(a) 33.69 30.61 

- Diluted (sen) 13(b) 33.69^ * 

^ The diluted earnings per share is the same as basic earnings per share as the effect of dilutive potential ordinary shares is anti-dilutive. 

* As there were no dilutive potential ordinary shares as at 31 December 2010, diluted earnings per share is not shown. 

The notes on pages 116 to 196 form part of these financial statements.

MAXIS BERHAD 


107 


STATEMENTS OF 

COMPREHENSIVE INCOME 


GROUP 

COMPANY 

NOTE 2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 


Other comprehensive (expense)/income:** 

Currency translation differences 29(c) (30) 35 0 0 

Net change in cash flow hedge 29(c) (109,792) (98,857) (109,792) (98,857) 

Other comprehensive expense 

for the financial year (109,822) (98,822) (109,792) (98,857) 

Total comprehensive income 

for the financial year 2,421,017 2,196,592 2,029,295 2,336,501 

Attributable to: 



2,421,017 2,196,592 

** There is no income tax attributable to the components of other comprehensive income/(expense). 


108 


STATEMENTS OF 

FINANCIAL POSITION 

As at 31 December 2011 

GROUP 

COMPANY 

NOTE 2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 

ASSETS 

NON-CURRENT ASSETS 

Property, plant and equipment 15 4,971,074 5,007,046 0 0 

Intangible assets 16 11,059,649 11,019,419 0 0 

Investments in subsidiaries 17 0 0 35,013,428 35,012,760 

Loans to subsidiaries 17 0 0 1,358,792 1,522,717 

Available-for-sale investment 21 50 0 0 0 

Derivative financial instruments 22 3,201 0 3,201 0 

Deferred tax assets 23 120,870 95,906 0 0 

TOTAL NON-CURRENT ASSETS 16,154,844 16,122,371 36,375,421 36,535,477 

CURRENT ASSETS 

Inventories 24 110,249 214,098 0 0 

Receivables, deposits and prepayments 25 858,011 936,329 1,094 1,372 

Amount due from a subsidiary 17 0 0 175 0 

Amount due from a fellow subsidiary 20 0 10 0 0 

Amount due from immediate holding company 20 418 266 0 0 

Amounts due from related parties 26 16,428 13,792 0 0 

Tax recoverable 12,444 40,723 754 490 

Cash and cash equivalents 27 838,125 897,621 81,405 79,554 

TOTAL CURRENT ASSETS 1,835,675 2,102,839 83,428 81,416 

TOTAL ASSETS 17,990,519 18,225,210 36,458,849 36,616,893 


MAXIS BERHAD 


109 

GROUP 

COMPANY 

NOTE 2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 

LESS: CURRENT LIABILITIES 

Provisions for liabilities and charges 30 64,465 59,937 0 0 

Payables and accruals 31 2,828,255 3,105,357 1,816 1,608 

Amounts due to related parties 26 23,214 42,944 0 0 

Amounts due to subsidiaries 17 0 0 1,155 963 

Amounts due to fellow subsidiaries 20 246 1,203 0 0 

Amount due to immediate holding company 20 0 119 0 0 

Borrowings 32 1,463,950 13,201 1,450,104 0 

Taxation 5,735 100,367 0 0 

TOTAL CURRENT LIABILITIES 4,385,865 3,323,128 1,453,075 2,571 

NET CURRENT (LIABILITIES)/ASSETS (2,550,190) (1,220,289) (1,369,647) 78,845 

NON-CURRENT LIABILITIES 

Borrowings 32 4,409,118 5,060,667 4,387,411 5,043,647 

Provisions for liabilities and charges 30 93,675 126,536 0 0 

Payables and accruals 31 60,564 46,206 0 0 

Loan from a related party 26 35,668 33,205 0 0 

Derivative financial instruments 22 366,177 348,452 366,177 348,452 

Deferred tax liabilities 23 551,068 620,317 0 0 

TOTAL NON-CURRENT LIABILITIES 5,516,270 6,235,383 4,753,588 5,392,099 

NET ASSETS 8,088,384 8,666,699 30,252,186 31,222,223 

EQUITY 

Share capital 28 750,000 750,000 750,000 750,000 

Reserves 29 7,334,417 7,916,699 29,502,186 30,472,223 

Equity attributable to equity holders 

of the Company 8,084,417 8,666,699 30,252,186 31,222,223 

Non-controlling interest 3,967 0 0 0 

TOTAL EQUITY 8,088,384 8,666,699 30,252,186 31,222,223 


110 


STATEMENTS OF 

CHANGES IN EQUITY 


ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY 

RESERVE 

ARISING 

FROM 

MERGER REVERSE OTHER NON- 

NUMBER NOMINAL RELIEF ACQUISITION RESERVES RETAINED CONTROLLING TOTAL 

GROUP NOTE OF SHARES VALUE (NOTE 29(a)) (NOTE 29(b)) (NOTE 29(c)) EARNINGS TOTAL INTEREST EQUITY 

’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 

As at 1 January 2011 7,500,000 750,000 30,440,400 (22,728,901) (45,738) 250,938 8,666,699 0 8,666,699 

Profit for the financial year 0 0 0 0 0 2,526,872 2,526,872 3,967 2,530,839 

Other comprehensive expense 

for the financial year 0 0 0 0 (109,822) 0 (109,822) 0 (109,822) 

Total comprehensive (expense)/ 

income for the financial year 0 0 0 0 (109,822) 2,526,872 2,417,050 3,967 2,421,017 

Dividends for the financial 

year ended 2010 14 

- Fourth interim ordinary 0 0 0 0 0 (600,000) (600,000) 0 (600,000) 

- Final ordinary 0 0 (11,400) 0 0 (588,600) (600,000) 0 (600,000) 

Dividends for the financial 

year ended 2011 14 

- First interim ordinary 0 0 (600,000) 0 0 0 (600,000) 0 (600,000) 

- Second interim ordinary 0 0 (100,000) 0 0 (500,000) (600,000) 0 (600,000) 

- Third interim ordinary 0 0 (100,000) 0 0 (500,000) (600,000) 0 (600,000) 

Employee Share Option 

Scheme (“ESOS”) 

28(b) 

- Options granted 0 0 0 0 668 0 668 0 668 

As at 31 December 2011 7,500,000 750,000 29,629,000 (22,728,901) (154,892) 589,210 8,084,417 3,967 8,088,384 


MAXIS BERHAD 


111 

ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY 

RESERVE 

ARISING 

FROM 

MERGER REVERSE OTHER 

NUMBER NOMINAL RELIEF ACQUISITION RESERVES RETAINED TOTAL 

GROUP NOTE OF SHARES VALUE (NOTE 29(a)) (NOTE 29(b)) (NOTE 29(c)) EARNINGS EQUITY 

‘000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 

As at 1 January 2010 7,500,000 750,000 30,440,400 (22,728,901) 53,084 430,524 8,945,107 

Profit for the financial year 0 0 0 0 0 2,295,414 2,295,414 

Other comprehensive expense for the financial year 0 0 0 0 (98,822) 0 (98,822) 

Total comprehensive (expense)/ 

income for the financial year 0 0 0 0 (98,822) 2,295,414 2,196,592 

Dividends for the financial year ended 2009 14 

- Second interim ordinary 0 0 0 0 0 (450,000) (450,000) 

- Final ordinary 0 0 0 0 0 (225,000) (225,000) 


- First interim ordinary 0 0 0 0 0 (600,000) (600,000) 

- Second interim ordinary 0 0 0 0 0 (600,000) (600,000) 

- Third interim ordinary 0 0 0 0 0 (600,000) (600,000) 

As at 31 December 2010 7,500,000 750,000 30,440,400 (22,728,901) (45,738) 250,938 8,666,699 


112 


STATEMENTS OF 

CHANGES IN EQUITY 


Continued 

ISSUED AND FULLY PAID 

ORDINARY SHARES OF NON- 

RM0.10 EACH DISTRIBUTABLE DISTRIBUTABLE 

OTHER MERGER 

NUMBER NOMINAL RESERVES RELIEF RETAINED TOTAL 

COMPANY NOTE OF SHARES VALUE (NOTE 29(c)) (NOTE 29(a)) EARNINGS EQUITY 

’000 RM’000 RM’000 RM’000 RM’000 RM’000 

As at 1 January 2011 7,500,000 750,000 (45,783) 30,440,400 77,606 31,222,223 

Profit for the financial year 0 0 0 0 2,139,087 2,139,087 

Other comprehensive expense for the financial year 0 0 (109,792) 0 0 (109,792) 

Total comprehensive (expense)/income for the financial year 0 0 (109,792) 0 2,139,087 2,029,295 


- Fourth interim ordinary 0 0 0 0 (600,000) (600,000) 

- Final ordinary 0 0 0 (11,400) (588,600) (600,000) 


- First interim ordinary 0 0 0 (600,000) 0 (600,000) 

- Second interim ordinary 0 0 0 (100,000) (500,000) (600,000) 

- Third interim ordinary 0 0 0 (100,000) (500,000) (600,000) 

ESOS 

28(b) 

- Options granted 0 0 668 0 0 668 

As at 31 December 2011 7,500,000 750,000 (154,907) 29,629,000 28,093 30,252,186 

As at 1 January 2010 7,500,000 750,000 53,074 30,440,400 117,248 31,360,722 

Profit for the financial year 0 0 0 0 2,435,358 2,435,358 

Other comprehensive expense for the financial year 0 0 (98,857) 0 0 (98,857) 

Total comprehensive (expense)/income for the financial year 0 0 (98,857) 0 2,435,358 2,336,501 


- Second interim ordinary 0 0 0 0 (450,000) (450,000) 

- Final ordinary 0 0 0 0 (225,000) (225,000) 


- First interim ordinary 0 0 0 0 (600,000) (600,000) 

- Second interim ordinary 0 0 0 0 (600,000) (600,000) 

- Third interim ordinary 0 0 0 0 (600,000) (600,000) 

As at 31 December 2010 7,500,000 750,000 (45,783) 30,440,400 77,606 31,222,223 


MAXIS BERHAD 


113 


STATEMENTS OF 

CASH FLOWS 


GROUP 

COMPANY 

RESTATED 

NOTE 2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 

CASH FLOWS FROM OPERATING ACTIVITIES 


Adjustments for: 

Allowance for: 

- impairment of receivables, deposits 

and prepayments 37(b) 147,832 122,610 0 0 

- inventories obsolescence 22,669 13,424 0 0 

Amortisation of intangible assets 137,453 74,592 0 0 

Bad debts recovered (14,267) (9,351) 0 0 

Depreciation of property, plant and 

equipment 1,011,288 975,848 0 0 

Dividend income 0 0 (2,360,000) (2,615,000) 

ESOS expense 668 0 0 0 

Finance costs 267,500 239,600 282,260 220,118 

Finance income (39,873) (28,758) (85,765) (61,019) 

Loss/(gain) on disposal of property, 

plant and equipment 1,761 (839) 0 0 

Property, plant and equipment 

written off 40,647 22,673 0 0 

Provision for: 

- staff incentive scheme 49,314 49,699 0 0 

- site rectification and 

decommissioning works 901 47 0 0 

Reversal of allowance for: 

- impairment of receivables, deposits 

and prepayments 37(b) (12,335) (4,089) 0 0 

- inventories obsolescence (1,165) (7,826) 0 0 

Tax expenses 473,237 837,088 827 910 

Unrealised loss/(gain) on foreign 

exchange 8,264 (2,930) 1 0 

Write-back of provision for: 

- staff incentive scheme (166) (11,420) 0 0 


decommissioning works 0 (3,814) 0 0 

4,624,567 4,561,968 (23,590) (19,633) 


114 


STATEMENTS OF 

CASH FLOWS 


Continued 

GROUP 

COMPANY 

2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 

CASH FLOWS FROM OPERATING 

ACTIVITIES (continued) 

Payment under staff incentive scheme (44,206) (27,398) 0 0 

Payments for site rectification and 

decommissioning works (3,505) (1,865) 0 0 

Payment for ESOS – Equivalent Cash 

Consideration (5,064) (14,968) 0 0 

Operating cash flows before working capital 

changes 4,571,792 4,517,737 (23,590) (19,633) 

Changes in working capital: 

Inventories 82,345 (86,284) 0 0 

Receivables (43,562) (255,298) 309 (1,039) 

Payables (286,407) 608,791 32 (25,043) 

Related parties balances (22,366) 19,964 0 (2) 

Fellow subsidiaries balances (947) (50) 17 563 

Immediate holding company balances 4,793 22,193 0 (30) 

Cash flow from/(used in) operations 4,305,648 4,827,053 (23,232) (45,184) 

Dividends received 0 0 2,360,000 3,015,000 

Interest received 39,651 28,758 87,659 52,908 

Tax paid (633,803) (765,255) (1,091) (1,400) 

Net cash flow from operating activities 3,711,496 4,090,556 2,423,336 3,021,324 

CASH FLOWS FROM INVESTING ACTIVITIES 

Loans to subsidiaries 0 0 (472,200) (1,514,500) 

Loans repayment from a subsidiary 0 0 634,200 0 

Payments for handset subsidies (177,683) (75,146) 0 0 

Purchase of property, plant and equipment (988,685) (1,381,060) 0 0 

Purchase of available-for-sale investment (50) 0 0 0 

Proceeds from disposal of property, plant 

and equipment 492 991 0 0 

Net cash flow (used in)/from investing activities (1,165,926) (1,455,215) 162,000 (1,514,500) 


MAXIS BERHAD 


115 

GROUP 

COMPANY 

NOTE 2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 

CASH FLOWS FROM FINANCING ACTIVITIES 

Drawdown of borrowings 1,699,450 5,314,500 1,699,450 5,314,500 

Repayment of borrowing (1,000,000) 0 (1,000,000) 0 

Repayment of loan from immediate 

holding company 0 (4,992,009) 0 (3,807,850) 

Repayment of lease financing (16,052) (27,433) 0 0 

Loans documentation fees paid (15,830) (44,530) (15,830) (44,530) 

Interest paid (272,544) (255,182) (267,105) (231,497) 

Ordinary share dividends paid (3,000,000) (2,925,000) (3,000,000) (2,925,000) 

Net cash flow used in financing activities (2,604,976) (2,929,654) (2,583,485) (1,694,377) 

NET (DECREASE)/INCREASE IN 

CASH AND CASH EQUIVALENTS (59,406) (294,313) 1,851 (187,553) 

EFFECTS OF EXCHANGE RATE CHANGES (90) (134) 0 0 

CASH AND CASH EQUIVALENTS 

AT THE BEGINNING OF THE FINANCIAL YEAR 897,621 1,192,068 79,554 267,107 

CASH AND CASH EQUIVALENTS AT 

THE END OF THE FINANCIAL YEAR 27 838,125 897,621 81,405 79,554 


116 


NOTES TO THE 

FINANCIAL STATEMENTS 


1 GENERAL INFORMATION 

The principal activity of the Company is investment holding, whilst the principal activities of the Group, comprising the Company 

and its subsidiaries, are the provision of mobile, fixed line and international gateway telecommunications services as well 

as internet and broadband services, and corporate support functions for the Group. Details of the principal activities of the 

subsidiaries are shown in Note 18 to the financial statements. 

There have been no significant changes in the nature of the principal activities of the Group and of the Company during the 


The Directors regard Maxis Communications Berhad (“MCB”) as the immediate holding company and Binariang GSM Sdn. Bhd. 

as the ultimate holding company. Both companies are incorporated and domiciled in Malaysia. 

The address of the registered office of business of the Company is as follows: 





The address of the principal place of business of the Company is as follows: 

Level 8, 10-23, Menara Maxis 




2 BASIS OF PREPARATION 

The financial statements of the Group and of the Company have been prepared in accordance with the provisions of the Companies 

Act, 1965 and Financial Reporting Standards (“FRS”), Malaysian Accounting Standards Board (“MASB”) Approved Accounting 

Standards in Malaysia for Entities Other than Private Entities. The financial statements have been prepared under the historical 

cost convention except as disclosed in the summary of significant accounting policies in Note 3 to the financial statements. 

The preparation of financial statements in conformity with FRS requires the use of critical accounting estimates and assumptions 

that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the 

financial statements, and the reported amounts of revenues and expenses during the reported financial year. It also requires 

Directors to exercise their judgment in the process of applying the Group’s and the Company’s accounting policies. Although 

these estimates are based on the Directors’ best knowledge of current events and actions, actual results may differ. 

The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the 

financial statements, are disclosed in Note 4 to the financial statements.

MAXIS BERHAD 


117 

2 BASIS OF PREPARATION (CONTINUED) 

(i) Standards, amendments to published standards and Issues Committee (“IC”) Interpretations to existing standards 

that are effective and applicable to the Group and the Company 

The new standards, amendments and improvements to published standards and IC Interpretations that are effective for the 

Group’s and the Company’s financial year beginning on or after 1 January 2011 are as follows: 

• Revised FRS 3 “Business Combinations” 

• Revised FRS 127 “Consolidated and Separate Financial Statements” 

• Amendments to FRS 2 “Share-based Payment” and “Group Cash-settled Share-based Payment Transactions” 

• Amendments to FRS 5 “Non-current Assets Held-for-Sale and Discontinued Operations” 

• Amendments to FRS 7 “Financial Instruments: Disclosures – Improving Disclosures About Financial Instruments” 

• Amendments to FRS 138 “Intangible Assets” 

• IC Interpretation 4 “Determining Whether an Arrangement Contains a Lease” 

• Amendments to IC Interpretation 9 “Reassessment of Embedded Derivatives” 

• Improvements to FRSs (2010) 

The new standards, amendments and improvements to published standards and IC Interpretations do not have any significant 

impact on the accounting policies, financial results and position of the Group and the Company except for the following: 

• The revised FRS 3 “Business Combinations” (effective prospectively from 1 July 2010). The revised standard continues to 

apply the acquisition method to business combinations, with some significant changes. There is a choice on an acquisitionby-acquisition 

basis to measure the non-controlling interest in the acquiree at fair value or at the non-controlling interest’s 

proportionate share of the acquiree’s net assets. All acquisition-related costs should be expensed. The adoption of this 

standard has resulted in changes to the Group’s accounting policies as disclosed in Note 3(a) to the financial statements but 

does not have any impact on the financial results and position as the Group did not have any business combination during 

the current financial year. 

• The revised FRS 127 “Consolidated and Separate Financial Statements” (effective prospectively from 1 July 2010) requires 

the effects of all transactions with non-controlling interests to be recorded in equity if there is no change in control and 

these transactions will no longer result in goodwill or gains and losses. When this standard is effective, all earnings and 

losses of the subsidiary are attributed to the parent and the non-controlling interest, even if the attribution of losses to the 

non-controlling interest results in a debit balance in the shareholders’ equity. Profit or loss attribution to non-controlling 

interests for prior years is not restated. The standard also specifies the accounting when control is lost. Any remaining interest 

in the entity is remeasured to fair value, and a gain or loss is recognised in profit or loss. The Group has applied the revised 

FRS 127 prospectively to transactions with non-controlling interests from 1 January 2011. The adoption of this standard 

has resulted in changes to the Group’s accounting policies as disclosed in Note 3(a) to the financial statements but has no 

significant impact other than the Group has recognised RM3,967,000 of profit attributable to the non-controlling interest in 

the current financial year.

118 


NOTES TO THE 



Continued 


(ii) Standards and amendments to published standards that are applicable to the Group and the Company but not 

yet effective 

The Group and the Company will apply the new standards and amendments to standards in the following periods: 

(i) Financial year beginning on/after 1 January 2012 

The Group and the Company will be adopting the new International Financial Reporting Standards (“IFRS”) – compliant 

framework, Malaysian Financial Reporting Standards (“MFRS”). MFRS 1 “First-time Adoption of MFRS” provides for 

certain optional exemptions and certain mandatory exceptions for first-time MFRS adopters. Save for the presentation of 

three Statements of Financial Position in the first MFRS financial statements, the Group and the Company do not expect 

any significant impact on the Group’s and the Company’s financial results and position, and changes to the accounting 

policies of the Group and the Company arising from the adoption of this standard. 

• The MFRS 124 “Related Party Disclosures” (effective from 1 January 2012) removes the exemption to disclose 

transactions between government-related entities and the government, and all other government-related entities. The 

following new disclosures are now required for government-related entities: 

- The name of the government and the nature of the relationship; 

- The nature and amount of each individually significant transaction; and 

- The extent of any collectively significant transactions, qualitatively or quantitatively. 

This MFRS is not expected to have any material impact on the financial results and position of the Group and the 

Company. 

(ii) Financial year beginning on/after 1 January 2013 

• MFRS 9 “Financial Instruments” (effective from 1 January 2015) addresses the classification, measurement and 

recognition of financial assets and financial liabilities. It replaces the part of MFRS 139 that relates to classification and 

measurement of financial instruments. MFRS 9 requires financial assets to be classified into two measurement 

categories: those measured at fair value and those measured at amortised cost. The determination is made at initial 

recognition. The classification depends on the entity’s business model for managing its financial instruments and the 

contractual cash flow characteristics of the instrument. For financial liabilities, the standard retains most of the MFRS 139 

requirements. However, where the financial liabilities are designated at fair value through profit or loss using fair value 

option, the part of a fair value change due to an entity’s own credit risk is recorded in other comprehensive income rather 

than the income statement, unless this creates an accounting mismatch. The Group and the Company are currently 

assessing MFRS 9’s full impact. 

• MFRS 10 “Consolidated Financial Statements” (effective from 1 January 2013), which replaces part of MFRS 127 

“Consolidated and Separate Financial Statements” and all of IC Interpretation 112 “Consolidation – Special Purpose 

Entities”, build on existing principles by identifying the concept of control as the determining factor whether an 

entity should be included within the consolidated financial statements of the parent company. The standard provides 

additional guidance to assist in the determination of control where this is difficult to assess. The Group is currently 

assessing MFRS 10’s full impact. 

The remainder of MFRS 127 “Separate Financial Statements” (effective 1 January 2013) now contains accounting and 

disclosure requirements for investment in subsidiaries, joint ventures and associates only when an entity prepares separate 

financial statements. This MFRS does not have any significant impact on the financial results and position of the Group 

and the Company.

MAXIS BERHAD 


119 


(ii) Standards and amendments to published standards that are applicable to the Group and the Company but not 

yet effective (continued) 

(ii) Financial year beginning on/after 1 January 2013 (continued) 

• MFRS 12 “Disclosures of Interests in Other Entities” (effective from 1 January 2013) includes the disclosure requirements 

for all forms of interests in other entities, including joint arrangements, associates, special purpose vehicles and other off 

balance sheet vehicles. The Group and the Company are currently assessing MFRS 12’s full impact. 

• MFRS 13 “Fair Value Measurement” (effective from 1 January 2013) aims to improve consistency and reduce complexity 

by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements 

for use across MFRSs. The requirements do not extend the use of the fair value accounting but provide guidance on how 

it should be applied where its use is already required or permitted by other standards within MFRSs. The Group and the 

Company are currently assessing MFRS 13’s full impact. 

• MFRS 119 “Employee Benefits” (effective from 1 January 2013) was amended as follows: to eliminate the corridor 

approach and recognise all actuarial gains and losses in other comprehensive income as they occur; to immediately 

recognise all past service costs; and to replace interest cost and expected return on plan assets with a net interest amount 

that is calculated by applying the discount rate to the net defined benefit liability (asset). These amendments do not have 

any impact on the financial results and position of the Group and the Company. 

• Amendment to MFRS 7 “Financial Instruments: Disclosures” (effective from 1 January 2013) requires more extensive 

disclosures focusing on quantitative information about recognised financial instruments that are offset in the statement 

of financial position and those that are subject to master netting or similar arrangements irrespective of whether they 

are offset. The Group and the Company are currently assessing the impact of this amendment. 

• Amendments to MFRS 101 “Presentation of Items of Other Comprehensive Income” (effective from 1 July 2012) provide 

improvements to the presentation of items of other comprehensive income. The main change is the requirement to 

group items within other comprehensive income that will be reclassified to the income statement in subsequent 

periods separately, from items of other comprehensive income that will not. The amendments also reaffirm existing 

requirements that items of other comprehensive income and income statement can be presented as a single statement 

or two consecutive statements. Save for the presentation of other comprehensive income, these amendments are not 

expected to have any material impact on the financial results and position of the Group and the Company. 

• Amendment to MFRS 132 “Financial Instruments: Presentation” (effective from 1 January 2014) does not change the 

current offsetting model in MFRS 132. It clarifies the meaning of ‘currently has a legally enforceable right of set-off’ 

that the right of set-off must be available today (not contingent on a future event) and legally enforceable for all 

counterparties in the normal course of business. It clarifies that some gross settlement mechanisms with features that 

are effectively equivalent to net settlement will satisfy the MFRS 132 offsetting criteria. The Group and the Company are 

currently assessing the impact of this amendment.

120 


NOTES TO THE 



Continued 

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

Save for Notes 3(a) and 3(d)(ii) below, the following accounting policies have been applied consistently in dealing with items that 

are considered material in relation to the financial statements. 

Certain comparative information has been reclassified to conform with the current financial year’s presentation as disclosed in 

Note 37 to the financial statements. 

(a) Basis of consolidation 

The Group has adopted the following accounting policies arising from the adoption of the revised FRS 3 “Business 

Combinations” and revised FRS 127 “Consolidated and Separate Financial Statements” as disclosed in Note 2(i) to the 

financial statements for all business combinations occurring on or after 1 January 2011. The changes in the accounting 

policies are applied prospectively and there was no impact to the current financial year ended 31 December 2011 except for 

the recognition of RM3,967,000 on profit attributable to the non-controlling interest where all earnings and losses of the 

subsidiary were attributed to the parent and the non-controlling interest. 

(i) Subsidiaries 

Subsidiaries are all entities (including special purpose entities) over which the Group has the power to govern the 

financial and operating policies generally accompanying a shareholding of more than one-half of the voting rights. The 

existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing 

whether the Group controls another entity. The Group also assesses existence of control where it does not have more 

than 50% of the voting power but is able to govern the financial and operating policies by virtue of de-facto control. 

De-facto control may arise in circumstances where the size of the Group’s voting rights relative to the size and dispersion 

of holdings of other shareholders give the Group the power to govern the financial and operating policies. 

Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated 

from the date that control ceases. 

The Group applies the acquisition method to account for business combinations. The consideration transferred for the 

acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the 

acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or 

liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent 

liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group 

recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the 

non-controlling interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets. 

Acquisition-related costs are expensed as incurred.

MAXIS BERHAD 


121 

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

(a) Basis of consolidation (continued) 

(i) Subsidiaries (continued) 

If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s previously held equity 

interest in the acquiree is remeasured to fair value at the acquisition date through the income statement. 

Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date. 

Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability is 

recognised in accordance with FRS 139 either in income statement or as a change to other comprehensive income. 

Contingent consideration that is classified as equity is not remeasured, and its subsequent settlement is accounted for 

within equity. 

Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the fair value of noncontrolling 

interest over the net identifiable assets acquired and liabilities assumed. If this consideration is lower than the 

fair value of the net assets of the subsidiary acquired, the difference is recognised in the income statement. See 

accounting policy Note 3(d)(ii) on goodwill. 

Inter-company transactions, balances, income and expenses on transactions between Group companies are eliminated. 

Profits and losses resulting from inter-company transactions that are recognised in assets are also eliminated. Accounting 

policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the 

Group. 

All earnings and losses of the subsidiary are attributed to the parent and the non-controlling interests, even if the 

attribution of losses to the non-controlling interests results in a debit balance in the shareholders’ equity. Profit or loss 

attribution to non-controlling interests for prior years is not restated. 

Previously, contingent consideration in a business combination was recognised when it was probable that payment 

would be made. Acquisition-related costs were included as part of the cost of business combination. Any non-controlling 

interest in the acquiree was measured at the non-controlling interest’s proportionate share of the acquiree’s identifiable 

net assets. Any adjustment to the fair values of the subsidiary’s identifiable assets, liabilities and contingent liabilities 

relating to previously held interests of the Group was accounted for as a revaluation. 

Previously, where losses applicable to the non-controlling interests exceeded the non-controlling interests in the 

equity of a subsidiary, the excess, and any further losses applicable to the non-controlling interests, were charged against 

the Group’s interest. If the subsidiary subsequently reported profits, the Group’s interest was allocated all such profit 

until the non-controlling interest share of losses previously absorbed by the Group had been recovered.

122 


NOTES TO THE 



Continued 


(a) Basis of consolidation (continued) 

(ii) Changes in ownership interests in subsidiaries without change of control 

Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions 

– that is, as transactions with the owners in their capacity as owners. The difference between fair value of any 

consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in 

equity. Gains or losses on disposals to non-controlling interests are also recorded in equity. 

Previously, the Group applied a policy of treating transactions with non-controlling interests as transactions with parties 

external to the Group. Accordingly, disposals resulted in gains or losses and purchases resulted in the recognition 

of goodwill, being the difference between consideration paid and the relevant share of the carrying value of net assets 

of the subsidiary acquired. 

(iii) Disposal of subsidiaries 

When the Group ceases to have control, any retained interest in the entity is re-measured to its fair value at the date 

when control is lost, with the change in carrying amount recognised in the income statement. The fair value is the initial 

carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or 

financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity 

are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts 

previously recognised in other comprehensive income are reclassified to the income statement. 

(b) Foreign currencies 

(i) Functional and presentation currency 

Items included in the financial statements of each of the Group’s entities are measured using the currency of the 

primary economic environment in which the entity operates (the “functional currency”). These financial statements are 

presented in Ringgit Malaysia (“RM”), which is the Company’s functional and presentation currency. 

When there is a change in an entity’s functional currency, the entity shall apply the translation procedures applicable to 

the new functional currency prospectively from the date of the change. 

(ii) Transactions and balances 

Transactions in foreign currencies are translated to the respective functional currencies of the Group entities using the 

exchange rates prevailing at the date of the transactions. 

Monetary assets and liabilities in foreign currencies at the reporting date are translated into the functional currency at 

exchange rates ruling at the date. 

Exchange differences arising from the settlement of foreign currency transactions and the translation of monetary assets 

and liabilities denominated in foreign currencies at year end are recognised in the income statement.

MAXIS BERHAD 


123 


(b) Foreign currencies (continued) 

(iii) Group companies 

The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary 

economy) that have a functional currency different from the presentation currency are translated into the presentation 

currency as follows: 

• assets and liabilities for each statement of financial position presented are translated at the closing rate at the date 

of that statement of financial position; 

• income and expenses for each income statement are translated at average exchange rates (unless this average is not 

a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case 

income and expenses are translated at the rate on the dates of the transactions); and 

• all resulting exchange differences are recognised as a separate component of equity. 

On consolidation, exchange differences arising from the translation of the net investment in foreign operations are taken 

to shareholders’ equity. When a foreign operation is disposed of, exchange differences that were recorded in equity are 

recognised in the income statement as part of the gain or loss on sale. 

(iv) Closing rates 

The principal closing rates used in translation of foreign currency amounts were as follows: 

FOREIGN CURRENCIES 2011 2010 

RM 

RM 

1 Euro (“EURO”) 4.10 4.09 

1 Pound Sterling (“GBP”) 4.93 4.76 

1 Singapore Dollar (“SGD”) 2.45 2.40 

1 Special Drawing Rights (“SDR”) * 4.86 4.72 

1 United States Dollar (“USD”) 3.17 3.09 

100 Indian Rupee (“INR”) 5.97 6.87 

100 Indonesian Rupiah (“IDR”) 0.04 0.03 

* Represents the closing international accounting settlement rate with international carriers. 

(c) Property, plant and equipment 

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Cost includes 

expenditure that is directly attributable to the acquisition of property, plant and equipment. The cost of certain property, 

plant and equipment items include the costs of dismantling and removing the item and restoring the sites on which these 

items are located. These costs are due to obligations incurred either when the items were installed or as a consequence of 

having used these items during a particular period.

124 


NOTES TO THE 



Continued 


(c) Property, plant and equipment (continued) 

Certain telecommunication assets are stated at the amount of cash or cash equivalent that would have to be paid if the same 

or an equivalent asset was acquired. Included in telecommunications equipment are purchased computer software 

costs which are integral to such equipment. 

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when 

it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be 

measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged 

to the income statement during the year in which they are incurred. 

Freehold land is not depreciated as it has an infinite life. 

Leasehold lands and buildings held for own use are classified as operating or finance leases in the same way as leases of other 

assets. 

Long-term leasehold land is land with a remaining lease period exceeding 50 years. Leasehold land is amortised over the lease 

term on a straight line method, summarised as follows: 

Long-term leasehold land 

Short-term leasehold land 

77 – 90 years 

50 years 

All property, plant and equipment are depreciated on the straight line method to write off the cost of each category of assets 

to its residual value over its estimated useful life, summarised as follows: 

Buildings 

Telecommunications equipment 

Submarine cables (included within telecommunications equipment) 

Site decommissioning works 

(included within telecommunications equipment) 

Motor vehicles 

Office furniture, fittings and equipment 

42 – 50 years 

2 – 20 years* 

10 – 25 years 

15 years 

5 years 

3 – 7 years 

* In the previous financial year, the useful lives of the telecommunications equipment were estimated at 4 – 20 years. The change to the estimated 

useful lives arises due to the newly acquired telecommunications equipment for the Home services segment which is expected to have a shorter estimated 

useful life. 

Capital work-in-progress comprising mainly telecommunications equipment, submarine cables and renovations are not 

depreciated until they are ready for their intended use. 

Residual values and useful lives are reassessed and adjusted, if appropriate, at each reporting date. 

At each reporting date, the Group assesses whether there is any impairment. Where an indication of impairment exists, the 

carrying amount of the asset is assessed and written down immediately to its recoverable amount. See accounting policy 

Note 3(g)(i) on impairment of non-financial assets. 

Gains and losses on disposals are determined by comparing proceeds with carrying amounts and are included in the income 

statement.

MAXIS BERHAD 


125 


(d) Intangible assets 

(i) Acquired telecommunication licences with allocated spectrum rights 

The Group acquires other intangible assets either as part of a business combination or through separate acquisition. 

Intangible assets acquired in a business combination are recorded at their fair value at the date of acquisition 

and recognised separately from goodwill. On initial acquisition, management judgment is applied to determine 

the appropriate allocation of purchase consideration to the assets being acquired, including goodwill and identifiable 

intangible assets. 

Intangible assets that are considered to have a finite life are amortised on a straight line basis over the period of 

expected benefit. Intangible assets that are considered to have an infinite economic useful life are not amortised but 

tested for impairment in accordance with Note 3(g)(i) on an annual basis, or where an indication of impairment exists. 

The acquired intangible assets include telecommunication licences with allocated spectrum rights which have infinite 

economic useful life. 

Management assesses the infinite economic useful life assumption applied to the acquired intangible assets annually. 

(ii) Goodwill 

Goodwill arises on the acquisitions of subsidiaries and it represents the excess of the fair values of considerations 

transferred for purchase of subsidiaries or businesses, the amount of any non-controlling interest in the acquiree and the 

acquisition-date fair value of any previously held equity interest in the acquiree over the fair value of the net identifiable 

assets acquired at the date of acquisition. 

Previously, goodwill represented the excess of the cost of the acquisition over the Group’s interest in the fair value of the 

net identifiable assets, liabilities and contingent liabilities of the acquiree at the date of acquisition. 

Goodwill is measured at cost less any accumulated impairment losses. Negative goodwill is recognised immediately in 

the income statement. 

Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. 

Goodwill is allocated to cash-generating units for the purpose of impairment testing and is tested annually for 

impairment or more frequently if events or changes in circumstances indicate that it might be impaired. See accounting 

policy Note 3(g)(i) on impairment of non-financial assets. Each cash-generating unit or a group of cash-generating units 

represents the lowest level within the Group at which goodwill is monitored for internal management purposes and 

which are expected to benefit from the synergies of the combination. 

(iii) Handset subsidies 

Expenditures incurred in providing the customer a free or subsidised handset, provided the customer signs a noncancellable 

contract for a predetermined contractual period, are capitalised as intangible assets and amortised over 

the contractual period on a straight line method. Handset subsidies are assessed at each reporting date whether there 

is any indication that the handset subsidies may be impaired. See accounting policy Note 3(g)(i) on impairment of nonfinancial 

assets.

126 


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Continued 


(e) Investments in subsidiaries 

Investments in subsidiaries are stated at cost plus the fair value of share options granted to employees of the subsidiaries over 

the vesting period deemed as capital contribution. See accounting policy Note 3(t)(iii) on share-based compensation. Where 

an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its 

recoverable amount. See accounting policy Note 3(g)(i) on impairment of non-financial assets. 

(f) Financial instruments 

A financial instrument is any contract that gives rise to both a financial asset of one enterprise and a financial liability or equity 

instrument of another enterprise. 

A financial asset is any asset that is cash, a contractual right to receive cash or another financial asset from another enterprise, 

a contractual right to exchange financial instruments with another enterprise under conditions that are potentially favourable, 

or an equity instrument of another enterprise. 

A financial liability is any liability that is a contractual obligation to deliver cash or another financial asset to another enterprise, 

or to exchange financial instruments with another enterprise under conditions that are potentially unfavourable. 

(i) Classification and measurement 

Financial assets 

The Group classifies its financial assets in the following categories: at fair value through profit or loss, held-to-maturity, 

loans and receivables, and available-for-sale. The classification depends on the purpose for which the financial assets 

were acquired. Management determines the classification of its financial assets at initial recognition. 

The Group does not hold any financial assets carried at fair value through profit or loss and held-to-maturity. 

Financial assets are classified as current assets; except for maturities greater than 12 months after the reporting date, in 

which case they are classified as non-current assets. 

Loans and receivables 

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in 

an active market. Financial assets in this category are initially recognised at fair value plus transaction costs and 

subsequently carried at amortised cost using the effective interest method. Changes in the carrying value of these assets 

are recognised in the income statement. 

The Group’s loans and receivables comprise receivables (including inter-companies and related parties balances), cash 

and cash equivalents in the statements of financial position. 

Available-for-sale 

Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any 

of the other categories. Financial assets in this category are initially recognised at fair value plus transaction costs and 

subsequently, at fair value. Any gains or losses from changes in fair value of the financial assets are recognised in other 

comprehensive income, except that impairment losses, foreign exchange gains and losses on monetary instruments, 

interest and dividends are recognised in the income statement. The cumulative gain or loss previously recognised in 

other comprehensive income is reclassified from equity to the income statement as a reclassification adjustment when 

the financial asset is derecognised.

MAXIS BERHAD 


127 


(f) Financial instruments (continued) 

(i) Classification and measurement (continued) 

Financial assets (continued) 

Investments in equity instruments for which the fair value cannot be reliably measured are recognised at cost less 

impairment loss. 

The Group’s available-for-sale financial asset comprises investment in unquoted shares. 

Financial liabilities 

The Group classifies its financial liabilities in the following categories: at fair value through profit or loss, other financial 

liabilities and financial guarantee contracts. Management determines the classification of its financial liabilities at initial 

recognition. 

The Group does not hold any financial liabilities carried at fair value through profit or loss and financial guarantee 

contracts. 

Other financial liabilities are non-derivative financial liabilities. Other financial liabilities are initially recognised at fair value 

plus transaction costs and subsequently carried at amortised cost using the effective interest method. Changes in the 

carrying value of these liabilities are recognised in the income statement. 

The Group’s other financial liabilities comprise payables (including inter-companies and related parties balances) 

and borrowings in the statements of financial position. Financial liabilities are classified as current liabilities; except 

for maturities greater than 12 months after the reporting date, in which case they are classified as non-current liabilities. 

(ii) Recognition of financial assets and financial liabilities 

Financial assets and financial liabilities are recognised when the Group becomes party to the contractual provisions of 

the instrument. 

(iii) Derecognition of financial assets and financial liabilities 

Financial assets are derecognised when the risks and rewards relating to the financial assets have expired or have been 

fully transferred or have been partially transferred with no control over the same. 

Financial liabilities are derecognised when the liability is either discharged, cancelled, has expired or has been 

restructured with substantially different terms. 

(iv) Offsetting of financial assets and financial liabilities 

Financial assets and financial liabilities are offset and the net amount reported in the statements of financial position 

when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net 

basis, or realise the net asset and settle the liability simultaneously.

128 


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Continued 


(g) Impairment of assets 

(i) Non-financial assets 

Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets 

that have a finite economic useful life are subject to amortisation and are reviewed for impairment whenever events or 

changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised 

for the amount by which the carrying amount of the asset exceeds its recoverable amount. The recoverable amount is 

the higher of an asset’s fair value less costs to sell and value in use. For the purpose of assessing impairment, assets are 

grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Nonfinancial 

assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at 

each reporting date. 

Any impairment loss is charged to the income statement. Impairment losses on goodwill are not reversed. In respect of 

other assets, any subsequent increase in recoverable amount is recognised in the income statement to the extent that 

the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation 

and amortisation, if no impairment loss had been recognised. 

(ii) Financial assets 

Financial assets carried at amortised cost 

Financial assets are impaired when there is objective evidence as a result of one or more events that the present value 

of estimated discounted future cash flows is lower than the carrying value. Any impairment losses are recognised 

immediately in the income statement. 

Financial assets are continuously monitored and allowances applied against financial assets consist of both specific 

impairments and collective impairments based on the Group’s historical loss experiences for the relevant aged category 

and taking into account general economic conditions. Historical loss experience allowances are calculated by line of 

business in order to reflect the specific nature of the financial assets relevant to that line of business. 

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to 

an event occurring after the impairment was recognised, the reversal of the previously recognised impairment loss is 

recognised in the income statement. 

Financial assets classified as available-for-sale 

Significant or prolonged decline in fair value below cost and significant financial difficulties of the issuer or obligor are 

considerations to determine whether there is objective evidence that investment securities classified as availablefor-sale 

financial assets are impaired. If an available-for-sale financial asset is impaired, an amount comprising 

the difference between its cost (net of any principal payment and amortisation) and its current fair value, less 

any impairment loss previously recognised in income statement, is transferred from equity to income statement. 

Impairment losses in the income statement on available-for-sale equity investments are not reversed through the income 

statement in the subsequent period. Increase in fair value, if any, subsequent to impairment loss is recognised in other 

comprehensive income.

MAXIS BERHAD 


129 


(h) Derivative financial instruments and hedging activities 

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently 

remeasured at their fair value. The method of recognising the resulting gain or loss depends on whether the derivative is 

designated as a hedging instrument, and if so, the nature of the item being hedged. 

The Group designates and documents at the inception of the transaction the relationship between hedging instruments 

and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. 

The Group assesses both at hedge inception and on an ongoing basis, whether the derivatives that are used in hedging 

transactions are highly effective in offsetting changes in fair values or cash flows of hedged items and applies hedge 

accounting only where effectiveness tests are met on both a prospective and retrospective basis. The full fair value of a 

hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more 

than 12 months, and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. 

The Group does not have any fair value hedges and net investment hedges. 

Cash flow hedge 

The Group uses cash flow hedges to mitigate the risk of variability of future cash flows attributable to foreign currency and 

interest rate fluctuations over the hedging period on the foreign currency borrowings. Where a cash flow hedge qualifies for 

hedge accounting, the effective portion of gains and losses on remeasuring the fair value of the hedging instrument 

is recognised directly in equity in the cash flow hedging reserve until such time as the hedged items affect profit or loss, 

then the gains or losses are transferred to the income statement. Gains or losses on any portion of the hedge determined 

to be ineffective are recognised immediately in the income statement. The application of hedge accounting will create some 

volatility in equity reserve balances. 

Where a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the criteria for hedge 

accounting, any cumulative gains or losses existing in equity at that time remain in equity and are recognised when the 

forecast transaction is ultimately recognised in the income statement. Where a forecast transaction is no longer expected to 

occur, the cumulative gains or losses that were reported in equity are immediately transferred to the income statement. 

(i) Fair value estimates 

The fair value of the financial assets, financial liabilities and derivative financial instruments is estimated for recognition and 

measurement or for disclosure purposes. 

In assessing the fair value of financial instruments, the Group makes certain assumptions and applies the estimated 

discounted value of future cash flows to determine the fair value of financial instruments. The fair values of financial assets 

and financial liabilities are estimated by discounting future cash flows at the current interest rate available to the respective 

companies. 

The face values for financial assets and financial liabilities with a maturity of less than one year are assumed to be 

approximately equal to their fair values. 

For derivative financial instruments that are measured at fair value, the fair values are determined using a valuation technique 

which utilises data from recognised financial information sources. Assumptions are based on market conditions existing at 

each reporting date. The fair value is calculated as the present value of estimated future cash flow using an appropriate 

market based yield curve.

130 


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Continued 


(j) Inventories 

Inventories, which comprise telecommunications components, incidentals and devices, are stated at the lower of cost and net 

realisable value. Cost includes the actual cost of materials and incidentals in bringing the inventories to their present 

location and condition, and is determined on a weighted average basis. Net realisable value is the estimated selling price in 

the ordinary course of business, less the estimated costs of completion and selling expenses. 

(k) Receivables 

Receivables are carried at invoice amount and/or income earned less an allowance for impairment. The allowance is 

established when there is objective evidence that the Group will not be able to collect all amounts due according to 

the original terms of receivables. When the debt becomes uncollectible, it is written off against the allowance account. 

Subsequent recoveries of amounts previously written off are recognised in the income statement. 

(l) Cash and cash equivalents 

Cash and cash equivalents comprise cash on hand, deposits held at call with licensed banks, other short-term, highly liquid 

investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are included within 

borrowings in current liabilities on the statements of financial position. For the purposes of the statements of cash flows, cash 

and cash equivalents are presented net of pledged deposits. 

(m) Share capital 

(i) Classification 

Ordinary shares and redeemable preference shares with discretionary dividends are classified as equity. Other shares are 

classified as equity and/or liability according to the economic substance of the particular instrument. Distributions 

to holder of a financial instrument classified as an equity instrument are charged directly to equity. 

(ii) Share issue costs 

External costs directly attributable to the issue of new shares are deducted, net of tax, against proceeds and shown in 

equity. 

(iii) Dividends to shareholders of the Company 

(n) Payables 

Dividend distribution to the Company’s shareholders is recognised as a liability in the period they are declared. 

Payables, including accruals, represent liabilities for goods received and services rendered to the Group prior to the end of the 

financial year and which remain unpaid. Payables are classified as current liabilities if payment is due within one year or less. 

If not, they are presented as non-current liabilities. 

Payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest 

method.

MAXIS BERHAD 


131 


(o) Borrowings 

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are 

capitalised as part of the cost of the assets. Other borrowing costs are recognised as an expense in the income statement 

when incurred. 

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable 

that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the 

extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a 

prepayment for liquidity services and amortised over the period of the facility to which it relates. 

Interest, dividends, losses and gains relating to a financial instrument, or a component part, classified as a liability is reported 

within finance cost in the income statement. 

Borrowings are classified as current liabilities if payment is due within one year or less. If not, they are presented as noncurrent 

liabilities. 

(i) Borrowings in a designated hedging relationship 

Borrowings subject to cash flow hedges are recognised initially at fair value based on the applicable spot price plus any 

transaction costs that are directly attributable to the issue of borrowing. These borrowings are subsequently carried at 

amortised costs, translated at applicable spot exchange rate at reporting date. Any difference between the final amount 

paid to discharge the borrowing and the initial proceeds is recognised in the income statement over the borrowing 

period using the effective interest method. 

Currency gains or losses on the borrowings are recognised in the income statement, along with the associated gains or losses 

on the hedging instrument, which have been transferred from the cash flow hedging reserve to the income statement. 

(ii) Borrowings not in a designated hedging relationship 

Borrowings not in a designated hedging relationship are initially recognised at fair value plus transaction costs that 

are directly attributable to the issue of borrowing. These borrowings are subsequently carried at amortised costs. Any 

difference between the final amount paid to discharge the borrowing and the initial proceeds is recognised in the income 

statement over the borrowing period using the effective interest method. 

(p) Provisions for liabilities and charges 

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, when 

it is probable that an outflow of resources will be required to settle the obligation and when a reliable estimate of the 

amount can be made. Provisions are measured at the present value of the expenditures expected to be required to settle 

the obligation by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments 

of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time 

is recognised as interest expense. 

(i) Site rectification and decommissioning works 

Provision for site rectification works is based on management’s best estimate and the past trend of costs for rectification 

works to be carried out to fulfil new regulatory guidelines and requirements imposed after network cell sites were built.

132 


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Continued 


(p) Provisions for liabilities and charges (continued) 

(i) Site rectification and decommissioning works (continued) 

Provision for decommissioning works is the estimated costs of dismantling and removing the structures on identified sites 

and restoring these sites. This obligation is incurred either when the items are installed or as a consequence of having 

used the items during a particular period. 

(ii) Network construction costs and settlements 

Provisions for network construction costs and settlements are made in respect of network construction projects which 

are under notices of termination, legal claims, negotiations for settlements and costs in respect of obligations under 

network construction contracts. 

(iii) Staff incentive scheme 

Provision for staff incentive scheme is based on management’s best estimate of the amount payable as at reporting date 

based on the performance of individual employees and financial performance of the Group. 

(q) Income taxes 

The tax expense for the period comprises current and deferred tax. Tax is recognised in income statement except to the extent 

that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised 

in other comprehensive income or directly in equity, respectively. 

Current tax expenses are determined according to the tax laws of each jurisdiction in which the Group operates and include 

all taxes based upon the taxable profits (including withholding taxes payable by foreign subsidiaries on distribution of 

retained earnings to companies in the Group), and real property gains taxes payable on disposal of properties. 

Deferred tax is recognised in full, using the liability method, on temporary differences arising between the amounts 

attributed to assets and liabilities for tax purposes and their carrying amounts in the financial statements. However, deferred 

tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business 

combination that at the time of the transaction affects neither accounting nor taxable profit or loss. 

Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which 

the deductible temporary differences or unused tax losses can be utilised. 

Deferred tax is recognised on temporary differences arising on investments in subsidiaries except where the timing of the 

reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the 

foreseeable future. 

Deferred tax is determined using tax rates (and tax laws) that have been enacted or substantively enacted by the reporting 

date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled. 

The measurement of deferred tax liabilities and deferred tax assets shall reflect the tax consequences that would follow from 

the manner in which the entity expects, at the reporting date, to recover or settle the carrying amount of its assets and 

liabilities.

MAXIS BERHAD 


133 


(r) Finance leases and hire purchase agreements 

Leases and hire purchases of property, plant and equipment where the Group assumes substantially all benefits and risks of 

ownership are classified as finance leases. 

Finance leases are capitalised at the inception of the lease at the lower of the fair value and the present value of the minimum 

lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate of 

interest on the finance lease balance outstanding. The corresponding rental obligations, net of finance charges, are included 

in borrowings. The interest element of the finance charge is charged to the income statement over the lease period so as to 

produce a constant periodic rate of interest on the remaining balance of the liability for each period. 

Property, plant and equipment acquired under finance leases or hire purchase agreements are depreciated over the shorter 

of the estimated useful life of the asset and the lease term. 

(s) Operating leases 

Leases of assets where a significant portion of risks and rewards of ownership are retained by the lessor are classified as 

operating leases. Payments made under operating leases are charged to the income statement on a straight line basis over 

the lease period. 

(t) Employee benefits 

(i) Short-term employee benefits 

Wages, salaries, paid annual leave, bonuses and non-monetary benefits are accrued in the financial year in which 

the associated services are rendered by employees including full-time Executive Directors of the Group. The Group 

recognises a provision where contractually obliged or where there is a past practice that has created a constructive 

obligation. 

(ii) Post-employment benefits 

Defined contribution plans 

A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity and 

will have no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to 

pay all employee benefits relating to employee service in the current and prior periods. 

The Group’s contributions to defined contribution plans are charged to the income statement in the period to which they 

relate. Once the contributions have been paid, the Group has no further payment obligations. 

(iii) Share-based compensation 

The Group operates an equity-settled, share-based compensation plan for eligible employees and directors of the Group 

and of the Company, pursuant to the Employee Share Option Scheme (“ESOS”). Where the Company pays for services 

of its employees using the options, the fair value of the employee services rendered in exchange for the grant of the 

share option is recognised as an expense in the income statement over the vesting periods of the grants, with the 

corresponding increase in equity.

134 


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Continued 


(t) Employee benefits (continued) 

(iii) Share-based compensation (continued) 

The total amount to be expensed over the vesting period is determined by reference to the fair value of the option at 

grant date and the number of share options to be vested by the vesting date. At each reporting date, the Group revises its 

estimate of the number of options that are expected to vest by the vesting date. Any revision of this estimate is included 

in the income statement and a corresponding adjustment to equity over the remaining vesting period. 

The fair value of employee share options is measured using a modified Black Scholes model. Measurement inputs include 

share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average 

historical volatility adjusted for changes expected due to publicly available information), weighted average expected life 

of the instruments (based on maturity of the options), expected dividends and the risk-free interest rate (based on data 

from recognised financial information sources). Non-market vesting conditions attached to the transactions are not taken 

into account in determining fair value. 

When share options are exercised, the proceeds received from the exercise of the share options together with the 

corresponding share options reserve, net of any directly attributable transactions costs are transferred to share capital 

(nominal value) and share premium. If the share options expire or lapse, the corresponding share options reserve 

attributable to the share options is transferred to retained earnings. 

In the separate financial statements of the Company, the grant by the Company of options over its equity instruments 

to the employees of subsidiary undertakings in the Group is treated as a capital contribution. The fair value of employee 

services received, measured by reference to the grant date fair value, is recognised over the vesting period as an increase 

to investment in subsidiary undertakings, with a corresponding credit to equity. 

(u) Revenue recognition 

Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary 

course of the Group’s activities. Revenue is shown net of service tax, returns, rebates, discounts and after eliminating sales 

within the Group. 

The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic 

benefits will flow to the entity and specific criteria have been met for each of the Group’s activities as described below. The 

amount of revenue is not considered to be reliably measurable until all contingencies relating to the sale have been resolved. 

The Group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction 

and the specifics of each arrangement. 

(i) Telecommunications revenue 

Revenues of mobile postpaid services and fixed line services are recognised at the time of customer usage and when 

services are rendered. Service discounts and incentives are accounted as a reduction of revenue when granted. 

Unutilised amounts on certain mobile postpaid rate plans are deferred up to one month. Unutilised amounts exceeding 

one month are recognised as breakage revenue.

MAXIS BERHAD 


135 


(u) Revenue recognition (continued) 

(i) Telecommunications revenue (continued) 

Revenue of mobile prepaid services comprises sales of starter packs and prepaid top-up tickets. Revenue from sales of 

starter packs is recognised at the point of sale to third parties while the revenue from the preloaded talk time within the 

pack is recognised when services are rendered. Revenue from sales of prepaid top-up tickets is recognised when services 

are rendered. The credits on preloaded talk time within the starter packs and prepaid top-up tickets can be deferred up 

to the point of customer churn, after which such amounts are recognised as revenue. 

Unutilised credits of prepaid top-up tickets sold to customers and distributors and unutilised airtime on certain postpaid 

rate plans which have been deferred as described above are recognised as deferred income. 

Revenue for provision of network facilities, public switched services, internet services and internet application services 

are recognised at the time of customer usage and when services are rendered. Service discounts and incentives are 

accounted as a reduction of revenue when granted. 

Revenue earned from carriers for international gateway services is recognised at the time the calls occur and when 

services are rendered. 

Revenue from the sale of device is recognised upon the transfer of significant risks and rewards of ownership of the 

goods to the customer which generally coincides with delivery and acceptance of the goods sold. 

Where the Group’s role in a transaction is that of a principal, revenue is recognised on a gross basis. This requires revenue 

to comprise the gross value of the transaction billed to the customer, after trade discounts, with any related expenditure 

charged as an operating cost. Where the Group’s role in a transaction is that of an agent, revenue is recognised on a net 

basis and represents the margin earned. 

(ii) Dividend income 

Dividend income is recognised when the Group’s right to receive payment is established. 

(iii) Interest income 

Interest income is recognised on a time proportion basis, taking into account the principal outstanding and the effective 

interest rate over the period to maturity, when it is determined that such income will accrue to the Group. 

(v) Government grants 

As a Universal Service Provider (“USP”), the Group is entitled to claim certain qualified expenses from the relevant authorities 

in relation to USP projects. The claim qualifies as a government grant and is recognised at its fair value where there is 

reasonable assurance that the grant will be received and the Group will comply with all the attached conditions. 

Government grants relating to costs are deferred and recognised in the income statement over the financial period necessary 

to match them with the costs they are intended to compensate. 

Government grants relating to the purchase of assets are included as deferred income and are credited to the income 

statement on a straight line basis over the expected useful lives of the related assets.

136 


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Continued 


(w) Contingent liabilities 

The Group does not recognise a contingent liability but discloses its existence in the financial statements. A contingent 

liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence of one or 

more uncertain future events beyond the control of the Group or a present obligation that is not recognised because it is 

not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in the 

extremely rare circumstance where there is a liability that cannot be recognised because it cannot be measured reliably. 

In the acquisition of subsidiaries by the Group under a business combination, the contingent liabilities assumed are measured 

initially at their fair value at the acquisition date, irrespective of the extent of any non-controlling interests. 

The Group recognises separately the contingent liabilities of the acquiree as part of allocating the cost of a business 

combination where their fair values can be measured reliably. Where the fair values cannot be measured reliably, the resulting 

effect will be reflected in the goodwill arising from the acquisition. 

Subsequent to the initial recognition, the Group measures the contingent liabilities that are recognised separately at the date 

of acquisition at the higher of the amount that would be recognised in accordance with the provisions of FRS 137 and the 

amount initially recognised less, when appropriate, cumulative amortisation recognised in accordance with FRS 118. 

(x) Segment reporting 

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decisionmakers. 

The chief operating decision-makers comprise the Directors, Chief Executive Officer, Chief Financial Officer and 

Joint Chief Operating Officers. The chief operating decision-makers are responsible for allocating resources, assessing 

performance of the operating segments and making strategic decisions. 

Segment revenues and expenses are those amounts resulting from the operating activities of a segment that are directly 

attributable to the segment and the relevant portion that can be allocated on a reasonable basis to the segment. Segment 

revenues and expenses are determined before intragroup balances and intragroup transactions are eliminated as part of the 

consolidation process, except to the extent that such intragroup balances and transactions are between group companies 

within a single segment. 

4 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS 

Estimates and judgments are continually evaluated by the Directors and are based on historical experience and other factors, 

including expectations of future events that are believed to be reasonable under the circumstances. 

Critical accounting estimates and assumptions 

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, rarely 

equal the related actual results. To enhance the information content of the estimates, certain key variables that are anticipated 

to have material impact on the Group’s results and financial position are tested for sensitivity to changes in the underlying 

parameters. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts 

of assets and liabilities within the next financial year are outlined below. 

(a) Intangible assets 

The telecommunications licences with allocated spectrum rights are not subject to amortisation and are tested annually for 

impairment as the Directors are of the opinion that the licences can be renewed in perpetuity at negligible cost and the 

associated spectrum rights, similar to land, have an infinite economic useful life. Correspondingly, deferred tax has not been 

recognised.

MAXIS BERHAD 


137 

4 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS (CONTINUED) 

Critical accounting estimates and assumptions (continued) 

(a) Intangible assets (continued) 

The estimated economic useful life reflects the Group’s expectation of the period over which the Group will continue 

to recover benefits from the licence. 

The economic useful life is periodically reviewed, taking into consideration such factors as changes in technology and 

regulatory environment. 

(b) Estimated useful lives of property, plant and equipment 

The Group reviews annually the estimated useful lives of property, plant and equipment based on factors such as business 

plans and strategies, expected level of usage and future technological developments. It is possible that future results of 

operations could be materially affected by changes in these estimates brought about by changes in the factors mentioned. 

A reduction in the estimated useful lives of property, plant and equipment would increase the recorded depreciation and 

decrease the carrying value of property, plant and equipment. See Note 15 to the financial statements for the impact on the 

changes in the estimated useful lives of property, plant and equipment. 

(c) Provisions for liabilities and charges 

The Group recognises provisions for liabilities and charges when it has a present legal or constructive obligation arising as a 

result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation and a 

reliable estimate can be made. The recording of provision requires the application of judgments about the ultimate resolution 

of these obligations. As a result, provisions are reviewed at each reporting date and adjusted to reflect the Group’s current 

best estimate. See Note 30 to the financial statements for the impact on change in estimate in relation to the provision for 

site rectification and decommissioning works. 

5 SEGMENT REPORTING 

During the financial year, an additional reportable operating segment, Home services, which was previously included in the Fixed 

line services segment has been reported as a separate reportable operating segment in line with the internal reporting provided 

to the chief operating decision-makers. Fixed line services is now reported as Enterprise fixed services. The comparative segment 

information for the financial year ended 31 December 2010 has been restated to conform with the segment reporting presented 

in the current financial year and the restatement of comparative information is disclosed in Note 37(a) to the financial statements. 

Arising from the above, the Group is now operating in four key reportable operating segments described as follows: 

(i) 

mobile services comprise postpaid mobile, prepaid mobile, mobile data, broadband and roaming services; 

(ii) enterprise fixed services comprise a full suite of voice services, data services, VSAT services and IP and managed services to 

cater for business customers; 

(iii) international gateway services comprise services to international telecommunications carriers for termination of traffic into 

Malaysia, services to send the Group’s own international traffic abroad and bandwidth leasing services; and 

(iv) home services comprise fixed voice services and data services to home customers. 

The Group also provides other services which are currently not significant enough to be reported separately.

138 


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Continued 

5 SEGMENT REPORTING (CONTINUED) 

Inter-segment revenues comprise network services and management services rendered to other business segments within the 

Group. Some transactions are transacted at normal commercial terms that are no more favourable than that available to other 

third parties whilst the rest are allocated based on an equitable basis of allocation. There have been no significant changes to the 

basis of pricing inter-segment transfers. 

The Group assesses the performance of the operating segments based on measure of revenue and profit from operations. Finance 

income and costs are not allocated to segments, as this type of activity is driven by the central treasury function, which manages 

the cash position of the Group. Tax expenses are not allocated to segments, as this type of activity is measured at entity based 

rather than taxation on segments. 

Additions to non-current assets are the total costs incurred during the financial year to acquire property, plant and equipment and 

intangible assets. 

(a) Business segments 

ENTERPRISE INTERNATIONAL 

MOBILE FIXED GATEWAY HOME OTHER 

SERVICES SERVICES SERVICES SERVICES OPERATIONS ELIMINATION GROUP 

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 

FINANCIAL YEAR ENDED 31 DECEMBER 2011 

Segment Revenue 

External revenue 8,445,440 180,859 155,841 17,781 0 0 8,799,921 

Inter-segment 

revenue 24,310 27,306 178,147 112 357,730 (587,605) 0 

Segment revenue 8,469,750 208,165 333,988 17,893 357,730 (587,605) 8,799,921 

Segment Results 

Segment 

operating 

profit/(loss) 3,234,737 25,468 22,832 (57,756) 6,422 0 3,231,703 

Profit from 

operations 3,231,703 

Finance income 39,873 

Finance costs (267,500) 

Profit before tax 3,004,076 

Tax expenses (473,237) 

Profit for the 

financial year 2,530,839 

Depreciation and 

amortisation 1,070,439 25,276 18,505 8,922 25,599 0 1,148,741 

Other material 

non-cash items 236,234 4,617 1,932 3,293 12,314 0 258,390 

Additions to 

non-current 

assets 1,035,020 31,444 632 108,059 17,891 0 1,193,046

MAXIS BERHAD 


139 


(a) Business segments (continued) 

ENTERPRISE 

FIXED INTERNATIONAL HOME 

MOBILE SERVICES GATEWAY SERVICES OTHER 

SERVICES (NOTE 37(a)) SERVICES (NOTE 37(a)) OPERATIONS ELIMINATION GROUP 


FINANCIAL YEAR ENDED 31 DECEMBER 2010 (RESTATED) 


External revenue 8,279,042 167,655 404,921 17,255 0 0 8,868,873 

Inter-segment 

revenue 41,698 27,446 219,628 293 288,031 (577,096) 0 

Segment revenue 8,320,740 195,101 624,549 17,548 288,031 (577,096) 8,868,873 


Segment 

operating 

profit 3,282,098 34,633 8,706 13,755 4,152 0 3,343,344 

Profit from 

operations 3,343,344 

Finance income 28,758 

Finance costs (239,600) 

Profit before tax 3,132,502 

Tax expenses (837,088) 

Profit for the 

financial year 2,295,414 

Depreciation and 

amortisation 970,308 28,705 24,168 954 26,305 0 1,050,440 

Other material 

non-cash items 162,940 2,795 2,305 1,237 8,258 0 177,535 

Additions to 

non-current 

assets 1,406,288 26,707 10,956 68,244 6,898 0 1,519,093

140 


NOTES TO THE 



Continued 


(a) Business segments (continued) 

Other material non-cash items consist of the following: 

GROUP 

RESTATED 

NOTE 2011 2010 

RM’000 

RM’000 

Allowance(net) for: 

- impairment of receivables, deposits and prepayments 37(b) 135,497 118,521 

- inventories obsolescence 21,504 5,598 

ESOS expense 668 0 

Loss/(gain) on disposal of property, plant and equipment 1,761 (839) 

Property, plant and equipment written off 40,647 22,673 

Provision/(write-back of provision) (net) for: 

- staff incentive scheme 49,148 38,279 

- site rectification and decommissioning works 901 (3,767) 

Unrealised loss/(gain) on foreign exchange 8,264 (2,930) 

(b) Geographical information 

258,390 177,535 

The Group’s business segments operate substantially in Malaysia. In determining the geographical segments of the Group, 

revenues are based on the country in which the customer or international operator is located. Non-current assets by 

geographical segments are not disclosed as all operations of the Group are based on Malaysia. 

GROUP 

2011 2010 

RM’000 

RM’000 

Malaysia 8,456,662 8,253,337 

Other countries* 343,259 615,536 

Total revenue 8,799,921 8,868,873 

* Represents revenue from roaming partners and hubbing revenue.

MAXIS BERHAD 


141 

6 REVENUE 

GROUP 

COMPANY 

RESTATED 

NOTE 2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 

Mobile services 8,260,954 8,153,958 0 0 

Enterprise fixed services 37(a) 180,859 167,655 0 0 

International gateway services 155,841 404,921 0 0 

Home services 37(a) 17,781 17,255 0 0 

Sale of devices 184,486 125,084 0 0 

Dividend income from subsidiaries 0 0 2,360,000 2,615,000 

8,799,921 8,868,873 2,360,000 2,615,000 

7 PROFIT FROM OPERATIONS 

The following items have been charged/(credited) in arriving at the profit from operations: 

GROUP 

COMPANY 

RESTATED 

NOTE 2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 

Allowance for: 

- impairment of receivables, 

deposits and prepayments 37(b) 147,832 122,610 0 0 

- inventories obsolescence 22,669 13,424 0 0 

Amortisation of intangible assets 16 137,453 74,592 0 0 

Auditors’ remuneration: 

- fees for statutory audits: 

- auditors of the Group 1,027 928 43 40 

- others 21 32 0 0 

- fees for audit related services (1) 1,463 1,234 776 707 

- fees for other services 

- auditors of the Group 175 0 0 0 

- member firms of PwC Malaysia (2) 1,318 979 4 150 

Bad debts recovered (14,267) (9,351) 0 0 

Commissions, sales and marketing expenses 37(b) 587,787 649,105 0 0 

Depreciation of property, plant and equipment 15 1,011,288 975,848 0 0 

Device expense 157,904 125,493 0 0 

(Gain)/loss on foreign exchange 

- realised (24,485) (23,679) 50 (107) 

- unrealised 8,264 (2,930) 1 0 

Government grant (7,129) (5,528) 0 0 

Interconnect expense 752,481 1,055,180 0 0 

Licenses and spectrum related fees under the 

Communications and Multimedia Act, 1998 138,011 123,919 0 0 

Loss/(gain) on disposal of property, 

plant and equipment 1,761 (839) 0 0 

Management fees charged by a 

fellow subsidiary 0 0 11,743 10,790

142 


NOTES TO THE 



Continued 

7 PROFIT FROM OPERATIONS (CONTINUED) 

GROUP 

COMPANY 

RESTATED 

NOTE 2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 

Property, plant and equipment written off 40,647 22,673 0 0 

Provision for: 

- staff incentive scheme 30 49,314 49,699 0 0 

- site rectification and decommissioning works 30 901 47 0 0 

Rental of land and buildings 56,120 51,330 0 0 

Rental of equipment 20,012 24,012 0 0 

Rental of network cell sites 246,765 233,602 0 0 

Reversal of allowance for: 

- impairment of receivables, 

deposits and prepayments 37(b) (12,335) (4,089) 0 0 

- inventories obsolescence (1,165) (7,826) 0 0 

Roaming expense 194,869 246,384 0 0 

Service tax on mobile prepaid services 222,288 200,620 0 0 

Staff cost: 

- Directors’ fees 8 2,760 2,760 2,760 2,760 

- staff cost (including Executive 

Director’s salaries and other 

short-term employee benefits) 10 440,618 386,133 0 0 

Universal Service Provision 

contributions 436,618 409,134 0 0 

Write-back of provision for: 

- staff incentive scheme 30 (166) (11,420) 0 0 


decommissioning works 30 0 (3,814) 0 0 

(1) 

Fees incurred in connection with performance of quarterly reviews, agreed-upon procedures and regulatory compliance reporting paid or payable to 

PricewaterhouseCoopers (“PwC”) Malaysia, auditors of the Group and of the Company. 

(2) 

Fees incurred for assisting the Group in connection with tax compliance and advisory services paid or payable to member firms of PwC Malaysia, auditors of 

the Group and of the Company. 

The Audit Committee, in ensuring the independence of the Group’s external auditors is consistently maintained, has set out clear 

policies and guidelines as to the type of non-audit services that can be offered as well as a structured approval process that has 

to be adhered to before any such non-audit services are commissioned. Under these policies and guidelines, non-audit services 

can be offered by the Group’s external auditors if the Group can realise efficiencies and value-added benefits from such services.

MAXIS BERHAD 


143 

8 DIRECTORS’ REMUNERATION 

The Directors of the Company in office during the financial year are as follows: 






Eng Saud Majed A.AlDaweesh (resigned with effect from 10 February 2011) 


Dr Zeyad Thamer H.AlEtaibi (appointed with effect from 10 February 2011) 





Sandip Das 

The aggregate amount of emoluments received/receivable by Directors of the Company during the financial year is as follows: 

GROUP 

COMPANY 

NOTE 2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 


Fees 7 2,760 2,760 2,760 2,760 

Estimated monetary value of benefits-in-kind 38 0 38 0 

2,798 2,760 2,798 2,760 


Salaries and other short-term 

employee benefits 4,676 4,988 348 91 

ESOS – Equivalent Cash Consideration (1) 5,064 5,060 0 0 

Estimated monetary value of benefits-in-kind 324 270 24 5 

10,064 10,318 372 96 

Total Directors’ remuneration 12,862 13,078 3,170 2,856 

(1) 

In prior years, the immediate holding company operated an equity-settled, share-based compensation plan for eligible employees and full-time Executive 

Directors pursuant to its ESOS.

144 


NOTES TO THE 



Continued 

8 DIRECTORS’ REMUNERATION (CONTINUED) 

The remuneration of the Company’s Directors analysed in bands of RM50,000 are as follows: 

RANGE OF REMUNERATION* EXECUTIVE NON-EXECUTIVE 

RM1 – RM50,000 0 1 

RM200,001 – RM250,000 0 1 

RM250,001 – RM300,000 0 5 

RM300,001 – RM350,000 0 1 

RM350,001 – RM400,000 0 1 

RM450,001 – RM500,000 0 1 

RM10,050,001 – RM10,100,000 1 0 

* Remuneration paid to the Directors of the Company include fees, salaries, other emoluments including bonus, employer’s contribution to retirement 

benefits and other benefits, share-based payments and estimated monetary value of benefits-in-kind. 

9 KEY MANAGEMENT PERSONNEL REMUNERATION 

Key management personnel comprise persons including Directors of the Company, having authority and responsibility for 

planning, directing and controlling the activities of the Group entities either directly or indirectly. 

The aggregate amount of emoluments received/receivable by key management personnel excluding Directors of the Company 

during the financial year is as follows: 

GROUP 

COMPANY 

RESTATED 

NOTE 2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 

Salaries and other short-term 

employee benefits 32,154 24,258 1,452 1,089 

Defined contribution plan 2,283 1,307 97 71 

ESOS – Equivalent Cash Consideration (1) 0 281 0 0 

Estimated monetary value of benefits-in-kind 1,251 1,363 51 69 

ESOS expense 153 0 0 0 

37(b) 35,841 27,209 1,600 1,229 

(1) 

In prior years, the immediate holding company operated an equity-settled, share-based compensation plan for eligible employees and full-time Executive 

Directors pursuant to its ESOS. 

The total key management personnel remuneration of the Group and the Company for the financial year is RM48,703,000 (2010: 

RM40,287,000) and RM4,770,000 (2010: RM4,085,000) respectively.

MAXIS BERHAD 


145 

10 STAFF COST (INCLUDING EXECUTIVE DIRECTOR’S SALARIES AND OTHER SHORT-TERM EMPLOYEE BENEFITS) 

GROUP 

NOTE 2011 2010 

RM’000 

RM’000 

Wages, salaries and bonuses 350,577 314,528 

Defined contribution plan 38,838 32,896 

Other employee benefits 50,535 38,709 

ESOS expense 28(b) 668 0 

440,618 386,133 

11 FINANCE INCOME AND COSTS 

GROUP 

COMPANY 

NOTE 2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 

(a) Finance income 

Interest income on: 

- deposits with licensed banks 39,873 28,758 2,344 3,328 

- loans due from subsidiaries 0 0 83,421 57,691 

(b) Finance costs 

39,873 28,758 85,765 61,019 

Interest expense on: 

- bank loans 278,121 189,460 278,121 189,460 

- finance leases 4,137 6,324 0 0 

- deferred payment creditors 903 139 0 0 

- loan from a related party 2,463 1,713 0 0 

- loan from immediate holding company 0 27,692 0 21,123 

- others 182 476 0 0 

Accretion of site rectification and 

decommissioning works costs and changes 

in costs estimate on provision (net) 30 (22,445) 4,261 0 0 

Loans documentation fees 3,766 65 3,766 65 

Loss/(gain) on foreign exchange 

on bank loans 95,641 (240,125) 95,641 (240,125) 

Fair value (gain)/loss on financial 

instruments: 

- cross currency interest rate swaps: 

cash flow hedge, transferred from 

equity 29(c) (95,268) 249,595 (95,268) 249,595 

267,500 239,600 282,260 220,118

146 


NOTES TO THE 



Continued 

12 TAX EXPENSES 

GROUP 

COMPANY 

NOTE 2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 

Current tax (Malaysian) 

- current year 707,157 633,329 830 910 

- over accrual in prior years (139,707) (442) (3) 0 

567,450 632,887 827 910 

Deferred tax 

- Origination and reversal 

of temporary differences (10,657) 201,967 0 0 

- Recognition and reversal 

of prior years temporary differences (83,556) 2,234 0 0 

23 (94,213) 204,201 0 0 

Tax expenses 473,237 837,088 827 910 

The Malaysian income tax is calculated at the statutory tax rate of 25% (2010: 25%) on the estimated chargeable profit for the 

financial year. Taxes in foreign jurisdictions are calculated at the rates prevailing in the respective jurisdictions. 

The explanation of the relationship between the tax expense and profit before tax is as follows: 

GROUP 

COMPANY 

2011 2010 2011 2010 

% % % % 

Numerical reconciliation between the Malaysian tax 

rate and average effective tax rate 

Malaysian tax rate 25 25 25 25 

Tax effects of: 

- expenses not deductible for tax purposes 2 2 3 2 

- income not subject to tax 0 0 (28) (27) 

- effect of tax incentive (4) 0 0 0 

- recognition and reversal of prior years temporary 

difference (3) 0 0 0 

- over accrual in prior years (4) 0 0 0 

Average effective tax rate 16 27 0 0

MAXIS BERHAD 


147 

12 TAX EXPENSES (CONTINUED) 

During the financial year, one of the subsidiaries of the Group has been granted Investment Allowance under the Last 

Mile Broadband Tax Incentive by the Ministry of Finance. This has resulted in the recognition of tax credits amounting 

to RM352,347,000, comprising RM223,317,000 in respect of prior financial years and RM129,030,000 for the current 


The gazetted Finance Act 2007 introduced a single-tier company income tax system with effect from year of assessment 2008. 

Under the single-tier system, companies are not required to have tax credits under Section 108 of the Income Tax Act 1967 for 

dividend payment purposes. Dividends paid under this system are tax-exempt in the hands of the shareholder. The Section 108 

tax credit as at 31 December 2007 will be available to the companies until such time that the credit is fully utilised or upon expiry 

of the six-year transitional period on 31 December 2013, whichever is earlier, unless the company opts to disregard the Section 

108 credits to pay single-tier dividends under the special transitional provisions of the Finance Act 2007. 

Subject to agreement by the tax authorities, a subsidiary of the Group has sufficient Section 108 tax credits to frank approximately 

RM7,239,000 (2010: RM7,239,000) of its retained earnings if paid out as dividends. 

13 EARNINGS PER SHARE 

(a) Basic earnings per share 

Basic earnings per share of the Group is calculated by dividing the profit attributable to ordinary equity holders of the 

Company for the financial year by the weighted average number of ordinary shares in issue during the financial year. 

GROUP 

2011 2010 

Profit attributable to the equity holders of the Company (RM’000) 2,526,872 2,295,414 

Weighted average number of issued ordinary shares (’000) 7,500,000 7,500,000 

Basic earnings per share (sen) 33.69 30.61 

(b) Diluted earnings per share 

For the current financial year ended 31 December 2011, the diluted earnings per share is the same as basic earnings per 

share as the effect of dilutive potential ordinary shares is anti-dilutive. As at 31 December 2011, 11,306,300 share options 

were granted and remained unexercised pursuant to the ESOS that could potentially dilute the basic earnings per share in 

the future but is anti-dilutive in the current financial year ended 31 December 2011. For the previous financial year ended 31 

December 2010, the diluted earnings per share was not applicable as there were no dilutive potential ordinary shares.

148 


NOTES TO THE 



Continued 

14 DIVIDENDS 

GROUP AND COMPANY 

2011 2010 

AMOUNT OF 

AMOUNT OF 

GROSS DIVIDENDS, GROSS DIVIDENDS, 

DIVIDEND SINGLE-TIER DIVIDEND SINGLE-TIER 

PER SHARE TAX-EXEMPT PER SHARE TAX-EXEMPT 

SEN RM’000 SEN RM’000 

Dividends paid in respect of the financial 

year ended 31 December 2009: 

- Second interim ordinary 0 0 6.0 450,000 

- Final ordinary 0 0 3.0 225,000 

0 0 9.0 675,000 



- First interim ordinary 0 0 8.0 600,000 

- Second interim ordinary 0 0 8.0 600,000 

- Third interim ordinary 0 0 8.0 600,000 

- Fourth interim ordinary 8.0 600,000 0 0 

- Final ordinary 8.0 600,000 0 0 

16.0 1,200,000 24.0 1,800,000 



- First interim ordinary 8.0 600,000 0 0 

- Second interim ordinary 8.0 600,000 0 0 

- Third interim ordinary 8.0 600,000 0 0 

24.0 1,800,000 0 0 

Dividend per share recognised as distribution 

to ordinary equity holders of the Company 40.0 3,000,000 33.0 2,475,000 

Subsequent to the financial year, on 24 February 2012, the Directors declared a fourth interim single-tier tax-exempt dividend of 

8.0 sen per ordinary share in respect of the financial year ended 31 December 2011, amounting to RM600,000,000 which was 

paid on 30 March 2012. 

The Directors recommend the payment of a final single-tier tax-exempt dividend of 8.0 sen per ordinary share, amounting to 

RM600,000,000 in respect of the financial year ended 31 December 2011, which subject to the shareholders’ approval at the 

forthcoming Annual General Meeting, will be paid on a date to be determined.

MAXIS BERHAD 


149 

15 PROPERTY, PLANT AND EQUIPMENT 

CHANGE IN 

COST ASSETS CURRENCY 

AS AT ESTIMATE RECLASSI- WRITTEN TRANSLATION AS AT 

1.1.2011 ADDITIONS (NOTE 30) FICATIONS DISPOSALS OFF DIFFERENCE 31.12.2011 

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 

2011 

GROUP 

At cost 

Long-term leasehold land 3,111 0 0 0 0 0 0 3,111 

Short-term leasehold land 3,490 0 0 0 0 0 0 3,490 

Freehold land 18,260 0 0 0 0 0 0 18,260 

Buildings 76,756 0 0 0 0 0 0 76,756 

Telecommunications equipment 5,449,560 15,949 (13,535) 1,079,837 (3,785) (54,375) 4 6,473,655 

Motor vehicles 4,631 10,971 0 0 (4,613) 0 0 10,989 

Office furniture, fittings and equipment 351,802 6,462 (57) 61,110 (5) (4,341) 0 414,971 

5,907,610 33,382 (13,592) 1,140,947 (8,403) (58,716) 4 7,001,232 

Capital work-in-progress 551,077 995,573 0 (1,140,947) 0 (15,028) 0 390,675 

6,458,687 1,028,955 (13,592) 0 (8,403) (73,744) 4 7,391,907 

CHANGE IN 

COST RELEASED ASSETS CURRENCY 

AS AT ESTIMATE RECLASSI- ON WRITTEN TRANSLATION AS AT 

1.1.2011 ADDITIONS (NOTE 30) FICATIONS DISPOSALS OFF DIFFERENCE 31.12.2011 

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 

2011 

GROUP 

Accumulated depreciation 

Long-term leasehold land 48 39 0 0 0 0 0 87 

Short-term leasehold land 100 79 0 0 0 0 0 179 

Buildings 2,974 1,998 0 0 0 0 0 4,972 

Telecommunications equipment 1,229,946 949,622 (2,850) 0 (1,601) (29,519) 1 2,145,599 

Motor vehicles 3,115 2,476 0 0 (4,544) 0 0 1,047 

Office furniture, fittings and equipment 215,458 57,074 0 0 (5) (3,578) 0 268,949 

1,451,641 1,011,288 (2,850) 0 (6,150) (33,097) 1 2,420,833

150 


NOTES TO THE 



Continued 

15 PROPERTY, PLANT AND EQUIPMENT (CONTINUED) 

2010 

ASSETS CURRENCY 

AS AT RECLASSI- WRITTEN TRANSLATION AS AT 

1.1.2010 ADDITIONS FICATIONS DISPOSALS OFF DIFFERENCE 31.12.2010 


GROUP 

At cost 

Long-term leasehold land 3,111 0 0 0 0 0 3,111 

Short-term leasehold land 3,490 0 0 0 0 0 3,490 

Freehold land 18,260 0 0 0 0 0 18,260 

Buildings 76,756 0 0 0 0 0 76,756 

Telecommunications equipment 4,166,032 7,695 1,299,826 0 (23,990) (3) 5,449,560 

Motor vehicles 4,325 736 0 (386) (44) 0 4,631 

Office furniture, fittings and equipment 265,115 18,926 69,086 (4) (1,321) 0 351,802 

4,537,089 27,357 1,368,912 (390) (25,355) (3) 5,907,610 

Capital work-in-progress 503,984 1,416,590 (1,368,912) 0 (585) 0 551,077 

5,041,073 1,443,947 0 (390) (25,940) (3) 6,458,687 

RELEASED ASSETS CURRENCY 

AS AT RECLASSI- ON WRITTEN TRANSLATION AS AT 

1.1.2010 ADDITIONS FICATIONS DISPOSALS OFF DIFFERENCE 31.12.2010 


2010 

GROUP 

Accumulated depreciation 

Long-term leasehold land 10 38 0 0 0 0 48 

Short-term leasehold land 20 80 0 0 0 0 100 

Buildings 976 1,998 0 0 0 0 2,974 

Telecommunications equipment 347,760 884,353 0 0 (2,167) 0 1,229,946 

Motor vehicles 767 2,630 0 (238) (44) 0 3,115 

Office furniture, fittings and equipment 129,765 86,749 0 0 (1,056) 0 215,458 

479,298 975,848 0 (238) (3,267) 0 1,451,641

MAXIS BERHAD 


151 

15 PROPERTY, PLANT AND EQUIPMENT (CONTINUED) 

GROUP 

2011 2010 

RM’000 

RM’000 

Net book value 

Long-term leasehold land 3,024 3,063 

Short-term leasehold land 3,311 3,390 

Freehold land 18,260 18,260 

Buildings 71,784 73,782 

Telecommunications equipment 4,328,056 4,219,614 

Motor vehicles 9,942 1,516 

Office furniture, fittings and equipment 146,022 136,344 

Capital work-in-progress 390,675 551,077 

4,971,074 5,007,046 

Capital work-in-progress is reclassified to the respective categories of property, plant and equipment on completion. 

The Group revised the useful lives of certain telecommunications equipment and office equipment ranging from 4 years to 

20 years to a remaining useful lives ranging from 16 months to 20 years as part of the network modernisation programme to 

support the business. During the financial year, the revision was accounted as a change in accounting estimate and as a result, 

the depreciation charge for the current financial year has increased by RM16,782,000. 

Additions in property, plant and equipment during the financial year include purchases by means of finance leases and deferred 

payment schemes amounting to RM21,384,000 (2010: RM14,469,000) and RM16,370,000 (2010: RM42,270,000) respectively. 

The net book value of property, plant and equipment held under finance leases at the reporting date are as follows: 

GROUP 

2011 2010 

RM’000 

RM’000 

Office equipment 53,615 61,042 

Motor vehicles 8,662 22 

62,277 61,064

152 


NOTES TO THE 



Continued 

16 INTANGIBLE ASSETS 

TELECOMMU- 

NICATIONS 

LICENCES 

WITH 

ALLOCATED 

SPECTRUM 

HANDSET 

GOODWILL RIGHTS SUBSIDIES TOTAL 

GROUP RM’000 RM’000 RM’000 RM’000 

2011 

As at 1 January 2011 219,087 10,707,381 92,951 11,019,419 

Additions during the financial year 0 0 177,683 177,683 

Amortisation charge for the financial year 

(included within administrative expenses) 0 0 (137,453) (137,453) 

As at 31 December 2011 219,087 10,707,381 133,181 11,059,649 

Cost 219,087 10,707,381 438,351 11,364,819 

Accumulated amortisation 0 0 (305,170) (305,170) 

As at 31 December 2011 219,087 10,707,381 133,181 11,059,649 

2010 

As at 1 January 2010 219,087 10,707,381 92,397 11,018,865 

Additions during the financial year 0 0 75,146 75,146 

Amortisation charge for the financial year 

(included within administrative expenses) 0 0 (74,592) (74,592) 

As at 31 December 2010 219,087 10,707,381 92,951 11,019,419 

Cost 219,087 10,707,381 260,668 11,187,136 

Accumulated amortisation 0 0 (167,717) (167,717) 

As at 31 December 2010 219,087 10,707,381 92,951 11,019,419 

The remaining amortisation periods of handset subsidies as at financial year end ranged from 1 to 23 months (2010: 1 to 23 

months).

MAXIS BERHAD 


153 

16 INTANGIBLE ASSETS (CONTINUED) 

Impairment testing for cash-generated units containing goodwill 

For the purpose of impairment testing, carrying amount of goodwill is allocated to the Group’s cash-generated units (“CGU”) 

identified as mobile services. 

The recoverable amount of a CGU is determined based on value in use calculations. These calculations use pre-tax cash flow 

projections based on internally approved financial budgets covering a five-year (2010: five-year) period which reflect management’s 

expectations of revenue and EBITDA margin based on past experience and future expectations of business performance. 

The key assumptions used in the value in use calculations are as follows: 

(a) five years (2010: five years) financial budget period; and 

(b) pre-tax discount rate of 14.9% (2010: 14.6%) derived in accordance with the requirements of FRS 136 “Impairment of 

Assets” using the Group’s post-tax discount rate of 8.3% (2010: 8.5%). 

The key assumptions represent management’s assessment of future trends in the regional mobile telecommunications industry 

and are based on both external sources and internal sources. 

The discount rates used are pre-tax and reflect specific risks relating to the mobile services. 

The forecasts are most sensitive to changes in discount rates in the forecast period. Based on the sensitivity analysis performed, 

the Directors have concluded that any variation of 10% in the base case assumptions would not cause the carrying amount of the 

CGU to exceed its recoverable amount. 

17 INTEREST IN SUBSIDIARIES 

COMPANY 

NOTE 2011 2010 

RM’000 

RM’000 

Non-current assets: 

- Investments in subsidiaries 18 35,013,428 35,012,760 

- Loans to subsidiaries (a) 1,358,792 1,522,717 

Current asset: 

- Amount due from a subsidiary (b) 175 0 

Current liability: 

- Amounts due to subsidiaries (b) (1,155) (963) 

36,371,240 36,534,514

154 


NOTES TO THE 



Continued 

17 INTEREST IN SUBSIDIARIES (CONTINUED) 

(a) Loans to subsidiaries - Interest bearing 

The terms of the loans are as follows: 

COMPANY 

2011 2010 

LOANS LOANS CURRENCY 

PRINCIPAL OUT- PRINCIPAL OUT- DENOMI- 

AMOUNT STANDING AMOUNT STANDING NATION REPAYMENT TERMS 

RM’000 RM’000 RM’000 RM’000 

1,200,000 1,205,758 1,200,000 1,205,854 RM The loan is repayable based on 

a scheduled repayment as below: 

Months after the 

first drawdown Instalment % 

72 27.8 

78 35.1 

84 37.1 

0 0 314,500 316,863 RM The loan was fully repaid during 

the financial year. 

152,500 153,034 0 0 RM The loan is repayable in one 

lump sum on 26 February 2021. 

1,352,500 1,358,792 1,514,500 1,522,717 

The loans to subsidiaries are unsecured and carry interest rates ranging from 3.99% to 5.00% per annum (2010: 5.00% to 

5.80%) as at the reporting date. 

(b) Amounts due from/(to) subsidiaries - Non-interest bearing 

The amounts due from/(to) subsidiaries are unsecured and with 30 days credit period (2010: 30 days).

MAXIS BERHAD 


155 

18 INVESTMENTS IN SUBSIDIARIES 

COMPANY 

NOTE 2011 2010 

RM’000 

RM’000 

Unquoted shares at cost 35,012,760 35,012,760 

Fair value of share options granted to employees of subsidiaries 28(b) 668 0 

35,013,428 35,012,760 

The information on the subsidiaries is as follows: 

GROUP’S 

EFFECTIVE 

PAID-UP 

NAME PRINCIPAL ACTIVITIES EQUITY INTEREST CAPITAL 

2011 2010 2011 2010 

Incorporated 

in Malaysia 

Advanced Wireless Provider of wireless multimedia 75% 75% RM3,333,336 RM3,333,336 

Technologies 

related services 

Sdn. Bhd. (517551-U) 

Maxis Broadband Operator of a national public switched 100% 100% RM1,000,002 RM1,000,002 

Sdn. Bhd. 

network and provider of internet and 

(234053-D) 

internet application services and includes 

owning, maintaining, building and 

operating radio facilities and associated 

switches 

Maxis Collections Collector of telecommunications 100% 100% RM2 RM2 

Sdn. Bhd. (383275-M) revenue for fellow subsidiaries 

Maxis International Operator of an international gateway 100% 100% RM2,500,002 RM2,500,002 

Sdn. Bhd. (240071-T) 

Maxis Mobile Sdn. Operator of mobile telecommunications 100% 100% RM2,500,002 RM2,500,002 

Bhd. (229892-M) for special niche projects such as 

Universal Services Provision, provider of 

corporate support and services 

functions to the penultimate holding 

company, immediate holding company 

and fellow subsidiaries and provider of 

hire purchase facility to a fellow 

subsidiary 

Maxis Mobile Services Provider of mobile telecommunications 100% 100% RM1,293,884,000 RM1,293,884,000 

Sdn. Bhd. (73315-V) products and services

156 


NOTES TO THE 



Continued 

18 INVESTMENTS IN SUBSIDIARIES (CONTINUED) 

The information on the subsidiaries is as follows: (continued) 

GROUP’S 

EFFECTIVE 

PAID-UP 

NAME PRINCIPAL ACTIVITIES EQUITY INTEREST CAPITAL 

2011 2010 2011 2010 

Incorporated 

in Malaysia 

(continued) 

Maxis Multimedia Provider of multimedia related services 100% 100% RM2 RM2 

Sdn. Bhd. (530188-A) (dormant) 

Subsidiary of Advanced 

Wireless Technologies 

Sdn. Bhd. 

UMTS (Malaysia) 3G spectrum assignment holder 75% 75% RM2,500,002 RM2,500,002 

Sdn. Bhd. (520422-D) 

Subsidiary of Maxis 

Broadband Sdn. Bhd. 

Maxis Online Sdn. Bhd. Holder of investments (dormant) 100% 100% RM2 RM2 

(235849-A) 


Mobile Sdn. Bhd. 

Maxis Mobile (L) Ltd Holder of investments 100% 100% USD10,000 USD10,000 

(LL-01709) (i) 

Incorporated in the 

Republic of 

Singapore 


International 

Sdn. Bhd. 

Maxis Asia Access Pte Provider of international 100% 100% SGD2 SGD2 

Ltd (200001826C) #(ii) telecommunications services 

Notes: 

# 

Not audited by PwC. 

(i) 

Maxis Mobile (L) Ltd is a company registered under the Labuan Companies Act, 1990, with shares issued in USD. 

(ii) 

Maxis Asia Access Pte Ltd is a company established under the Companies Act, Cap. 50 of the Republic of Singapore, with shares issued in SGD.

MAXIS BERHAD 


157 

19 FINANCIAL INSTRUMENTS BY CATEGORY 

GROUP 

COMPANY 

RESTATED 

NOTE 2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 

Financial assets: 

Amount due from a subsidiary 17 0 0 175 0 

Amount due from a fellow subsidiary 20 0 10 0 0 

Amount due from immediate 

holding company 20 418 266 0 0 

Amounts due from related parties 26 16,428 13,792 0 0 


Receivables and deposits 25 676,526 740,454 50 19 

Cash and cash equivalents 27 838,125 897,621 81,405 79,554 

Loans and receivables 1,531,497 1,652,143 1,440,422 1,602,290 

Available-for-sale investment 21 50 0 0 0 

Derivative financial instruments 22 3,201 0 3,201 0 

Financial liabilities: 

Payables and accruals 31 1,696,553 1,854,055 1,816 1,608 

Amounts due to related parties 26 23,214 42,944 0 0 

Amounts due to subsidiaries 17 0 0 1,155 963 

Amounts due to fellow subsidiaries 20 246 1,203 0 0 

Amount due to immediate 


Borrowings 32 5,873,068 5,073,868 5,837,515 5,043,647 

Loan from a related party 26 35,668 33,205 0 0 

Other financial liabilities 7,628,749 7,005,394 5,840,486 5,046,218 

Derivative financial instruments 22 366,177 348,452 366,177 348,452

158 


NOTES TO THE 



Continued 

20 FELLOW SUBSIDIARIES AND IMMEDIATE HOLDING COMPANY BALANCES 

GROUP 

2011 2010 

RM’000 

RM’000 

Current assets: 

- Amount due from a fellow subsidiary 0 10 

- Amount due from immediate holding company 418 266 

Current liabilities: 

- Amounts due to fellow subsidiaries (246) (1,203) 

- Amount due to immediate holding company 0 (119) 

172 (1,046) 

The amounts due from/(to) fellow subsidiaries and immediate holding company are unsecured, non-interest bearing and with 30 

days credit period (2010: 30 days). 

21 AVAILABLE-FOR-SALE INVESTMENT 

GROUP 

2011 2010 

RM’000 

RM’000 

Unquoted shares, at cost 50 0 

The Group has one-twenty-fourth (1/24 th ) interest in Konsortium Rangkaian Serantau Sdn. Bhd. This entity was formed for the 

purpose of implementing one of the entry points projects to lower the costs of Internet Protocol transit and domestic bandwidths 

by aggregating capacity of its shareholders to secure lower prices from suppliers. The fair value cannot be reliably measured as 

there is no active market upon which it is traded. Hence, it is carried at cost. 

22 DERIVATIVE FINANCIAL INSTRUMENTS 


2011 2010 

ASSETS LIABILITIES LIABILITIES 

RM’000 RM’000 RM’000 

Cross Currency Interest Rate Swaps (“CCIRSs”): 

- Cash flow hedge on USD denominated borrowings 2,774 366,177 348,452 

- Cash flow hedge on SGD denominated borrowings 427 0 0 

Non-current 3,201 366,177 348,452

MAXIS BERHAD 


159 

22 DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED) 

The details of the CCIRSs are set out as below: 

COM- CONTRACT/ 

MENCEMENT NOTIONAL 

DATE AMOUNT EXCHANGE RATE INTEREST RATE 

RM’000 

24 Feb 2010 2,550,000 The Group and Company pay RM in The Group and Company pay a fixed 

exchange for receiving USD at a 

interest rate of 4.75% per annum in 

predetermined exchange rate of 

exchange for receiving London Interbank 

RM3.40 to USD1.00 according to 

Offered Rate (“LIBOR”) plus a spread on 

the scheduled principal and interest the amortising outstanding principal 

repayment of the syndicated loan in amount. 

which principal exchange occurs semiannually 

commencing from the fourth 

year of the syndicated loan. 

13 Aug 2010 314,500 The Group and Company pay RM in The Group and Company pay a fixed 


interest rate of 5.25% per annum in 

pre-determined exchange rate of 

exchange for receiving LIBOR plus a 

RM3.145 to USD1.00 for its principal spread on the notional principal amount. 

and interest in which at the end of 

the tenure, principal is on bullet 

repayment basis. 

28 Feb 2011 304,900 The Group and Company pay RM in The Group and Company pay Kuala 


Lumpur Interbank Offered Rate (“KLIBOR”) 


plus a spread in exchange for 

RM3.048 to USD1.00 and RM3.050 receiving LIBOR plus a spread on the 

to USD1.00 on each USD50 million notional principal amount. 

respectively for its principal and interest 

in which at the end of the tenure, 

principal is on bullet repayment basis. 

28 Feb 2011 167,300 The Group and Company pay RM in The Group and Company pay KLIBOR 

exchange for receiving SGD at a 

plus a spread in exchange for receiving 


Singapore Swap Offer Rate (“SOR”) 

RM2.39 to SGD1.00 for its principal plus a spread on the notional principal 

and interest in which at the end of amount. 

the tenure, principal is on bullet 

repayment basis. 

14 Jun 2011 227,250 The Group and Company pay RM in The Group and Company pay a fixed 


interest rate of 4.99% in exchange for 


receiving LIBOR plus a spread on the 

RM3.03 to USD1.00 for its principal notional principal amount. 

and interest in which at the end of the 

tenure, principal is on bullet repayment 

basis.

160 


NOTES TO THE 



Continued 

22 DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED) 

At the reporting date, the Group has recognised derivative financial assets and derivative financial liabilities of RM3,201,000 

(2010: Nil) and RM366,177,000 (2010: RM348,452,000) respectively, a net increase of RM14,524,000 from the prior financial 

year, on remeasuring the fair values of the derivative financial instruments. The corresponding increase has been included in 

equity in the cash flow hedging reserve. For the current financial year, RM95,268,000 (2010: RM249,595,000) was transferred 

to the income statements to offset the unrealised foreign exchange loss of RM95,641,000 (2010: RM240,125,000) which arose 

from the weakening RM against USD and SGD offset by the recognition of additional interest expense of RM373,000 (2010: 

RM9,470,000) as the underlying interest rates were lower than the hedged interest rates on the borrowings. This has resulted 

in a debit balance in the cash flow hedging reserve as at 31 December 2011 of RM208,649,000 (2010: RM98,857,000). 

The gains or losses recognised in the cash flow hedging reserve in equity will be continuously released to the income statement 

within finance cost until the underlying borrowings are repaid. 

As the Group and the Company intend to hold the borrowings and associated derivative instruments to maturity, any changes 

to the fair values of the derivative instruments will not impact the income statements and will be taken to the cash flow hedging 

reserve in equity. 

The method and assumption applied in determining the fair value of derivatives are disclosed in Note 3(i) to the financial 

statements. 

23 DEFERRED TAXATION 

Deferred tax assets and liabilities are offset when there is legally enforceable right to set off current tax assets against current 

tax liabilities and when the deferred taxes relate to the same tax authority. The following amounts, determined after appropriate 

offsetting, are shown in the statements of financial position: 

GROUP 

2011 2010 

RM’000 

RM’000 

Deferred tax assets 120,870 95,906 

Deferred tax liabilities (551,068) (620,317) 

(430,198) (524,411)

MAXIS BERHAD 


161 

23 DEFERRED TAXATION (CONTINUED) 

The movements in deferred tax assets/(liabilities) during the financial year comprise the following: 

PROPERTY, 

PROVISIONS 

PLANT AND INTANGIBLE DEFERRED AND INVESTMENT 

NOTE EQUIPMENT ASSETS INCOME ACCRUALS ALLOWANCE OTHERS TOTAL 

GROUP RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 

As at 1 January 2011 (834,533) (23,107) 84,757 138,620 109,286 566 (524,411) 

(Charged)/credited to income statement 12 (82,363) (10,188) 3,985 121,047 62,125 (393) 94,213 

As at 31 December 2011 (916,896) (33,295) 88,742 259,667 171,411 173 (430,198) 

As at 1 January 2010 (635,997) (21,673) 69,034 146,764 120,964 698 (320,210) 

(Charged)/credited to income statement 12 (198,536) (1,434) 15,723 (8,144) (11,678) (132) (204,201) 

As at 31 December 2010 (834,533) (23,107) 84,757 138,620 109,286 566 (524,411) 

GROUP 

2011 2010 

RM’000 

RM’000 

Deferred tax assets (before offsetting) 

- deferred income 88,742 94,692 

- intangible assets 0 131 

- provisions and accruals 259,667 138,620 

- investment allowances 171,411 109,286 

- others 419 1,088 

520,239 343,817 

Offsetting (399,369) (247,911) 

Deferred tax assets (after offsetting) 120,870 95,906 

Deferred tax liabilities (before offsetting) 

- property, plant and equipment (916,896) (834,533) 

- intangible assets (33,295) (23,238) 

- deferred income 0 (9,935) 

- others (246) (522) 

(950,437) (868,228) 

Offsetting 399,369 247,911 

Deferred tax liabilities (after offsetting) (551,068) (620,317)

162 


NOTES TO THE 



Continued 

24 INVENTORIES 

GROUP 

2011 2010 

RM’000 

RM’000 

Telecommunications materials and supplies 13,617 24,343 

Telecommunications equipment 28,277 75,502 

Devices 68,355 114,253 

110,249 214,098 

The Group reversed RM1,165,000 (2010: RM7,826,000) in respect of part of an inventory write down that was not required 

subsequently as the Group was able to utilise those inventories. 

25 RECEIVABLES, DEPOSITS AND PREPAYMENTS 

GROUP 

COMPANY 

NOTE 2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 

Trade receivables (a) 602,734 685,423 0 0 

Other receivables 55,417 54,745 50 19 

Deposits 107,132 95,337 0 0 

Prepayments 181,485 195,875 1,044 1,353 

946,768 1,031,380 1,094 1,372 

Allowance for impairment: 

(b) 

- trade receivables (70,681) (80,049) 0 0 

- other receivables (5,120) (2,104) 0 0 

- deposits (12,956) (12,898) 0 0 

(a) Trade receivables 

(88,757) (95,051) 0 0 

858,011 936,329 1,094 1,372 

The Group’s credit policy provides trade receivables with credit periods of up to 30 days (2010: 30 days). The Group has no 

significant exposure to any individual customer, geographical location or industry category. Significant credit and recovery 

risks associated with receivables have been provided for in the financial statements.

MAXIS BERHAD 


163 

25 RECEIVABLES, DEPOSITS AND PREPAYMENTS (CONTINUED) 

(a) Trade receivables (continued) 

Given the varied nature of the Group’s customer base, the following analysis of trade receivables by type of customer 

is considered the most appropriate disclosure of credit concentrations. 

GROUP 

2011 2010 

RM’000 

RM’000 

Subscribers: 

- individual 299,406 325,184 

- corporate 126,354 112,936 

Interconnect and roaming: 

- domestic 94,096 90,248 

- international 18,827 50,719 

Distributors 64,051 106,336 

602,734 685,423 

Trade receivables are secured by subscribers’ deposits and bank guarantees of RM41,994,000 (2010: RM50,888,000) and 

RM58,950,000 (2010: RM58,950,000) respectively. 

The ageing analysis of the Group’s gross trade receivables is as follows: 

GROUP 

2011 2010 

RM’000 

RM’000 

Neither past due nor impaired 400,961 511,659 

1 to 90 days past due not impaired 28,058 19,974 

91 to 180 days past due not impaired 7,287 2,910 

More than 180 days past due not impaired 3,809 3,201 

440,115 537,744 

Impaired (1) 162,619 147,679 

602,734 685,423 

(1) 

Represents gross trade receivables which have been either partially or fully impaired. 

Trade receivables that are neither past due nor impaired 

With respect to the trade receivables that are neither past due nor impaired, there is no indication as of the reporting date 

that the debtors will not meet their payment obligations since the Group selects the highest possible quality creditworthy 

counter parties. The quality of these trade receivables is such that management believes no impairment provision is necessary, 

except in situations where they are part of individually impaired trade receivables.

164 


NOTES TO THE 



Continued 

25 RECEIVABLES, DEPOSITS AND PREPAYMENTS (CONTINUED) 

(a) Trade receivables (continued) 

Trade receivables that are past due but not impaired 

No allowance for impairment was made in respect of these past due trade receivables based on the past historical collection 

trends. 

(b) Allowance for impairment 

Movement on the Group allowance for impairment of receivables and deposits is as follows: 

GROUP 

RESTATED 

2011 2010 

RM’000 

RM’000 

As at 1 January 95,051 180,842 

Charged to income statement 147,832 122,610 

Reversed from income statement (12,335) (4,089) 

Amount written off (141,791) (204,312) 

As at 31 December 88,757 95,051 

26 RELATED PARTIES BALANCES 

GROUP 

NOTE 2011 2010 

RM’000 

RM’000 

Current asset: 

- Amounts due from related parties (a) 16,428 13,792 

Current liability: 

- Amounts due to related parties (a) (23,214) (42,944) 

Non-current liability: 

- Loan from a related party (b) (35,668) (33,205) 

(a) The amounts due from/(to) related parties are trade in nature, unsecured, interest free and ranging from 1 to 60 days credit 

period (2010: 1 to 60 days). 

(b) Loan from a related party is unsecured and is denominated in RM. The principal and interest of the loan are repayable at the 

end of five years from the drawdown date of 9 December 2005. The loan has been extended for another five years, expiring 

on 9 December 2015. The outstanding interest on the loan at the extension date has been capitalised. The effective interest 

rate as at the reporting date is 7.60% per annum (2010: 7.30%).

MAXIS BERHAD 


165 

27 CASH AND CASH EQUIVALENTS 

Cash and cash equivalents at the end of the financial year comprise the following: 

GROUP 

COMPANY 

2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 

Deposits with licensed banks 746,194 810,486 81,262 79,414 

Cash and bank balances 91,931 87,135 143 140 

Cash and cash equivalents 838,125 897,621 81,405 79,554 

Deposits with licensed banks are held in short-term money market and fixed deposits. 

Deposits with licensed banks of the Group and of the Company at the end of the financial year have an average maturity of 14 

days (2010: 9 days) and 10 days (2010: 10 days) respectively. Bank balances are deposits held at call with banks. 

The credit quality of bank balances and deposits with licensed banks can be assessed by reference to external credit ratings as 

follows: 

GROUP 

COMPANY 

2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 

Local licensed banks (1) : 

- AAA 701,108 836,476 81,278 75,527 

- AA2 66,909 44,524 127 4,027 

- AA3 60,103 0 0 0 

Offshore licensed bank (2) : 

- Aa1 41 0 0 0 

- Aa2 0 40 0 0 

- A1 9,462 16,191 0 0 

837,623 897,231 81,405 79,554 

Source: Bloomberg with ratings provided by: 

(1) 

RAM Ratings Services Berhad 

(2) 

Moody’s

166 


NOTES TO THE 



Continued 

28 SHARE CAPITAL 

(a) Share capital 

2011 AND 2010 


’000 RM’000 

Authorised ordinary shares of RM0.10 each 

As at 1 January/ 31 December 12,000,000 1,200,000 

(b) ESOS 

Pursuant to the ESOS implemented on 17 September 2009, the Company will make available new shares, not exceeding in 

aggregate 250,000,000 shares during the existence of the ESOS, to be issued under the options granted. The ESOS is for 

the benefit of eligible employees and eligible directors (executive and non-executive) of the Group and of the Company. The 

ESOS is for a period of 10 years and is governed by the ESOS Bye-Laws as set out in the Company’s Prospectus dated 28 

October 2009 issued in relation to its initial public offering. 

An ESOS Committee comprising Directors of the Company has been set up to administer the ESOS. The ESOS Committee 

may from time to time offer share options to eligible employees and eligible directors of the Group and of the Company to 

subscribe for new ordinary shares of RM0.10 each in the Company. 

The salient features of the ESOS are as follows: 

(i) 

The total number of shares which may be issued under the ESOS shall not exceed in aggregate 10% of the Company’s 

issued and paid-up share capital at any time during the existence of the ESOS; 

(ii) Subject to the discretion of the Directors, any employee of the Company and its subsidiaries whose employment has 

been confirmed in writing and any director (executive or non-executive) of the Company, shall be eligible to participate 

in the ESOS; 

(iii) The number of new shares that may be offered under the ESOS shall be at the discretion of the Directors after taking 

into consideration the performance, seniority and number of years of service as well as the employees’ actual or potential 

contribution to the Group; 

(iv) In the event of a change in the capital structure of the Company except under certain circumstances, the Directors may 

make or provide for adjustments to be made in the option price and/or in the number of shares covered by outstanding 

options as the Directors at their discretion, may in good faith determine to be equitably required in order to prevent dilution 

or enlargement of the rights of the optionee or provide for adjustments in the number of shares to give the optionee the 

same proportion of the issued ordinary share capital of the Company to which the optionee was previously entitled; 

(v) The subscription price upon the exercise of the option under the ESOS shall be the weighted average market price quoted 

for the five market days immediately preceding the date on which the option is granted; 

(vi) The options have a contractual term of 10 years. All options shall become exercisable to the extent of one-third of the 

shares granted on each of the first three anniversaries from the date the option was granted provided the optionee has 

been in continuous service with the Group throughout the period; 

(vii) Subject to paragraph (vi) above, an optionee may exercise an option in whole or part in multiples of 100 shares only at 

such time in accordance with any guidelines as may be prescribed by the Directors from time to time; and

MAXIS BERHAD 


167 

28 SHARE CAPITAL (CONTINUED) 

(b) ESOS (continued) 

(viii) The optionees have no right to participate by virtue of the options in any share issue of any other company. However, 

shares issued upon the exercise of an option shall rank pari passu in all respects with the then existing issued shares 

save that they will not entitle the holders thereof to receive any rights or bonus issues or dividends or distributions the 

entitlement date of which precedes the date of issue of the shares. 

Movements in the number of share options outstanding and its exercise price are as follows: 

NUMBER OF OPTIONS OVER ORDINARY SHARES OF RM0.10 EACH IN THE COMPANY 

OUTSTANDING OUTSTANDING EXERCISABLE 

GRANT EXPIRY EXERCISE AS AT AS AT AS AT 

DATE DATE PRICE 1.1.2011 GRANTED EXERCISED FORFEITED 31.12.2011 31.12.2011 

RM/SHARE ’000 ’000 ’000 ’000 ’000 ’000 

2011 

1.7.2011 17.9.2019 5.45 0 11,620 0 (314) 11,306 81 

The weighted average remaining contractual life for these options as at the reporting date is 7 years 8 months. 

The weighted average fair value of options granted during the financial year determined using a modified Black Scholes 

model was RM0.18. The key inputs into the model were: 


2011 

Valuation assumptions: 

Weighted average share price at date of grant (per share) 

RM5.45 

Exercise price (per share) 

RM5.45 

Expected volatility 9.3% 

Expected option life 

8.2 years 

Expected dividend yield per annum 6.2% 

Risk-free interest rate per annum 4.3% 

The volatility measured at the standard deviation of continuously compounded share returns is based on statistical 

analysis of daily share prices since the Company’s Initial Public Offering (“Listing”). 

Value of employee services received for issue of share options: 

2011 

NOTE GROUP COMPANY 

RM’000 

RM’000 

Share options granted during the financial year 668 668 

Allocation to subsidiaries for share options 

granted to the employees of the subsidiaries 18 0 (668) 

Total expense recognised as share-based payment 668 0

168 


NOTES TO THE 



Continued 

29 RESERVES 

(a) Merger relief 

Pursuant to Section 60(4)(a) of the Companies Act, 1965, the premium on the shares issued by the Company as consideration 

for the acquisition of the subsidiaries is not recorded as share premium. The difference between the issue price and the 

nominal value of shares issued is classified as merger relief. 

(b) Reserve arising from reverse acquisition 

The difference between the issued equity of the Company and issued equity of Maxis Mobile Services Sdn. Bhd. (“MMSSB”) 

together with the deemed purchase consideration of subsidiaries other than MMSSB and the cash distribution to MCB, is 

recorded as reserve arising from reverse acquisition. 

(c) Other reserves 

SHARE-BASED 

PAYMENTS IN CASH CURRENCY 

RELATION TO SHARE FLOW TRANSLATION 

GROUP NOTE THE LISTING OPTIONS HEDGING DIFFERENCES TOTAL 

RM’000 RM’000 RM’000 RM’000 RM’000 

2011 

As at 1 January 2011 53,074 0 (98,857) 45 (45,738) 

Currency translation 

differences 0 0 0 (30) (30) 

Net change in hedging: 

- fair value losses 0 0 (14,524) 0 (14,524) 

- transfers to 

finance costs 11(b) 0 0 (95,268) 0 (95,268) 

Options granted 0 668 0 0 668 

As at 31 

December 2011 53,074 668 (208,649) 15 (154,892) 

2010 

As at 1 January 2010 53,074 0 0 10 53,084 

Currency translation 

differences 0 0 0 35 35 


- fair value losses 0 0 (348,452) 0 (348,452) 

- transfers to 

finance costs 11(b) 0 0 249,595 0 249,595 

As at 31 

December 2010 53,074 0 (98,857) 45 (45,738)

MAXIS BERHAD 


169 

29 RESERVES (CONTINUED) 

(c) Other reserves (continued) 

SHARE-BASED 

PAYMENTS IN 

RELATION TO SHARE CASH FLOW 

COMPANY NOTE THE LISTING OPTIONS HEDGING TOTAL 

RM’000 RM’000 RM’000 RM’000 

2011 

As at 1 January 2011 53,074 0 (98,857) (45,783) 


- fair value losses 0 0 (14,524) (14,524) 

- transfers to finance costs 11(b) 0 0 (95,268) (95,268) 

Options granted 0 668 0 668 

As at 31 December 2011 53,074 668 (208,649) (154,907) 

2010 

As at 1 January 2010 53,074 0 0 53,074 


- fair value losses 0 0 (348,452) (348,452) 

- transfers to finance costs 11(b) 0 0 249,595 249,595 

As at 31 December 2010 53,074 0 (98,857) (45,783) 

The share-based payment reserve represents discount on shares issued to retail investors in relation to the Listing. 

The share options reserve comprises fair value options granted less any shares issued under the ESOS. When share options are 

exercised, the proceeds received from the exercise of these options together with the corresponding share options reserve, 

net of any directly attributable transactions costs are transferred to share capital (nominal value) and share premium. If the 

share options expire or lapse, the corresponding share options reserve attributable to these options is transferred to retained 

earnings. 

The cash flow hedging reserve represents the deferred fair value losses relating to derivative financial instruments used to 

hedge certain borrowings of the Group and of the Company. 

The currency translation differences reserve comprises all foreign exchange differences arising from the translation of the 

financial statements of foreign entities.

170 


NOTES TO THE 



Continued 

30 PROVISIONS FOR LIABILITIES AND CHARGES 

GROUP 

SITE 

RECTIFICATION 

NETWORK 

AND DECOMMI- CONSTRUCTION STAFF 

SSIONING COST AND INCENTIVE 

NOTE WORKS SETTLEMENTS SCHEME TOTAL 

RM’000 RM’000 RM’000 RM’000 

As at 1 January 2011 137,063 9,350 40,060 186,473 

Capitalised during the financial year 2,516 0 0 2,516 

Changes in costs estimate on provision 

for site decommissioning works 

- included in finance costs 11(b) (36,213) 0 0 (36,213) 

- included in property, plant and equipment (10,742) 0 0 (10,742) 

Charged to the income statement 

- included in profit from operations 7 901 0 49,314 50,215 

- included in finance costs 11(b) 13,768 0 0 13,768 

Paid during the financial year (3,505) 0 (44,206) (47,711) 

Reversed from the income statement 7 0 0 (166) (166) 

As at 31 December 2011 103,788 9,350 45,002 158,140 

As at 1 January 2010 132,286 9,350 29,179 170,815 

Capitalised during the financial year 6,148 0 0 6,148 

Changes in costs estimate on provision 

for site decommissioning works 

- included in finance costs 11(b) (9,136) 0 0 (9,136) 

Charged to the income statement 

- included in profit from operations 7 47 0 49,699 49,746 

- included in finance costs 11(b) 13,397 0 0 13,397 

Paid during the financial year (1,865) 0 (27,398) (29,263) 

Reversed from the income statement 7 (3,814) 0 (11,420) (15,234) 

As at 31 December 2010 137,063 9,350 40,060 186,473 

Represented by: 

Current liabilities 10,113 9,350 45,002 64,465 

Non-current liabilities 93,675 0 0 93,675 

As at 31 December 2011 103,788 9,350 45,002 158,140 

Current liabilities 10,527 9,350 40,060 59,937 

Non-current liabilities 126,536 0 0 126,536 

As at 31 December 2010 137,063 9,350 40,060 186,473 

Descriptions of the above provisions are as disclosed in Note 3(p) to the financial statements.

MAXIS BERHAD 


171 

30 PROVISIONS FOR LIABILITIES AND CHARGES (CONTINUED) 

Site rectification and decommissioning works 

In the current financial year, a provision of RM103,788,000 (2010: RM137,063,000) has been recognised for dismantlement, 

removal and site restoration costs. The provision is estimated using the assumption that decommissioning will only take 

place upon the expiry of the lease terms (inclusive of secondary terms) of 15 to 30 years (2010: 15 to 30 years). The provision 

has been estimated based on the current conditions of the sites, at the estimated costs to be incurred upon the expiry of 

lease terms and discounted at the current market interest rate available to the Group. The provisions will be utilised over the 

remaining lease periods which range from 1 to 16 years (2010: 1 to 16 years). 

During the financial year, the Group revised the provision for decommissioning works based on the current estimated 

cost of dismantling and restoration works. The revision was accounted as a change in accounting estimate and as a result, 

the provision for site rectification and decommissioning works has decreased by RM46,955,000 with corresponding 

decreases in finance costs and carrying amount of property, plant and equipment by RM36,213,000 and RM10,742,000 

respectively in the current financial year. 

Network construction cost and settlements 

In the Directors’ opinion, the outcome of the notices of termination, legal claims, negotiations for settlements and costs in respect 

of obligations under network construction contracts will not give rise to any significant loss beyond the amounts provided at the 

reporting date. 

31 PAYABLES AND ACCRUALS 

GROUP 

COMPANY 

2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 

Current 

Intercarrier and roaming payables 39,474 55,222 0 0 

Intercarrier and roaming accruals 62,865 62,493 0 0 

Subscribers’ deposits 132,743 141,019 0 0 

Trade payables 908,256 1,095,827 0 0 

Trade accruals 390,490 348,217 0 0 

Other payables 111,625 114,008 39 11 

Other accruals 763,053 842,400 1,777 1,597 

Advance payments from subscribers 46,661 38,287 0 0 

Deferred income 365,235 399,551 0 0 

Payroll liabilities 5,398 4,693 0 0 

Government grant 2,455 3,640 0 0 

Non-current 

2,828,255 3,105,357 1,816 1,608 

Trade payables 59,351 41,884 0 0 

Other accruals 1,213 4,322 0 0 

60,564 46,206 0 0 

2,888,819 3,151,563 1,816 1,608

172 


NOTES TO THE 



Continued 

31 PAYABLES AND ACCRUALS (CONTINUED) 

Current trade payables and other payables of the Group and of the Company carry credit period up to 120 days (2010: 120 days). 

The non-current trade payables include an amount of RM53,985,000 (2010: RM25,704,000) which is payable under deferred 

payment schemes, repayable on a half-yearly basis in 10 equal instalments commencing 30 months from the effective date and 

carry an interest rate of 2.49% (2010: 2.21%) per annum as at the reporting date. 

Other accruals include lease equalisation for office buildings with the remaining lease periods ranging from 6 months to 1 year 5 

months (2010: 1 year 6 months to 2 years 5 months). 

32 BORROWINGS 

GROUP 

COMPANY 

NOTE 2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 

Current 

Secured 

Finance lease liabilities (a) 13,846 13,201 0 0 

Unsecured 

Term loan (b) 1,450,104 0 1,450,104 0 

Non-current 

1,463,950 13,201 1,450,104 0 

Secured 

Finance lease liabilities (a) 21,707 17,020 0 0 

Unsecured 

Syndicated term loans (c) 2,671,802 2,595,934 2,671,802 2,595,934 

Term loans (b) 1,715,609 2,447,713 1,715,609 2,447,713 

(a) Finance lease liabilities 

4,409,118 5,060,667 4,387,411 5,043,647 

5,873,068 5,073,868 5,837,515 5,043,647 

The Group leases office equipment and motor vehicles under finance leases with lease terms of 3 to 5 years. 

Office equipment leased under the finance lease comprise mainly of Information Technology assets. The remaining lease 

terms are between 1 to 4 years (2010: 1 to 5 years). The Group has an option for extension for two further successive 

periods of up to 12 months. Contingent rental is based on a revenue sharing model and are charged as expenses in the 

period in which they are incurred. At the end of the lease term, title to the assets will be transferred to the Group upon 

full payment being made. 

The finance leases for motor vehicles have remaining lease terms of 4 to 5 years (2010: 1 year). The leases have option for 

renewal for one year with no arrangement for contingent rental.

MAXIS BERHAD 


173 

32 BORROWINGS (CONTINUED) 

(a) Finance lease liabilities (continued) 

The weighted average effective interest rate of the Group’s finance lease liabilities is 15.44% (2010: 14.37%) per annum. 

The finance lease liabilities are effectively secured as: 

(i) 

the rights to the leased motor vehicles revert to the lessor in the event of defaults; and 

(ii) the title to the office equipment remain with the lessor until payment of the termination and/or exit charges. 

Finance lease liabilities represent outstanding obligations payable in respect of office equipment and motor vehicles 

acquired under finance lease commitment and are analysed as follows: 

GROUP 

2011 2010 

RM’000 

RM’000 

Not later than one year 18,377 17,548 

Later than one year and not later than five years 24,967 23,102 

43,344 40,650 

Less: Future finance charges (7,791) (10,429) 

Present value 35,553 30,221 

Representing lease liabilities: 

- Current 13,846 13,201 

- Non-current 21,707 17,020 

(b) Non-current and current unsecured term loans 

35,553 30,221 

(i) 

RM2,450,000,000 term loan 

In 2010, the Company drew down a term loan facility of RM2,450,000,000 which has a tenure of two years from the 

draw down date and is repayable in one lump sum at the end of the tenure. During the financial year, the Company has 

partly refinanced the term loan facility of RM1,000,000,000 with a new term loan facility of the same amount. 

(ii) RM1,000,000,000 term loan 

The new term loan facility of RM1,000,000,000 described in (i) above has a tenure of 11 years from the first draw down 

date, 27 December 2011, and is repayable in one lump sum at the end of the tenure.

174 


NOTES TO THE 



Continued 


(b) Non-current and current unsecured term loans (continued) 

(iii) USD100,000,000 term loans 

These loans of USD50,000,000 each have tenure of 10 years from the first draw down date, 28 February 2011, and are 

hedged by using CCIRS as disclosed in Note 22 to the financial statements to hedge against fluctuation in the USD/RM 

exchange rate and fluctuations in LIBOR on its term loan. They are repayable in one lump sum at the end of the tenure, 

28 February 2021. 

(iv) SGD70,000,000 term loan 

This loan has a tenure of 10 years from the first draw down date, 28 February 2011, and is hedged by using CCIRS 

as disclosed in Note 22 to the financial statements to hedge against fluctuation in the SGD/RM exchange rate and 

fluctuations in SOR on its term loan. It is repayable in one lump sum at the end of the tenure, 28 February 2021. 

(v) USD75,000,000 term loan 

This loan has a tenure of 10 years from the first draw down date, 14 June 2011, and is hedged by using CCIRS as disclosed 

in Note 22 to the financial statements to hedge against fluctuation in the USD/RM exchange rate and fluctuations in 

LIBOR on its term loan. It is repayable in one lump sum at the end of the tenure, 14 June 2021. 

(c) Non-current unsecured syndicated term loans 

(i) 

USD750,000,000 syndicated term loan 

This loan has a tenure of 7 years from the first draw down date, 24 February 2010, and is hedged by using CCIRS 

as disclosed in Note 22 to the financial statements to hedge against fluctuation in the USD/RM exchange rate and 

fluctuations in LIBOR on its syndicated term loan. The loan is repayable semi-annually commencing 24 August 2014. 

(ii) USD100,000,000 syndicated term loan 

This loan has a tenure of 10 years from the first draw down date, 13 August 2010, and is hedged by using CCIRS 

as disclosed in Note 22 to the financial statements to hedge against fluctuation in the USD/RM exchange rate and 

fluctuations in LIBOR on its syndicated term loan. It is repayable in one lump sum at the end of the tenure, 13 

August 2020.

MAXIS BERHAD 


175 


Contractual terms of borrowings 

CONTRACTUAL 

INTEREST RATE 

FUNCTIONAL 

AT REPORTING CURRENCY/ TOTAL 

DATE CURRENCY CARRYING MATURITY PROFILE 

GROUP (PER ANNUM) EXPOSURE AMOUNT < 1 YEAR 1-2 YEARS 2-5 YEARS > 5 YEARS 

% RM’000 RM’000 RM’000 RM’000 RM’000 

At 31 December 2011 

Secured 

Finance lease liabilities RM/RM 35,553 13,846 10,613 11,094 0 

Unsecured 

Syndicated term loans 1.35% - 1.60% + LIBOR (1) RM/USD 2,671,802 0 0 1,943,482 728,320 

Term loans 0.75% - 1.25% + COF (2) RM/RM 2,445,391 1,450,104 0 0 995,287 

1.50% - 1.60% + LIBOR (1) RM/USD 550,501 0 0 0 550,501 

1.25% + SOR (3) RM/SGD 169,821 0 0 0 169,821 

5,873,068 1,463,950 10,613 1,954,576 2,443,929 


Secured 

Finance lease liabilities RM/RM 30,221 13,201 6,880 10,140 0 

Unsecured 

Syndicated term loans 1.35% - 1.60% + LIBOR (1) RM/USD 2,595,934 0 0 1,129,400 1,466,534 

Term loan 1.15% + COF (2) RM/RM 2,447,713 0 2,447,713 0 0 

5,073,868 13,201 2,454,593 1,139,540 1,466,534 

(1) 

LIBOR denotes London Interbank Offered Rate. 

(2) 

COF denotes Cost of Funds. 

(3) 

SOR denotes Singapore Swap Offer Rate.

176 


NOTES TO THE 



Continued 


Contractual terms of borrowings (continued) 

CONTRACTUAL 

INTEREST RATE 

FUNCTIONAL 

AT REPORTING CURRENCY/ TOTAL 

DATE CURRENCY CARRYING MATURITY PROFILE 

COMPANY (PER ANNUM) EXPOSURE AMOUNT < 1 YEAR 1-2 YEARS 2-5 YEARS > 5 YEARS 

% RM’000 RM’000 RM’000 RM’000 RM’000 


Unsecured 

Syndicated term loans 1.35% - 1.60% + LIBOR (1) RM/USD 2,671,802 0 0 1,943,482 728,320 

Term loans 0.75% - 1.25% + COF (2) RM/RM 2,445,391 1,450,104 0 0 995,287 

1.50% - 1.60% + LIBOR (1) RM/USD 550,501 0 0 0 550,501 

1.25% + SOR (3) RM/SGD 169,821 0 0 0 169,821 

5,837,515 1,450,104 0 1,943,482 2,443,929 


Unsecured 

Syndicated term loans 1.35% - 1.60% + LIBOR (1) RM/USD 2,595,934 0 0 1,129,400 1,466,534 

Term loan 1.15% + COF (2) RM/RM 2,447,713 0 2,447,713 0 0 

5,043,647 0 2,447,713 1,129,400 1,466,534 

(1) 

LIBOR denotes London Interbank Offered Rate. 

(2) 

COF denotes Cost of Funds. 

(3) 

SOR denotes Singapore Swap Offer Rate.

MAXIS BERHAD 


177 

33 FINANCIAL RISK MANAGEMENT 

The Group’s activities expose it to a variety of financial risks, including market risk (interest rate risk and foreign exchange risk), 

credit risk, liquidity risk and capital risk. The Group’s overall risk management programme focuses on the unpredictability 

of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance. The Group uses 

derivative financial instruments to hedge designated risk exposures of the underlying hedge items and does not enter into 

derivative financial instruments for speculative purposes. 

Financial risk management is carried out by the Chief Financial Officer in consultation with the relevant departments under 

policies/mandates approved by the Board of Directors. The policy provides written principles for overall risk management, as well 

as written policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk and use of derivative financial 

instruments. 

(a) Market risk 

Market risk is the risk that the fair value or future cash flow of the financial instruments that the Group has will fluctuate 

because of changes in market prices. The various components of market risk that the Group is exposed to are discussed 

below. 

(i) Foreign exchange risk 

The objectives of the Group’s currency risk management policies are to allow the Group to effectively manage the 

foreign exchange fluctuation against its functional currency that may arise from future commercial transactions 

and recognised assets and liabilities. Forward foreign currency exchange contracts are used to manage foreign 

exchange exposures arising from all known material foreign currency denominated commitments as and when they 

arise and to hedge the movements in exchange rates by establishing the rate at which a foreign currency monetary 

item will be settled. Gains and losses on foreign currency forward contracts entered into as hedges of foreign 

currency monetary items are recognised in the financial statements when the exchange differences of the hedged 

monetary items are recognised in the financial statements. Cross currency interest rate swap contracts are also used 

to hedge the volatility in the cash flow attributable to variability in the foreign currency denominated borrowings 

from the inception to maturity of the borrowings. 

The currency exposure of financial assets and financial liabilities of the Group and Company that are not 

denominated in the functional currency of the respective companies are set out below. Currency risks in respect of 

intragroup receivables and payables have been included in the Group’s currency exposure table as this exposure is 

not eliminated at the Group level.

178 


NOTES TO THE 



Continued 

33 FINANCIAL RISK MANAGEMENT (CONTINUED) 

(a) Market risk (continued) 

(i) Foreign exchange risk (continued) 

CURRENCY EXPOSURE AT 31 DECEMBER 2011 

GROUP SGD USD SDR EURO OTHERS 

RM’000 RM’000 RM’000 RM’000 RM’000 

Functional currency 

Ringgit Malaysia 

Receivables 0 23,364 62,411 138 2 

Deposits, bank and 

cash balances 0 24,838 0 0 41 

Payables (412) (243,342) (35,861) (134) (5,568) 

Amounts due from 

related parties, net 0 2,176 141 20 0 

Syndicated term loans 0 (2,671,802) 0 0 0 

Term loans (169,821) (550,501) 0 0 0 

Gross exposure (170,233) (3,415,267) 26,691 24 (5,525) 

CCIRS 

- Syndicated term loans 0 2,671,802 0 0 0 

- Term loans 169,821 550,501 0 0 0 

Net exposure (412) (192,964) 26,691 24 (5,525) 


SGD USD SDR EURO OTHERS 

RM’000 RM’000 RM’000 RM’000 RM’000 



Receivables 0 29,927 17,989 304 0 


cash balances 0 23,126 0 0 40 

Payables (962) (169,669) (6,552) (89) (1,527) 

Amounts due (to)/from 

related parties, net 0 (4,368) 255 0 0 


Gross exposure (962) (2,716,918) 11,692 215 (1,487) 

CCIRS 


Net exposure (962) (120,984) 11,692 215 (1,487)

MAXIS BERHAD 


179 





COMPANY SGD USD SDR EURO OTHERS 

RM’000 RM’000 RM’000 RM’000 RM’000 




cash balances 0 1 0 0 0 


Term loans (169,821) (550,501) 0 0 0 

Gross exposure (169,821) (3,222,302) 0 0 0 

CCIRS 


- Term loans 169,821 550,501 0 0 0 

Net exposure 0 1 0 0 0 


SGD USD SDR EURO OTHERS 

RM’000 RM’000 RM’000 RM’000 RM’000 




cash balances 0 1 0 0 0 


Gross exposure 0 (2,595,933) 0 0 0 

CCIRS 


Net exposure 0 1 0 0 0 

The sensitivity of the Group’s profit before tax for the year and equity to a reasonably possible change in the USD 

exchange rates against the Group’s functional currency, RM, with all other factors remaining constant and based on the 

composition of assets and liabilities at the reporting date are set out as below.

180 


NOTES TO THE 



Continued 




IMPACT ON PROFIT BEFORE TAX FOR THE YEAR IMPACT ON EQUITY (1) 

GROUP AND 

GROUP COMPANY COMPANY 

2011 2010 2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 

USD/RM 

- strengthened 5% 

(2010: 5%) (9,648) (6,049) 0 0 13,268 10,860 

- weakened 5% 

(2010: 5%) 9,648 6,049 0 0 (13,268) (10,860) 

(1) 

Represents cash flow hedging reserve 

The impacts on profit before tax for the year are mainly as a result of foreign currency gains/losses on translation of 

USD denominated receivables, deposits, bank balances and payables. For USD denominated borrowings, as these are 

effectively hedged, the foreign currency movements will not have any impact on the income statement. 

Other balances denominated in foreign currencies are not significant and hence, profit is not materially impacted. 

(ii) Interest rate risk 

The Group’s interest rate risk arises from deposits with licensed banks, deferred payment creditors, borrowings and loan 

from a related party carrying fixed and variable interest rates. The objectives of the Group’s interest risk management 

policies are to allow the Group to effectively manage the interest rate fluctuation through the use of fixed and floating 

interest rate debt and derivative financial instruments. The Group adopts a non-speculative stance which favours 

predictability over short-term interest rate fluctuations. The interest rate profile of the Group’s borrowings is also 

regularly reviewed against prevailing and anticipated market interest rates to determine whether refinancing or early 

repayment is warranted. 

The Group manages its cash flow interest rate risk by using cross currency interest rate swaps. Such swaps have the 

economic effect of converting certain borrowings from floating rates to fixed rates.

MAXIS BERHAD 


181 



(ii) Interest rate risk (continued) 

The net exposure of financial assets and financial liabilities of the Group and of the Company to interest rate risk (before 

and after taking effect of cross currency interest rate swap contract) and the periods in which the borrowings mature or 

reprice (whichever is earlier) are as follows: 

WEIGHTED 

AVERAGE EFFECTIVE 

FLOATING 

INTEREST RATE AT TOTAL INTEREST 

REPORTING DATE CARRYING RATE FIXED INTEREST RATE 

GROUP (PER ANNUM) AMOUNT < 1 YEAR < 1 YEAR 1-2 YEARS 2-5 YEARS > 5 YEARS 

% RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 


Deposits with licensed banks 3.02 746,194 0 746,194 0 0 0 

Trade payables 2.49 (53,985) (53,985) 0 0 0 0 

Finance lease liabilities 15.44 (35,553) 0 (13,846) (10,613) (11,094) 0 

Syndicated term loans 2.13 (2,671,802) (2,671,802) 0 0 0 0 

Term loans 4.06 (3,165,713) (3,165,713) 0 0 0 0 

Loan from a related party 7.60 (35,668) (35,668) 0 0 0 0 

Gross exposure (5,216,527) (5,927,168) 732,348 (10,613) (11,094) 0 

CCIRS 

- Syndicated term loans 4.81 2,671,802 0 0 (1,943,482) (728,320) 

- Term loans 4.19 237,483 0 0 0 (237,483) 

Net exposure (3,017,883) 732,348 (10,613) (1,954,576) (965,803)

182 


NOTES TO THE 



Continued 




The net exposure of financial assets and financial liabilities of the Group and of the Company to interest rate risk (before 

and after taking effect of cross currency interest rate swap contract) and the periods in which the borrowings mature or 

reprice (whichever is earlier) are as follows: 

WEIGHTED 


FLOATING 



GROUP (PER ANNUM) AMOUNT < 1 YEAR < 1 YEAR 1-2 YEARS 2-5 YEARS > 5 YEARS 

% RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 



Trade payables 2.21 (25,704) (25,704) 0 0 0 0 

Finance lease liabilities 14.37 (30,221) 0 (13,201) (6,880) (10,140) 0 


Term loan 4.38 (2,447,713) (2,447,713) 0 0 0 0 

Loan from a related party 7.30 (33,205) (33,205) 0 0 0 0 

Gross exposure (4,322,291) (5,102,556) 797,285 (6,880) (10,140) 0 

CCIRS 

- Syndicated term loans 4.81 2,595,934 0 0 (1,129,400) (1,466,534) 

Net exposure (2,506,622) 797,285 (6,880) (1,139,540) (1,466,534)

MAXIS BERHAD 


183 




WEIGHTED 


FLOATING 



COMPANY (PER ANNUM) AMOUNT < 1 YEAR < 1 YEAR 1-2 YEARS 2-5 YEARS > 5 YEARS 

% RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 


Loans to subsidiaries 4.89 1,358,792 153,034 0 0 758,404 447,354 



Term loans 4.06 (3,165,713) (3,165,713) 0 0 0 0 

Gross exposure (4,397,461) (5,684,481) 81,262 0 758,404 447,354 

CCIRS 

- Syndicated term loans 4.81 2,671,802 0 0 (1,943,482) (728,320) 

- Term loans 4.19 237,483 0 0 0 (237,483) 

Net exposure (2,775,196) 81,262 0 (1,185,078) (518,449) 


Loans to subsidiaries 5.17 1,522,717 0 0 0 0 1,522,717 



Term loan 4.38 (2,447,713) (2,447,713) 0 0 0 0 

Gross exposure (3,441,516) (5,043,647) 79,414 0 0 1,522,717 

CCIRS 

- Syndicated term loans 4.81 2,595,934 0 0 (1,129,400) (1,466,534) 

Net exposure (2,447,713) 79,414 0 (1,129,400) 56,183

184 


NOTES TO THE 



Continued 




The sensitivity of the Group’s profit before tax for the year and equity to a reasonably possible change in RM, USD 

and SGD interest rates with all other factors held constant and based on composition of liabilities with floating 

interest rates at the reporting date are as follows: 

IMPACT ON PROFIT BEFORE TAX FOR THE YEAR IMPACT ON EQUITY (1) 

GROUP AND 

GROUP COMPANY COMPANY 

2011 2010 2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 

RM 

- increased 

by 0.5% 

(2010: 0.5%) (12,392) (12,405) (11,462) (12,239) 0 0 

- decreased 

by 0.5% 

(2010: 0.5%) 12,392 12,405 11,462 12,239 0 0 

USD 

- increased 

by 0.5% 

(2010: 0.5%) (270) (129) 0 0 65,384 54,171 

- decreased 

by 0.5% 

(2010: 0.5%) 270 129 0 0 (65,384) (54,171) 

SGD 

- increased 

by 0.5% 

(2010: 0.5%) 0 0 0 0 6,527 0 

- decreased 

by 0.5% 

(2010: 0.5%) 0 0 0 0 (6,527) 0 

(1) 

Represents cash flow hedging reserve 

The impacts on profit before tax for the year are mainly as a result of interest expenses/income on floating rate payables, 

loan from a related party and borrowings not in a designated hedging relationship. For borrowings in a designated hedging 

relationship, as these are effectively hedged, the interest rate movements will not have any impact on the income statement.

MAXIS BERHAD 


185 


(b) Credit risk 

The objectives of the Group’s credit risk management policies are to manage its exposure to credit risk from deposits, cash 

and bank balances, receivables and derivative financial instruments. It does not expect any third parties to fail to meet their 

obligations given the Group’s policy of selecting creditworthy counter parties. 

The Group has no significant concentration of credit risk as the Group’s policy limits the concentration of financial 

exposure to any single counterparty. Credit risk of trade receivables is controlled by the application of credit approvals, 

limits and monitoring procedures. Credit risks are minimised and monitored via limiting the Group’s dealings with 

creditworthy business partners and customers. Trade receivables are monitored on an on-going basis via the Group’s 

management reporting procedures. 

For deposits, cash and bank balances, the Group seeks to ensure that cash assets are invested safely and profitably by 

assessing counterparty risks and allocating placement limits for various creditworthy financial institutions. As for derivative 

financial instruments, the Group enters into the contracts with various reputable counterparties to minimise the credit risks. 

The Group considers the risk of material loss in the event of non-performance by the above parties to be unlikely. The Group’s 

maximum exposure to credit risk is equal to the carrying value of those financial instruments. 

(c) Liquidity risk 

The objectives of the Group’s liquidity risk management policies are to monitor rolling forecasts of the Group’s liquidity 

requirements to ensure it has sufficient cash to meet operational needs, availability of funding by keeping committed credit 

lines and to meet external covenant compliance. Surplus cash held is invested in interest bearing money market deposits and 

time deposits. The Group is exposed to liquidity risk where there could be difficulty in raising funds to meet commitments 

associated with financial instruments.

186 


NOTES TO THE 



Continued 


(c) Liquidity risk (continued) 

The undiscounted contractual cash flow payables under the financial instruments as at the reporting date are as follows: 

TOTAL (1) < 1 YEAR 1-2 YEARS 2-5 YEARS > 5 YEARS 

RM’000 RM’000 RM’000 RM’000 RM’000 

Group 


Payables and accruals (2) 

- Principal 1,691,076 1,641,277 12,009 32,391 5,399 

- Interest (3) 4,343 1,342 1,137 1,799 65 

Amounts due to related parties 23,214 23,214 0 0 0 

Amounts due to 

fellow subsidiaries 246 246 0 0 0 

Loan from a related party 

- Principal 33,060 0 0 33,060 0 

- Interest (3) 12,514 0 0 12,514 0 

Finance lease liabilities 43,344 18,377 13,346 11,621 0 

Bank borrowings (2) 

- Principal 5,869,466 1,450,000 0 1,960,819 2,458,647 

- Interest (3) 854,265 119,487 108,597 279,869 346,312 

Net settled derivative financial 

instruments (CCIRSs) (2)(3) 675,236 100,999 100,982 367,206 106,049 

9,206,764 3,354,942 236,071 2,699,279 2,916,472 

(1) 

As the amounts included in the table are the contractual undiscounted cash flows, these amounts will not reconcile with the amounts disclosed in the 

statements of financial position. 

(2) 

Foreign denominated financial instruments are translated to RM using closing rate as at the reporting date. 

(3) 

Based on contractual interest rates as at the reporting date.

MAXIS BERHAD 


187 




(continued) 


RESTATED 

RESTATED 

RM’000 RM’000 RM’000 RM’000 RM’000 

Group 


Payables and accruals (2) 

- Principal 1,837,837 1,807,811 5,680 16,635 7,711 

- Interest (3) 2,488 614 578 1,123 173 

Amounts due to related parties 42,944 42,944 0 0 0 

Amount due to a fellow 

subsidiary 1,203 1,203 0 0 0 

Amount due to immediate 


Loan from a related party 

- Principal 33,060 0 0 33,060 0 

- Interest (3) 12,067 0 0 12,067 0 

Finance lease liabilities 40,650 17,548 10,600 12,502 0 


- Principal 5,074,374 0 2,450,000 1,146,234 1,478,140 

- Interest (3) 373,725 150,508 61,819 118,565 42,833 



8,177,139 2,114,080 2,622,265 1,705,537 1,735,257 

(1) 



(2) 


(3) 


188 


NOTES TO THE 



Continued 




(continued) 


RM’000 RM’000 RM’000 RM’000 RM’000 

Company 


Payables and accruals 1,816 1,816 0 0 0 

Amounts due to subsidiaries 1,155 1,155 0 0 0 


- Principal 5,869,466 1,450,000 0 1,960,819 2,458,647 

- Interest (3) 854,265 119,487 108,597 279,869 346,312 




7,401,938 1,673,457 209,579 2,607,894 2,911,008 

Payables and accruals 1,608 1,608 0 0 0 

Amounts due to subsidiaries 963 963 0 0 0 


- Principal 5,074,374 0 2,450,000 1,146,234 1,478,140 

- Interest (3) 373,725 150,508 61,819 118,565 42,833 



6,209,342 246,412 2,605,407 1,630,150 1,727,373 

(1) 



(2) 


(3) 


MAXIS BERHAD 


189 


(d) Capital risk management 

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern while 

at the same time provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital 

structure to reduce the cost of capital. 

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, issue 

new shares or return capital to shareholders. 

The Group is also required by the external lenders to maintain financial covenant ratios on net debt to EBITDA and EBITDA to 

interest expense. These financial covenant ratios have been fully complied with by the Group for the financial year ended 31 

December 2011 and 31 December 2010. 

The Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total equity. Net 

debt is calculated as total interest bearing financial liabilities (including loan from a related party, current and non-current 

borrowings and derivative financial instruments on a net basis and non-current trade payables as shown in the statement of 

financial position and Note 31 to the financial statements respectively) less cash and cash equivalents. Total equity is 

calculated as ‘equity’ as shown in the statement of financial position. The gearing ratios at 31 December 2011 and 2010 were 

as follows: 

GROUP 

NOTE 2011 2010 

RM’000 

RM’000 

Total interest bearing financial liabilities 6,331,063 5,497,409 

Less: Cash and cash equivalents 27 (838,125) (897,621) 

Net debt 5,492,938 4,599,788 

Total equity 8,088,384 8,666,699 

Gearing ratios 0.68 0.53 

The increase in the gearing ratio as at 31 December 2011 is primarily due to the additional borrowings drawn down during 

the financial year.

190 


NOTES TO THE 



Continued 


(e) Fair value estimation 

(i) 

Financial instruments carried at amortised cost 

The carrying amounts of non-current financial assets and liabilities of the Group and of the Company at the reporting 

date approximated their fair values except as set out below: 

GROUP 

COMPANY 

CARRYING FAIR CARRYING FAIR 

NOTE AMOUNT VALUE AMOUNT VALUE 

RM’000 RM’000 RM’000 RM’000 






Borrowings 

- Finance lease liabilities 32(a) 21,707 19,458 0 0 






Borrowings 

- Finance lease liabilities 32(a) 17,020 15,048 0 0 

The basis for determining fair values is disclosed in Note 3(i) to the financial statements.

MAXIS BERHAD 


191 


(e) Fair value estimation (continued) 

(ii) Financial instruments carried at fair value 

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been 

defined as follows: 

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. 

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either 

directly (i.e. as prices) or indirectly (i.e. derived from prices). 

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). 

The following table represents the assets and liabilities measured at fair value, using Level 2 valuation method, at 

reporting date: 


NOTE 2011 2010 

RM’000 

RM’000 

Derivative financial instruments (CCIRSs): 

- Assets 3,201 0 

- Liabilities (366,177) (348,452) 

22 (362,976) (348,452) 

34 CAPITAL COMMITMENTS 

Capital expenditure for property, plant and equipment approved by the Directors and not provided for in the financial statements 

as at the reporting date is as follows: 

GROUP 

2011 2010 

RM’000 

RM’000 

Contracted for 177,104 477,651 

Not contracted for 820,554 1,068,717 

997,658 1,546,368

192 


NOTES TO THE 



Continued 

35 OPERATING LEASE COMMITMENTS 

Generally, the Group leases certain network infrastructure, offices and customer service centres under operating leases. The 

leases run for a period of 2 to 15 years (2010: 2 to 15 years). Certain operating leases contain renewal options with market review 

clauses. The Group does not have the option to purchase the leased assets at the expiry of the lease period. 

The future minimum lease payments under non-cancellable operating leases are as follows: 

GROUP 

2011 2010 

RM’000 

RM’000 

Not later than one year 160,788 159,577 

Later than one year but not later than five years 419,541 461,828 

Later than five years 111,216 137,577 

691,545 758,982 

Included in the future minimum lease payments are lease commitments for network infrastructure which are subject to variation 

based on the number of co-sharing parties for each individual site. 

36 RELATED PARTIES 

In addition to related party disclosures mentioned elsewhere in the financial statements, set out below are other significant 

transactions and balances. The related party transactions described below were carried out on agreed terms with the related 

parties. None of these balances are secured. 

Sales of goods and services to: 

GROUP 

TRANSACTION VALUE 

BALANCE OUTSTANDING 

2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 

- MEASAT Broadcast Network Systems Sdn. Bhd. (1) 

(VSAT, telephony and international bandwidth services) 37,279 33,320 6,447 7,076 

- Saudi Telecom Company (“STC”) (2) 

(roaming and international calls) 14,035 10,980 2,312 248 

- Aircel Limited Group (3) 

(interconnect, roaming and international calls) 13,779 37,712 17 10 

Purchases of goods and services from: 

- Aircel Limited Group (3) 

(interconnect, roaming and international calls) 14,371 42,409 (263) (1,203) 

- Sri Lanka Telecom PLC Group (4) 

(roaming and international calls) 820 13,585 (80) (589)

MAXIS BERHAD 


193 

36 RELATED PARTIES (CONTINUED) 

GROUP 

TRANSACTION VALUE 

BALANCE OUTSTANDING 

2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 

Purchases of services from: (continued) 

- Tanjong City Centre Property Management Sdn. Bhd. (5) 

(rental, signage, parking and utility charges) 38,418 32,909 5,627 (102) 

- MEASAT Satellite Systems Sdn. Bhd. (6) 

(transponder lease rental) 18,942 18,348 0 (4,979) 

- Digital Five Sdn. Bhd. (1) 

(contents provision and publishing and advertising agent) 16,588 21,043 (9,004) (16,972) 

(1) (9) 

- MEASAT Broadcast Network Systems Sdn. Bhd. 

(advertising, mobile, video and online content and 

sponsorship of events) 8,656 51,831 (1,319) (5,958) 

- UTSB Management Sdn. Bhd. (5) 

(secondment and consultancy services) 25,000 25,000 (2,208) (6,563) 

- SRG Asia Pacific Sdn. Bhd. (5) 

(call handling and telemarketing services) 23,299 22,650 (5,194) (2,948) 

- STC (2) 

(roaming and international calls) 4,049 15,005 0 (4,367) 

- UMTS (Malaysia) Sdn. Bhd. (7) 

(usage 3G spectrum) 30,037 24,947 (2,704) (2,330) 

Payment on behalf of operating expenses by MCB (8) 520 23,707 0 0 

The Group has entered into the above related party transactions with parties whose relationships are set out below. 

Usaha Tegas Sdn. Bhd. (“UTSB”), Saudi Telecom Company (“STC”) and Harapan Nusantara Sdn. Bhd. (“Harapan Nusantara”) are 

related parties to the Company, by virtue of having joint control over MCB via Binariang GSM Sdn. Bhd. (“BGSM”), pursuant to a 

shareholders’ agreement in relation to BGSM. MCB is the immediate holding company of the Company. 

UTSB is ultimately controlled by PanOcean Management Limited (“PanOcean”), via Excorp Holdings N.V. and Pacific States 

Investment Limited, the intermediate and immediate holding companies of UTSB respectively. PanOcean is the trustee of 

a discretionary trust, the beneficiaries of which are members of the family of Ananda Krishnan Tatparanandam (“TAK”) 

and foundations including those for charitable purposes. Although PanOcean and TAK are deemed to have an interest 

in the shares of the Company through UTSB’s deemed interest in BGSM and MCB, they do not have any economic or 

beneficial interest in the shares as such interest is held subject to the terms of the discretionary trust. 

TAK also has a deemed interest in the shares of the Company via an entity which is a direct shareholder of BGSM and held by 

companies ultimately controlled by TAK. 

(1) 

Subsidiary of Astro Holdings Sdn. Bhd. (“AHSB”), an associate of UTSB 

(2) 

A major shareholder of BGSM, who has joint control over BGSM, the ultimate holding company of the Company 

(3) 

Subsidiaries of MCB 

(4) 

Associate of UTSB 

(5) 

Subsidiary of UTSB 

(6) 

A company controlled by TAK 

(7) 

Subsidiary of the Company and associate of AHSB. The transaction values and outstanding balances are eliminated in the consolidated financial statements 

(8) 

The immediate holding company of the Company 

(9) 

Includes sponsorship of events and mobile and online content services of RM4,904,000 (2010: RM50,381,000) transacted on normal commercial terms with 

independent media buying agency

194 


NOTES TO THE 



Continued 

36 RELATED PARTIES (CONTINUED) 

COMPANY 

2011 2010 

RM’000 

RM’000 

Amount charged by a subsidiary: 

- management fees 11,743 10,790 

Payment on behalf of operating expenses for subsidiaries 1,077 134,084 

37 CHANGES IN COMPARATIVE INFORMATION 

(a) Restatement of the segment reporting for the financial year ended 31 December 2010 

An additional reportable operating segment, Home services, which was previously included in the Fixed line services segment 

has been reported as a separate reportable operating segment in line with the internal reporting provided to the chief 

operating decision-makers. The descriptions of the reportable operating segments are disclosed in Note 5 to the financial 

statements. 

As a result, the comparative segment information for the financial year ended 31 December 2010 as disclosed in Notes 5 and 

6 to the financial statements have been restated to conform with the segment reporting presented in the current financial 

year ended 31 December 2011. 

AS 

PREVIOUSLY 

STATED 

AS RESTATED 

FIXED ENTERPRISE 

LINE FIXED HOME 

BUSINESS SEGMENT SERVICES SERVICES SERVICES 

RM’000 RM’000 RM’000 


External revenue 184,910 167,655 17,255 

Inter-segment revenue 27,739 27,446 293 

Segment revenue 212,649 195,101 17,548 


Segment operating profit 48,388 34,633 13,755 

Depreciation and amortisation 29,659 28,705 954 

Other material non-cash items 4,032 2,795 1,237 

Additions to non-current assets 94,951 26,707 68,244

MAXIS BERHAD 


195 

37 CHANGES IN COMPARATIVE INFORMATION (CONTINUED) 

(b) Restatement of the statement of cash flows and notes to the financial statements for the financial year ended 31 

December 2010 

The following line items in the Group’s statement of cash flows and notes to the financial statements as presented in Notes 

5(a), 7, 9, 19 and 25(b) to the financial statements for the financial year ended 31 December 2010 have been restated to 

conform to the current financial year’s presentation. 

AS 

PREVIOUSLY RECLASS- AS 

STATED FICATIONS RESTATED 

RM’000 RM’000 RM’000 

Group 

Statement of cash flows and 

Notes 5(a) and 7 to the financial statements: 

Allowance for impairment of receivables, deposits and prepayments 7,164 115,446 122,610 

Reversal of allowance for impairment of receivables, deposits 

and prepayments (92,955) 88,866 (4,089) 

Allowance/(reversal) (net) for impairment of receivables, deposits 

and prepayments (85,791) 204,312 118,521 

Bad debts written off 204,312 (204,312) 0 

Note 7 to the financial statements: 

Commissions, sales and marketing expenses 408,869 240,236 649,105 


Salaries and other short-term employee benefits 28,772 (4,514) 24,258 

Defined contribution plan 1,288 19 1,307 

ESOS – Equivalent Cash Consideration 283 (2) 281 

Estimated monetary value of benefit-in-kind 2,795 (1,432) 1,363 


33,138 (5,929) 27,209 


Payables and accruals 2,713,725 (859,670) 1,854,055 

Note 25(b) to the financial statements: 

Movement on allowance for impairment of 

receivables and deposits: 

As at 1 January 2010 180,842 0 180,842 

Charged to income statement 7,164 115,446 122,610 

Reversed from income statement (92,955) 88,866 (4,089) 

Amount written off 0 (204,312) (204,312) 

As at 31 December 2010 95,051 0 95,051

196 


NOTES TO THE 



Continued 

38 CONTINGENT LIABILITIES 

In the normal course of business, the Group and the Company incur certain contingent liabilities arising from legal recourse 

sought by its customers. No material losses are anticipated as a result of these transactions. 

The following contingent liabilities have not been provided for in the financial statements, as it is not anticipated that any material 

liabilities will arise from these contingencies. 

GROUP 

2011 2010 

RM’000 

RM’000 

Indemnity given to financial institutions - unsecured: 

(a) Royal Malaysian Customs 

(for bank guarantees in relation to clearance on import of goods) 24,256 35,234 

(b) Malaysian Communications and Multimedia Commission 

(for performance guarantee in relation to 3G spectrum assignment) 25,363 39,000 

(c) Supplier 

(for bank guarantees issued to a supplier to secure the Group’s obligations in respect 

of purchases of products and services from the supplier) 30,577 0 

(d) Others 

(for bank guarantees issued to mainly local authorities for the purpose of 

infrastructure works, utility companies and others) 38,711 41,085 

118,907 115,319 

39 SIGNIFICANT SUBSEQUENT EVENTS 

On 16 February 2012, the Company announced that it proposed to establish an unrated Islamic Medium Term Notes Programme 

with an aggregate nominal value of up to RM2.45 billion (“Sukuk Programme”) based on the Islamic principle of Musharakah. 

The Sukuk Programme will have a tenure of 30 years from the date of first issue under the Sukuk Programme. 

The Securities Commission has, vide its letter dated 20 February 2012, given its approval under Section 212(5) of the Capital 

Markets & Services Act 2007 for the Sukuk Programme. 

On 24 February 2012, the Company made its first issuance under the Sukuk Programme of RM2.45 billion nominal value with a 

tenure of 10 years from the date of issue (“First Issuance”). The proceeds from the First Issuance are to be utilised for the purposes 

set out below: 

(i) 

RM1.45 billion for refinancing of existing loans which were fully repaid on the same date; and 

(ii) RM1.00 billion for the capital expenditure and/or working capital and/or general funding requirements and/or general 

corporate purposes. 

40 APPROVAL OF FINANCIAL STATEMENTS 

The financial statements have been approved for issue in accordance with a resolution of the Board of Directors on 10 April 2012.

MAXIS BERHAD 


197 


SUPPLEMENTARY 

INFORMATION 

Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements 

The following analysis of realised and unrealised retained earnings at the legal entity level is prepared in accordance with Guidance on 

Special Matter No.1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia 

Securities Berhad (“Bursa Malaysia”) Listing Requirements, as issued by the Malaysian Institute of Accountants whilst the disclosure at 

the Group level is based on the prescribed format by Bursa Malaysia. 

GROUP 

COMPANY 

2011 2010 2011 2010 

RM’000 RM’000 RM’000 RM’000 

Realised 1,085,156 696,316 28,093 77,606 

Unrealised (465,588) (538,676) 0 0 

Total retained earnings 619,568 157,640 28,093 77,606 

Less: Consolidation adjustments (30,358) 93,298 0 0 

Retained earnings as at 31 December 589,210 250,938 28,093 77,606 

The disclosure of realised and unrealised profits/(losses) above is solely for compliance with the directive issued by Bursa Malaysia and 

should not be used for any other purpose.

198 


STATEMENT BY 

DIRECTORS 

Pursuant to Section 169 (15) of the Companies Act, 1965 

We, Raja Tan Sri Dato’ Seri Arshad bin Raja Tun Uda and Sandip Das, being two of the Directors of Maxis Berhad, do hereby state that, 

in the opinion of the Directors, the accompanying financial statements set out on pages 106 to 196 are drawn up in accordance with 

MASB Approved Accounting Standards in Malaysia for Entities Other than Private Entities and the Companies Act, 1965 in Malaysia so 

as to give a true and fair view of the financial position of the Group and of the Company as at 31 December 2011 and of their financial 

performance and cash flows for the year then ended. 

The supplementary information set out on page 197 have been prepared in accordance with the Guidance on Special Matter No.1, 

Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad 

Listing Requirements, as issued by the Malaysian Institute of Accountants. 

Signed on behalf of the Board of Directors in accordance with their resolution dated 10 April 2012. 

RAJA TAN SRI DATO’ SERI ARSHAD BIN RAJA TUN UDA 

DIRECTOR 

SANDIP DAS 

DIRECTOR 

Kuala Lumpur

MAXIS BERHAD 


199 


STATUTORY 

DECLARATION 

Pursuant to Section 169 (16) of the Companies Act, 1965 

I, Nasution bin Mohamed, the officer primarily responsible for the financial management of Maxis Berhad, do solemnly and sincerely 

declare that the financial statements set out on pages 106 to 196 and supplementary information set out on page 197 are, to the best 

of my knowledge and belief, correct, and I make this solemn declaration conscientiously believing the same to be true, and by virtue 

of the provisions of the Statutory Declarations Act, 1960. 

NASUTION BIN MOHAMED 

Subscribed and solemnly declared by the above-named Nasution bin Mohamed at Kuala Lumpur in Malaysia on 10 April 2012, 

before me. 

COMMISSIONER FOR OATHS

200 


INDEPENDENT AUDITORS’ 

REPORT 

To the Members of Maxis Berhad 

(Incorporated In Malaysia) 

(Company No. 867573 A) 

REPORT ON THE FINANCIAL STATEMENTS 

We have audited the financial statements of Maxis Berhad on pages 106 to 196 which comprise the statements of financial position as 

at 31 December 2011 of the Group and of the Company, and the income statements, statements of comprehensive income, changes 

in equity and cash flows of the Group and of the Company for the year then ended, and a summary of significant accounting policies 

and other explanatory notes, as set out in Notes 1 to 40. 

Directors’ Responsibility for the Financial Statements 

The Directors of the Company are responsible for the preparation of financial statements that give a true and fair view in accordance 

with MASB Approved Accounting Standards in Malaysia for Entities Other than Private Entities and the Companies Act, 1965, and 

for such internal control as the Directors determine are necessary to enable the preparation of financial statements that are free from 

material misstatement, whether due to fraud or error. 

Auditors’ Responsibility 

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance 

with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and 

perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The 

procedures selected depend on our judgment, including the assessment of risks of material misstatement of the financial statements, 

whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation of 

financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but 

not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating 

the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as 

evaluating the overall presentation of the financial statements. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 

Opinion 

In our opinion, the financial statements have been properly drawn up in accordance with MASB Approved Accounting Standards in 

Malaysia for Entities Other than Private Entities and the Companies Act, 1965 so as to give a true and fair view of the financial position 

of the Group and of the Company as of 31 December 2011 and of their financial performance and cash flows for the year then ended.

MAXIS BERHAD 


201 

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS 

In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following: 

(a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company and its 

subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of the Act. 

(b) We have considered the financial statements and the auditor’s report of the subsidiary of which we have not acted as auditors, 

which is indicated in Note 18 to the financial statements. 

(c) We are satisfied that the financial statements of the subsidiaries that have been consolidated with the Company’s financial 

statements are in form and content appropriate and proper for the purposes of the preparation of the financial statements of the 

Group and we have received satisfactory information and explanations required by us for those purposes. 

(d) The audit reports on the financial statements of the subsidiaries did not contain any qualification or any adverse comment made 

under Section 174(3) of the Act. 

OTHER REPORTING RESPONSIBILITIES 

The supplementary information set out on page 197 is disclosed to meet the requirement of Bursa Malaysia Securities Berhad 

and is not part of the financial statements. The Directors are responsible for the preparation of the supplementary information 

in accordance with Guidance on Special Matter No. 1, Determination of Realised and Unrealised Profits or Losses in the Context 

of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, as issued by the Malaysian Institute of Accountants 

(“MIA Guidance”) and the directive of Bursa Malaysia Securities Berhad. In our opinion, the supplementary information is prepared, 

in all material respects, in accordance with the MIA Guidance and the directive of Bursa Malaysia Securities Berhad. 

OTHER MATTERS 

This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act, 1965 in 

Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report. 

PRICEWATERHOUSECOOPERS 

(No. AF: 1146) 

CHARTERED ACCOUNTANTS 

UTHAYA KUMAR S/O K.VIVEKANANDA 

(No. 1455/06/12 (J)) 

CHARTERED ACCOUNTANT 

Kuala Lumpur 

10 April 2012

202 

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MAXIS BERHAD 


203 


LIFE SERVICES 

CLOUD 

DISTRIBUTION

204 


AUDIT 

COMMITTEE 

REPORT 

The Board of Maxis is pleased to present the Audit Committee (the Committee) Report for the financial year ended 


MEMBERS AND MEETINGS 

The Committee members and details of attendance of each member at committee meetings during 2011 are set out below: 

NAME STATUS INDEPENDENT MEETINGS ATTENDED 

Robert William Boyle, Chairman of the Committee Non-Executive Director Yes 6 out of 6 

(Appointed as Chairman on 16.10.09) 

Dato’ Mokhzani bin Mahathir Non-Executive Director Yes 6 out of 6 

(Appointed as Member on 16.10.09) 

Asgari bin Mohd Fuad Stephens Non-Executive Director Yes 6 out of 6 


Dr Fahad Hussain S. Mushayt Non-Executive Director No 5 out of 6 


Chan Chee Beng Non-Executive Director No 6 out of 6 


During the financial year, the Committee conducted six meetings. The Group’s internal and external auditors and certain members 

of Senior Management attended all the meetings. 

The Committee also held four separate private sessions with internal auditors and two with external auditors without the presence 

of Management. 

All members of the Committee are financially literate and are able to analyse and interpret financial statements to effectively 

discharge their duties and responsibilities as members of the Committee. Two of the members (Robert William Boyle and Chan Chee 

Beng) are Fellows of the Institute of Chartered Accountants in England and Wales. 

This meets the Main Market Listing Requirements (MMLR) which stipulate that at least one qualified accountant is a member of the 

Committee. 

Minutes of the meetings of the Committee were circulated to all members of the Board and significant issues were discussed at 

Board meetings. 

Details of the Committee members’ profiles are contained in the “Board of Directors Profiles” section set out on pages 24 to 29 of 

this Annual Report.

MAXIS BERHAD 


205 

SUMMARY OF ACTIVITIES OF THE COMMITTEE 

The Chairman of the Committee reports regularly to the Board on the activities carried out by the Committee in the discharge of 

its duties and responsibilities as set out in the terms of reference. During the financial year, the Committee reviewed its terms of 

reference and there were no changes to it. The major activities undertaken during the year are as follows: 

Financial Results, Financial Statements and Announcements 

• Reviewed with the appropriate officers of the Group, the quarterly financial results and annual audited financial statements of the 

Group, including the announcements pertaining thereto, before recommending to the Board for their approval and the release of 

the Group’s results to Bursa Securities focusing on the matters set out in Section 8 of the Terms of Reference, “Responsibilities and 

Duties of the Committee” under the heading “Financial Reporting” as well as the following areas, where relevant: 

– MMLR of Bursa Securities; 

– Provisions of the Companies Act, 1965 and other legal and regulatory requirements; and 

– MASB approved accounting standards in Malaysia for entities other than private entities. 

Risks and Controls 

• Reviewed the risk profile of the Group prepared by the Enterprise Risk Management department; 

• Reviewed the progress of the risk management function in its on-going identification and monitoring of key risks and the 

controls implemented by the respective departments in managing these risks; and 

• Evaluated the overall adequacy and effectiveness of the system of internal controls through a review of the results of work 

performed by internal and external auditors and discussions with key Senior Management. 

External Audit 

• Reviewed with the external auditors, their terms of engagement, proposed audit remuneration and the audit plan for the 

financial year ended 31 December 2011 to ensure that their scope of work adequately covers the activities of the Group; 

• Reviewed the results and issues arising from the external auditors’ review of the quarterly and audit of the year-end financial 

statements and the resolution of issues highlighted in their report to the Committee; 

• Reviewed the independence, suitability, objectivity and cost effectiveness of the external auditors before recommending to the 

Board their re-appointment and remuneration; and 

• Reviewed compliance of the external auditors with the Maxis external audit independence policy.

206 


AUDIT 

COMMITTEE 

REPORT 

Continued 


• Reviewed with the internal auditors, their audit plan for the financial year ended 31 December 2011 ensuring that principal 

risk areas and key processes (identified by the Enterprise Risk Management department and Internal Audit department) were 

adequately identified and covered in the plan; 

• Reviewed the recommendations by the internal auditors, representations made and corrective actions taken by Management in 

addressing and resolving issues and ensured that all issues were adequately addressed on a timely basis; 

• Reviewed the results of ad-hoc investigations performed by the internal auditors and the actions taken relating to those 

investigations; 

• Reviewed the adequacy of resources and the competencies of staff within the Internal Audit department to execute the plan, as 

well as the audit programmes used in the execution of the internal auditors’ work and the results of their work; 

• Reviewed the performance of Internal Audit department staff; 

• Reviewed the results of the internal assessment performed on the internal audit function; and 

• Reviewed the adequacy of the terms of reference of the internal audit function. 

Related Party Transactions 

• Reviewed related party transactions for compliance with the MMLR of Bursa Securities and the Group’s policies and procedures 

as well as the appropriateness of such transactions before recommending them to the Board for approval; and 

• Reviewed the procedures for securing the shareholders’ mandate for Recurrent Related Party Transactions. 

Employee Share Option Scheme 

• Verified the allocation of share options pursuant to the criteria disclosed to the employees of the Group and established 

pursuant to the Employee Share Option Scheme for the financial year that ended on 31 December 2011. 

Others 

• Reviewed with Management, the quarterly reports on new laws and regulations, material litigation, revenue assurance, business 

continuity and Enterprise Risk Management; 

• Reviewed with Management, the annual report on system and information security; 

• Reviewed the Employee Code of Business Practice, the Whistle-Blowing policy and the outcome of any defalcation cases investigated; 

• Reviewed the Report of the Audit Committee, the Statement on Internal Control and the Statement on Corporate Governance 

prior to their inclusion in the Company’s Annual Report; 

• Reviewed the adequacy of the terms of reference of the Committee; and 

• Conducted a self-assessment to monitor the Committee’s overall effectiveness in meeting its responsibilities and reported the 

results as well as the improvements in procedures to the Board.

MAXIS BERHAD 


207 

TRAINING 

The training attended by the Committee members during the financial year is reported under the Statement on Corporate 

Governance on pages 223 to 227. 

INTERNAL AUDIT FUNCTION 

The Group has an independent internal audit function, the primary responsibility of which is to provide independent and objective 

assessment on the adequacy and effectiveness of the risk management, internal control and governance processes. The internal 

audit function adopts a risk-based audit methodology, which is aligned with the risks of the Group to ensure that the relevant 

controls addressing those risks are reviewed on a timely basis. 

The activities carried out by the Internal Audit department include amongst others, the review of the adequacy and effectiveness of 

risk management and the system of internal controls, compliance with established rules, guidelines, laws and regulations, reliability and 

integrity of information and the means of safeguarding assets. Such reviews are performed with a view to making recommendations 

for improvements to existing controls and processes. On a quarterly basis, the Internal Audit department monitors and reports to the 

Committee, the implementation of recommendations by Management to ensure all key risks are properly addressed. 

The Head of the Internal Audit department is responsible for enhancing the quality assurance and improvement programme of the 

internal audit function. Its effectiveness is monitored through internal self-assessment and independent external assessment, and 

the results are communicated to the Committee. The Head of the Internal Audit department reports directly to the Chairman of the 

Committee. 

The major internal audit activities undertaken during the year are as follows: 

• Reviewed the adequacy and effectiveness of critical processes, IT systems and network elements; 

• Reviewed compliance with established policies and procedures and statutory requirements; 

• Recommended improvements and enhancements to the existing system of internal control, risk management and governance 

processes; 

• Carried out ad-hoc assignments and investigations requested by the Committee and/or Management; 

• Followed-up on the implementation of recommendations by Management to ensure all key risks are addressed; and 

• Developed a risk-based annual audit plan. 

The total costs incurred for the internal audit function for the financial year ended 31 December 2011 amounted to RM4.7 million, 

which included the cost of co-sourcing activities amounting to RM72,410. 

The internal audit function fully abides by the provisions of its Charter. The Charter is reviewed and approved by the Committee 

annually and complies fully with the Institute of Internal Auditors’ International Professional Practices Framework.

208 


AUDIT 

COMMITTEE 

REPORT 

Continued 

TERMS OF REFERENCE OF THE COMMITTEE 

The Committee is governed by the following terms of reference which have been applied by the Group throughout the year: 

1. Function of the Committee 

The Committee is a committee of the Board with the function of assisting the Board in fulfilling its oversight responsibilities. The 

Committee will review the Group’s financial reporting process, the system of internal controls and management of enterprise 

risk, the audit process and the Group’s process for monitoring compliance with laws and regulations and its own code of 

business conduct, as well as such other matters, which may be specifically delegated to the Committee by the Board. 

2. Composition of the Committee 

The Committee shall consist of at least three Board members, a majority of whom shall be independent Directors. All members of 

the Committee must be Non-Executive Directors. Alternate Directors will not be appointed to the Committee. In order to form a 

quorum in respect of a meeting of the Committee, the majority of members present must be independent Directors. 

The Chairman shall be an independent Non-Executive Director elected by the members of the Committee. The Chairman will, 

in consultation with the other members of the Committee, be responsible for calling meetings of the Committee, establishing 

its agenda and supervising the conduct thereof. The Board will review the composition of the Committee, as well as the term of 

office, performance and effectiveness of each member of the Committee annually, to determine whether the Committee and 

its members have carried out their duties in accordance with their terms of reference. 

At least one member of the Committee: 

(i) must be a member of the Malaysian Institute of Accountants (MIA); or 

(ii) if he is not a member of the MIA, he must have at least three years working experience and: 

• he must have passed the examinations specified in Part I of the 1st Schedule of the Accountants Act,1967; or 

• he must be a member of one of the associations of accountants specified in Part II of the 1st Schedule of the 

Accountants Act, 1967; or 

(iii) fulfill such other requirements as prescribed or approved by Bursa Securities. 

In the event of any vacancy in the Committee resulting in non-compliance of Committee composition requirements, the 

Board must fill the vacancy within three months. 

3. Meetings of the Committee 

The Committee shall meet at least four times during each financial year and may regulate its own procedures including 

convening a meeting by means of video or teleconference in place of a meeting in person. In addition to its four meetings 

each financial year, the Committee may take action by way of circular resolutions.

MAXIS BERHAD 


209 

The Committee may request to meet other Board members, any officer or employee of the Group, external legal counsel, 

internal or external auditors and consultants and if necessary, in separate private sessions. The Committee shall meet with the 

external and internal auditors in separate private sessions at least twice in each financial year without executive Board members 

and Senior Management present. The Chairman of the Committee shall provide to the Board a report of the Committee 

meetings. 

4. Consultants 

The Committee may retain, at such times and on such terms as the Committee determines in its sole discretion and at the 

Company’s expense, special legal, accounting, or other consultants to advise and assist it in complying with its responsibilities. 

5. Training 

The Committee shall be provided with appropriate and timely training, both in the form of an induction programme for new 

members and on an ongoing basis for all members. 

6. Secretary of the Committee 

The Company Secretary shall be the Secretary of the Committee. The Secretary shall ensure that the Committee receives 

information and papers in a timely manner to enable full and proper consideration to be given to issues; record, prepare 

and circulate the minutes of the Committee meetings promptly to all members of the Board; and ensure that the minutes 

are properly kept and produced for inspection if required. 

7. Authority of the Committee 

The Committee is authorised by the Board, in accordance with the procedures to be determined by the Board (if any) and at the 

cost of the Company, to: 

• Investigate any matter within its terms of reference; 

• Have adequate resources to perform its duties; 

• Have full and unrestricted access to the Group’s information; 

• Have direct communication channels with external and internal auditors and all employees of the Group; 

• Obtain external independent and professional advice; and 

• Convene meetings with internal and external auditors, if and when deemed necessary. 

8. Responsibilities and Duties of the Committee 

The Committee shall undertake the following responsibilities and duties: 

Risk Management and Internal Control. Review with internal and external auditors, General Counsel and appropriate members 

of the staff, the adequacy of the Group’s processes to identify, monitor and manage key risks and internal controls with respect to 

business practices.

210 


AUDIT 

COMMITTEE 

REPORT 

Continued 

Financial Reporting. Review with or without the presence of appropriate officers of the Group and the external auditors, 

the annual and quarterly financial statements of the Group including the announcements pertaining thereto, prior to Board 

approval, focusing on, inter alia, quality; the accuracy and adequacy of the financial disclosures; changes in accounting policies 

and practices and implementation of such changes; significant and unusual events; going concern assumptions; compliance 

with applicable approved accounting standards; legal and regulatory requirements and other matters as defined by the Board. 

Related Party Transactions. Review any related party transactions, including the monitoring of recurrent related party 

transactions entered into by the Group to ensure they are undertaken on normal commercial terms, that the internal control 

procedures with regard to these transactions are sufficient and have been complied with and that there is compliance with any 

other relevant provisions of the MMLR and Practice Notes of Bursa Securities. 

Employee Share Option Scheme. Verify the allocation of share options to the Group’s eligible employees in accordance to 

the MMLR at the end of each financial year, if any. 

Internal Audit. Review with the Internal Audit department its plans, scope, authority, independence and adequacy of resources 

to carry out its function; the results of the internal audit work and the appropriate actions taken on its recommendations; any 

appraisal or assessment of the performance of the internal auditors; approve the appointment or termination of the Head of 

Internal Audit department; approve the terms of reference of the Internal Audit department; and inform itself of staff resignations 

of the Internal Audit department and provide the resigning staff an opportunity to submit his/her reason for resigning. 

External Audit. Review and report to the Board its recommendation on the proposed appointment, terms of engagement 

and proposed audit remuneration of the external auditor and any questions on resignation or dismissal of the external 

auditor; their audit plan and the nature, approach, scope and cost effectiveness of their annual audit and other 

examinations; the results of the external audit work including adjustments to the financial statements of the Group, if any; 

the accompanying management letters and responses; any factors related to the independence of the external auditors and 

the extent of assistance given by the Group and the Group’s employees. 

Reporting Responsibilities. Report its activities to the Board in such manner and at such times as it deems appropriate 

and report to Bursa Securities where the Committee is of the view that a matter reported by it to the Board has not been 

satisfactorily resolved resulting in a breach of the MMLR. 

Other Responsibilities. Review matters in relation to compliance with legal, regulatory and statutory requirements, conflicts 

of interest and unethical conduct; review arrangements by which staff of the Group may, in confidence, raise concerns 

about possible improprieties in matters of financial reporting, financial control or other business or commercial related 

matters; review with the external auditors and Management the Group’s Statement on Internal Control; examine such other 

matters, as the Committee considers appropriate or as defined by the Board; review and re-assess its terms of reference and 

recommend changes to the Board for approval and conduct a self-assessment to monitor its overall effectiveness in meeting its 

responsibilities once a year and report the results thereof to the Board; and prepare the annual Committee report to the Board.

MAXIS BERHAD 


211 


STATEMENT ON 

CORPORATE 

GOVERNANCE 

The Board of Maxis (the Board) is committed to upholding the highest standards of corporate governance throughout 

the Group as expressed in the Principles of and Best Practices in Corporate Governance set out in the Malaysian Code of 

Corporate Governance (the Code). 

The Code has served as a fundamental guide to the Board in discharging its principal duty to act in the best interests of 

the Company as well as in managing the businesses and affairs of the Group efficiently. Given the Group’s mission to 

be a premier integrated communications service provider, the Board acknowledges the corporate governance tenets of 

transparency, accountability, integrity and corporate performance as the prerequisites of a responsible corporate citizen. 

The Board is pleased to share the manner in which the Principles of the Code have been applied within the Group in 

respect of the financial year ended 31 December 2011 and the extent to which the Company has complied with the Best 

Practices of the Code during the financial year ended 31 December 2011. 

The Board who had approved this Statement on 10 April 2012 believes that the Principles and the Best Practices set out 

in the Code have, in all material respects, been adhered to. 

(I) BOARD OF DIRECTORS 

1. Principal responsibilities of the Board 

The Board adopted the following six specific responsibilities for effective discharge of its functions: 

• Reviewing, adopting and monitoring the implementation of a strategic business plan for the Group; 

• Overseeing the conduct of the Group’s business to evaluate whether the business is being properly managed. This includes 

ensuring that there are measures in place against which Management’s performance can be assessed; 

• Identifying principal risks and ensuring the implementation of appropriate systems to manage these risks; 

• Succession planning, including appointing, training, fixing the compensation of and where appropriate, replacing key 

management; 

• Developing and implementing an investor relations programme or shareholder communications policy for the Group; and 

• Reviewing the adequacy and integrity of the Group’s systems of internal control and of management information, including 

ensuring that sound reporting framework and systems for compliance with applicable laws, regulations, rules, directives 

and guidelines are in place. 

Within the powers accorded by the Company’s Articles of Association (the Articles), the Board is charged with, among others, 

the development of corporate objectives and the review and approval of corporate plans, annual budgets, acquisitions and 

disposals of undertakings and properties of substantial value, major investments and financial decisions and changes to the 

management and control structure within the Group including key risk management, treasury, financial and operational policies 

and delegated authority limits. 

It is also the duty of the Board to ensure that the Group’s strategies promote sustainability, with attention given to environmental, 

social and governance (ESG) aspects of the Group’s business. To this end, the Board approved Maxis’ CR framework which clearly 

outlines Maxis’ CR mission, strategic pillars, philosophies and governance structure in November 2011 for adoption. The CR 

framework provides a clear guiding principle in implementing CR programs that are consistent with the Company’s strategic goals 

and facilitates a structured approach in delivering the Company’s efforts across the profit, people and planet dimensions. Maxis’ 

CR framework was disclosed in Maxis’ inaugural Sustainability Report 2010/2011. The report covers a period of 18 months from 

January 2010 to June 2011 and follows the Global Reporting Initiative (GRI) framework, an internationally recognized standard for 

sustainability reporting. Maxis’ Sustainability Report 2010/2011 is available on our website. 

2. Board Balance and Independence 

There are 10 members of the Board, comprising an Executive Director (who is also the Chief Executive Officer) and nine 

Non-Executive Directors (including the Chairman). Four of the Non-Executive Directors are independent and hence fulfill the 

prescribed requirements for one-third of the membership of the Board to be Independent Board Members.

212 


STATEMENT ON 

CORPORATE 

GOVERNANCE 

Continued 

The Board comprises members of high calibre and integrity with diverse professional backgrounds, skills and extensive 

experience and knowledge in the areas of telecommunications, information and technology, entertainment, finance, business, 

general management and strategy required for the successful direction of the Group. 

With its diversity of skills, the Board has been able to provide clear and effective collective leadership to the Group and has 

brought informed and independent judgment to the Group’s strategy and performance so as to ensure that the highest 

standards of conduct and integrity are always at the core of the Group. None of the Non-Executive Directors participate in the 

day-to-day management of the Group. 

The presence of the Independent Non-Executive Directors is essential in providing unbiased and independent opinion, advice 

and judgment to ensure that the interests, not only of the Group, but also of its shareholders, employees, customers, suppliers 

and other communities in which the Group conducts its business are well represented and taken into account. The Independent 

Non-Executive Directors thus play a key role in corporate accountability. The assessment of the independence of each of its 

Independent Non-Executive Directors is undertaken twice a year according to a set criteria as prescribed by the MMLR. 

As part of the Board’s yearly appraisal and self assessment, the Board is of the view that its size is adequate for the discharge of 

its functions and responsibilities. 

A brief description of the background of each Director is contained in the “Board of Directors Profiles” section as set out on 

pages 24 to 29 of this Annual Report. 

3. Division of roles and responsibilities between the Chairman and the Chief Executive Officer 

The Board appreciates the distinct roles and responsibilities of the Chairman of the Board and the Chief Executive Officer 

(CEO). This division ensures that there is a clear and proper balance of power and authority. As such, the role of the 

Chairman and CEO is separate. In addition to the above, the Chairman was not previously a CEO of the Company. 

The Chairman’s main responsibility is to ensure effective conduct of the Board and that all Directors, Executive and Non- 

Executive, have unrestricted and timely access to all relevant information necessary for informed decision-making. The 

Chairman encourages participation and deliberation by Board members to tap the wisdom of all the Board members and to 

promote consensus building as much as possible. 

The CEO has overall responsibilities over the Group’s operational and business units, organisational effectiveness and 

implementation of Board policies, directives, strategies and decisions. In addition, the CEO also functions as the intermediary 

between the Board and management. 

Matters which are reserved for the Board’s approval and delegation of powers to the Board Committees, the CEO and 

Management are expressly set out in an approved framework on limits of authority. Business affairs of the Group are 

governed by the Group’s Manual on Limits of Authority. Any non-compliance issues are brought to the attention of 

management, Audit Committee and/or the Board, for effective supervisory decision-making and proper governance. 

As the Group is expanding and its business growing, the division of authority is constantly reviewed to maintain the best 

levels of management efficiency and performance. 

4. Board meetings and supply of information 

The Board intends to meet at least four times a year, with additional meetings convened as and when the Board’s approval 

and guidance is required. Upon consultation with the Chairman and the CEO, due notice shall be given of proposed dates 

of meetings during the financial year and standard agenda and matters to be tabled to the Board. Additional meetings are 

convened on an ad-hoc basis.

MAXIS BERHAD 


213 


Seven Board meetings were held during the financial year ended 31 December 2011 and details of the attendance of each 

Director are as follows: 

NUMBER OF MEETINGS 

DIRECTOR DESIGNATION ATTENDED DURING THE YEAR PERCENTAGE 

Raja Tan Sri Dato’ Seri Arshad Chairman, Independent 6 out of 7 85.7% 



Robert William Boyle Independent Non-Executive Director 7 out of 7 100% 

Dato’ Mokhzani bin Mahathir Independent Non-Executive Director 7 out of 7 100% 

Asgari bin Mohd Fuad Stephens Independent Non-Executive Director 7 out of 7 100% 

Eng Saud Majed A. AlDaweesh Non-Executive Director * - 

(resigned on 10 February 2011) 

Dr Zeyad Thamer H. AlEtaibi Non-Executive Director 7 out of 7 100% 

Dr Fahad Hussain S. Mushayt Non-Executive Director 6 out of 7 85.7% 

Ghassan Hasbani Non-Executive Director 6 out of 7 85.7% 

Augustus Ralph Marshall Non-Executive Director 7 out of 7 100% 

Chan Chee Beng Non-Executive Director 7 out of 7 100% 

Sandip Das Executive Director/ 7 out of 7 100% 


* Eng Saud did not attend any meeting during the financial year ended 31 December 2011 as he resigned prior to the first 

Board meeting held in 2011. 

The Board has unrestricted and immediate access to Senior Management and all information on the affairs of the Group. 

At the request of the Board, the Management is obliged to supply all relevant information relating to the business and 

operations of the Group and governance matters, including customer satisfaction and survey quality, market share and market 

reaction in a timely manner for the Board to discharge its duties effectively. A set of Board papers (together with a detailed 

agenda in the case of a meeting) is furnished to the Board members in advance of each Board meeting or Directors’ Circular 

Resolution for consideration, guidance and where required, for decision. The Board papers include, among others, the following 

documents or information: 

• Reports of meetings of all committees of the Board including matters requiring the full Board’s deliberation and approval; 

• Performance reports of the Group, which include information on financial, industry and strategic business issues and updates; 

• Major operational, financial, technical, legal and regulatory issues; 

• Technological developments and updates; 

• Reports on risk management; 

• Reports on human capital, organisational and talent management; and 

• Board papers on other matters of discussion/approval. 

Additionally, the Board is furnished with ad-hoc reports to ensure that it is apprised of key business, financial, operational, 

corporate, legal, regulatory and industry matters, as and when the need arises. 

The Senior Management are also invited to join in Board meetings to provide explanation or engage in dialogue with Board 

members as they may require. 

All deliberations, discussions and decisions of the Board are minuted and recorded accordingly. 

The Directors also have direct access to the advice and services of the General Counsel, Head of Internal Audit and Company 

Secretary in addition to other members of Senior Management. Each of the individual Directors is constantly advised and 

updated on statutory and regulatory requirements pertaining to their duties and responsibilities. Members of the Board may 

collectively or individually seek external and independent professional advice and assistance from experts in furtherance of their 

duties at the Group’s expense.

214 


STATEMENT ON 

CORPORATE 

GOVERNANCE 

Continued 

All matters and/or transactions that fall within the ambit of the Board pursuant to the Companies Act 1965, MMLR, the 

Company’s Articles of Association, the Terms of Reference of the respective Board Committees, the Group’s Manual of Limits of 

Authority (such as transactions with value in excess of RM30 million, Long Range Plan and Annual Operating Plan) or any other 

applicable rule are tabled to the Board for discussion and approval prior to the making of a commitment or implementation. 

5. Appointments to the Board 

The Nomination Committee makes independent recommendations for appointments to the Board, and the Nomination 

Committee may consider the use of external consultants in the identification of Directors. In making these recommendations, 

the Nomination Committee assesses the suitability of candidates, taking into account the required mix of skills, knowledge, 

expertise and experience, professionalism, integrity, competencies and other qualities, before recommending their appointment 

to the Board for approval. 

The Board makes clear at the outset its expectations of its new Directors in terms of their time commitment. 

6. Re-election of Directors 

In accordance with the Company’s Articles, all Directors who are appointed by the Board may only hold office until the next 

following Annual General Meeting (AGM) subsequent to their appointment and shall then be eligible for re-election but shall not 

be taken into account in determining the Directors who are to retire by rotation at that AGM. The Articles also provide that onethird 

of the Directors are subject to retirement by rotation at every AGM but are eligible for re-election provided always that all 

Directors including the Managing Director and Executive Directors shall retire from office at least once in every three years. 

Pursuant to Section 129(2) of the Companies Act, 1965, the office of a director of or over the age of 70 years becomes vacant at 

every AGM unless he is reappointed by a resolution passed at such an AGM of which no shorter notice than that required for the 

AGM has been given and the majority by which such resolution is passed is not less than three-fourths of all members present 

and voting at such AGM. 

Directors who are due for retirement by rotation and eligible for re-election pursuant to Article 114 of the Company’s Articles at 

the forthcoming AGM are Ghassan Hasbani, Dr Fahad Hussain S. Mushayt and Sandip Das. The profiles of the Directors who are 

due for re-election are set out on pages 26, 27 and 29 of this Annual Report. 

The Board has considered the assessment of the three Directors standing for re-election and collectively agree that they meet 

the criteria of character, experience, integrity, competence and time to effectively discharge their respective roles as Directors as 

prescribed by the MMLR. 

7. Training and Development of Directors 

The Board will continue to evaluate and determine the training needs of its Directors on an ongoing basis, by determining areas 

that would best strengthen their contributions to the Board. 

Orientation and familiarisation programmes which include visits to the Group’s business operations and meetings with key 

management, where appropriate, are organised for newly appointed Directors to facilitate their understanding of the Group’s 

operations and businesses. Regular talks are scheduled on various topics for the Board and these sessions are held together 

with Senior Management in order to encourage open discussion and comments. 

Throughout the financial year under review, regular briefings/updates (some by external advisers) on various subjects including the 

following were held at Board and Pre-Board meetings. These form an integral part of the Directors’ development programme: 

• Market, economics and industry; 

• Regulatory and legal developments; 

• Technology; 

• Telecommunications trends; 

• Information on significant changes in business risks and procedures instituted to mitigate such risks; 

• Corporate matters or new acquisitions by the Group; 

• New developments in law, regulations and directors’ duties and obligations; 

• Customer related issues; 

• Talent Development; and 

• Corporate Responsibility.

MAXIS BERHAD 


215 

The Directors have also participated in various internally organised programmes to enhance their understanding of specific 

industry or market issue and trends. Regular dinner talks such as talent and corporate responsibility and stakeholder dialogues 

have been part of the Maxis board agenda and this will continue into 2012 and beyond with greater intensity. Members of 

the Senior Management team have been invited to these sessions to foster positive board-management dynamics. Where 

necessary, the Directors have also participated in various external training programmes which they have collectively or 

individually considered as useful in discharging their responsibilities. 

The Company Secretary facilitates the organisation of internal training programmes and keeps Directors informed of relevant 

external training programmes. Details of all internal and external training programmes attended by Directors are maintained by 

the Company Secretary. Some external conferences/workshops and internally organised programmes (apart from Board and pre- 

Board briefings) in which members of the Board have participated during the year 2011 are listed in Annexure A of this Statement. 

All Directors have attended and completed the Mandatory Accreditation Programme prescribed by Bursa Securities. Dr Zeyad 

Thamer H. AlEtaibi, who was appointed as a Director on 10 February 2011 completed his Mandatory Accreditation Programme 

on 26 May 2011, which is within the prescribed period of four months from the date of his appointment. 

8. Board Effectiveness Assessment 

The Nomination Committee facilitates and organises the yearly Board Effectiveness Assessment for assessment and evaluation 

of the Board of Directors and Board Committees. The objective is to improve the Board’s effectiveness, identify gaps, maximise 

strengths and address weaknesses of the Board. The Chairman of the Board oversees the overall evaluation process and responses 

are analysed by the Nomination Committee, before being constructively tabled and communicated to the Board. Self-assessment 

and peer-assessment methodologies are used and issues for assessment are presented in a customised questionnaire. During the 

year, the Board of Directors and Board Committees were assessed and the results were shared with the Board. In addition, the 

individual Directors conducted self-assessments, the results of which were also shared with the Board. 

The criteria on which the Board’s effectiveness is evaluated include inter alia Board’s and Board Committees’ composition, Board’s 

roles and responsibilities, performance which comprises strategy planning and performance, risk and human capital management, 

Board communications and conduct of the Board and Board Committees. 

The Board Committees were inter alia assessed based on their roles and scope, frequency and length of meetings, supply of 

sufficient and timely information and also overall effectiveness and efficiency of the Board Committees. 

The individual Directors each undertook self-assessment on the criteria for character, experience, integrity, competence and time in 

order to discharge their respective roles as Directors of Maxis Berhad. 

9. Company Secretary 

The Company Secretary facilitates overall compliance with the MMLR and Companies Act, 1965 and other relevant laws 

and regulations. In performing this duty, the Company Secretary carries out, among others, the following tasks: 

• Attending Board meetings and ensuring that the Board meetings are properly convened and proceedings are properly recorded; 

• Ensuring timely communication of Board level decisions to Senior Management; 

• Ensuring that all appointments to the Board and Committees are properly made; 

• Maintaining records for the purposes of meeting statutory obligations; 

• Ensuring that obligations arising from the MMLR or other regulatory requirements are met; 

• Facilitating the provision of information as may be requested by the Directors from time to time; and 

• Supporting the Board in ensuring adherence to Board policies and procedures. 

The Board may remove the Company Secretary. 

10. Board Committees 

The Board delegates certain responsibilities to the respective Committees of the Board which operate within clearly defined 

terms of reference and limits on authority. These Committees have the authority to examine particular issues and report their 

proceedings and deliberations to the Board. On Board reserved matters, Committees shall deliberate and thereafter state 

their recommendations to the Board for its approval. 

During Board meetings, the Chairmen of the various Committees provide summary reports of the decisions and 

recommendations made at respective committee meetings, and highlight to the Board any further deliberation that is 

required at Board level. These Committee reports and deliberations are incorporated into the minutes of the Board meetings.

216 


STATEMENT ON 

CORPORATE 

GOVERNANCE 

Continued 

The Company has four principal Board Committees: 

(a) Audit Committee 

The composition, terms of reference and a summary of the activities of the Audit Committee are set out separately in the 

Audit Committee Report as laid out on pages 204 to 210 of this Annual Report. 

(b) Nomination Committee 

The Nomination Committee of the Board consists of the following Non-Executive Directors, the majority of whom are 

independent: 

• Raja Tan Sri Dato’ Seri Arshad bin Raja Tun Uda (Independent Non-Executive Director and Chairman of the Nomination 

Committee); 

• Robert William Boyle (Independent Non-Executive Director); 

• Dato’ Mokhzani bin Mahathir (Independent Non-Executive Director); 

• Ghassan Hasbani (Non-Executive Director); and 

• Chan Chee Beng (Non-Executive Director). 

The Nomination Committee has been entrusted with the following duties and/or responsibilities: 

(a) formulating the nomination, selection and succession policies for the members of the Board and Board Committees; 

(b) making recommendations on the optimum size of the Board taking into consideration the desired skills and 

competencies required, and the candidates for directorships to be filled by the shareholders or the Board as well as 

formalising a transparent procedure for proposing new nominees to the Board and Board Committees; 

(c) reviewing the candidates’ mix of skills, knowledge, expertise, experience, professionalism, integrity and, in the case 

of candidates for the position of Independent Non-Executive Directors, the candidates’ ability to discharge such 

responsibilities/functions as are expected; 

(d) in making its recommendations, to consider candidates for directorships proposed by the Chief Executive Officer and, 

within the bounds of practicability, by any other senior executive or any Director or shareholder; 

(e) recommending to the Board appointments to fill casual vacancies; 

(f) assisting the Board in reviewing on an annual basis the required mix of skills and experience and other qualities 

including core competencies which Non-Executive Directors should bring to the Board; 

(g) assessing the effectiveness of the Board as a whole and the contribution of each individual Director and Board 

Committee member; 

(h) assisting the Board in nominating the membership of other Board Committee members; 

(i) assisting the Board to develop a criteria, formulate and implement an evaluation procedure to be carried out by the 

Committee annually for assessing the effectiveness of the Board, Board Committees and individual Directors; 

(j) determining the core competencies and skills required of Board members to best serve the business and operations of 

the Group as a whole; 

(k) reviewing the participation of the Non-Executive Directors, Board balance and to determine if additional Board 

(l) 

members are required and ensure that at least one-third of the Board is independent; 

documenting all assessments and evaluations carried out by the Committee in the discharge of all its functions and 

thereafter, reporting to the Board; 

(m) ensuring, where the Company has a significant shareholder, that the investment of the minority shareholders are fairly 

reflected through Board representation. 

In discharging its duties, the Committee is at all times mindful of the provisions of the Malaysian Code on Corporate 

Governance and all applicable laws, regulations and guidelines. 

In general, the Committee shall not have delegated powers from the Board to implement its recommendations but should 

be obliged to report its recommendations back to the full Board for consideration and implementation. 

In carrying out its duties and responsibilities, the Committee has: 

(i) full, free and unrestricted access to any information, records, properties and personnel of the Maxis Group; and 

(ii) the power to obtain independent professional advice and expertise necessary for the performance of its duties.

MAXIS BERHAD 


217 

All members of the Committee has access to the advice and services of the Company Secretary. 

The Nomination Committee meets as and when necessary and can also make decisions by way of circular resolutions. 

The Nomination Committee held three meetings during the financial year ended 31 December 2011. All members 

attended the meetings. 

The activities undertaken by the Nomination Committee during the financial year ended 31 December 2011 were as 

follows: 

(i) Reviewed the overall composition of the Board Committees and terms of reference of the Remuneration Committee 

(ii) Discussed and reviewed the results of the Assessment of the Effectiveness of the Board and the Board Committee for 

the financial year ended 31 December 2010 

(iii) Reviewed the methodology of the Assessment of the Effectiveness of the Board and Board Committee including 

individual directors for the financial year ended 31 December 2011 

During the year, the Company did not engage any external party in respect of the annual review of the Board and/or 

individual Director or Board Committee. 

(c) Remuneration Committee 

The Remuneration Committee of the Board consists of the following Non-Executive Directors, the majority of whom are 

independent: 

• Dato’ Mokhzani bin Mahathir (Independent Non-Executive Director and Chairman of the Remuneration Committee); 

• Robert William Boyle (Independent Non-Executive Director); 

• Asgari bin Mohd Fuad Stephens (Independent Non-Executive Director); 

• Ghassan Hasbani (Non-Executive Director) (appointed with effect from 10 February 2011); 

• Eng Saud Majed A. AlDaweesh (Non-Executive Director) (resigned with effect from 10 February 2011); and 

• Augustus Ralph Marshall (Non-Executive Director). 

The Remuneration Committee has been entrusted with the following duties and/or responsibilities: 

(a) recommending to the Board the policy and framework for Directors’ remuneration as well as the remuneration and terms 

of service of Executive Directors and to ensure that the procedure for the establishment of the policy and framework is 

transparent; 

(b) evaluating and reviewing the performance, KPIs and reward for Executive Directors, CEO, Joint Chief Operating Officer(s) and 

Chief Financial Officer of the Company (the Joint Chief Operating Officer(s) and Chief Financial Officer, collectively referred 

as CXO) on a yearly basis and ensuring that the remuneration packages (including but not limited to bonuses, incentive 

payments, share options and other share awards) for Executive Directors, CEO and the CXO are competitive, performancebased 

and reflective of their contributions to the Company’s growth and profitability, in line with corporate objectives and 

strategy; 

(c) designing and implementing an evaluation procedure for Executive Directors and CEO of the Company; 

(d) ensuring performance targets are designed and established to achieve consistency with the interests of shareholders of the 

Company, with an appropriate balance between long and short term goals; 

(e) reviewing on a yearly basis the individual remuneration packages of the Executive Directors, and to make the appropriate 

recommendations to the Board; 

(f) making recommendations to the Board with respect to awards under incentive-compensation plans, employee share option 

schemes and other equity-based plans of the Company that apply to Directors, CEO and CXO; 

(g) reviewing the effectiveness of the Company’s performance measurement and reward process; 

(h) reviewing the design of all share incentive plans for approval by the Board and shareholders. For any such plans, to determine 

on a yearly basis whether awards will be made and if so, the overall amount of such awards, the individual awards to 

Executive Directors, CEO and CXO, and the performance targets to be used;

218 


STATEMENT ON 

CORPORATE 

GOVERNANCE 

Continued 

(i) determining the policy for, and scope of, pension arrangements for each Executive Director, CEO and CXO; 

(j) overseeing the overall bonus structure of the Company and setting broad targets; 

(k) reviewing the overall organisational design and structure of the Company. 

In general, the Committee shall not have delegated powers from the Board to implement its recommendations but shall be 

obliged to report its recommendations to the full Board for consideration and implementation. 

In carrying out its duties and responsibilities, the Committee has: 

(i) full, free and unrestricted access to any information, records, properties and personnel of the Maxis Group; 

(ii) the power to obtain independent professional advice and expertise necessary for the performance of its duties. 

All members of the Committee have access to the advice and services of the Company Secretary. 

The Remuneration Committee meets as and when necessary and can also make decisions by way of circular resolutions. 

During the financial year ended 31 December 2011 the Remuneration Committee met twice in 2011 and all members of 

the Committee attended the Meetings. 

During the year, the Remuneration Committee reviewed its Terms of Reference, affirmed the schedule of fees payable to 

Non-Executive Directors and also reviewed the KPIs and bonus recommendation and remuneration of the CEO. 

(d) Employee Share Option Scheme (ESOS) Committee 

The ESOS Committee was established on 20 April 2011 with delegated authority to administer the ESOS and to decide 

on all relevant matters incidental thereto in accordance with the ESOS Bye-Laws including, but not limited to, the power 

to determine the criteria for eligible employees, the entitlement for eligible employees and the granting of option to such 

eligible employee. 

Allocations to Directors shall also be reviewed and recommended by the Remuneration Committee and then approved by 

the Board as a whole with the relevant individual Director abstaining in respect of his individual allocation and subject to 

the approval of the shareholders of the Company at a general meeting. 

The ESOS Committee consists of the following Directors: 

• Dato’ Mokhzani bin Mahathir (Independent Non-Executive Director and Chairman of the ESOS Committee) 

• Asgari bin Mohd Fuad Stephens (Independent Non-Executive Director) 

• Sandip Das (Executive Director) 

In undertaking its responsibilities, the ESOS Committee will give due reference to; 

(i) the overall financial performance of the Company relative to the business plan agreed by the Board; 

(ii) the competitiveness of the total compensation package for each grade of employee; 

(iii) the individual contribution and strategic importance of current and potential key senior employees; 

(iv) changes in the regulatory framework governing share options grants to employees; and 

(v) the ESOS Bye-Laws of the Company as approved by the shareholders. 

The ESOS Committee meets as and when necessary and can also make decisions by way of circular resolutions. The 

Committee met twice during the financial year ended 31 December 2011 and all the members attended the meetings. In 

addition, the Committee also met a number of times informally during the financial year ended 31 December 2011. The 

Committee reviewed and discussed the terms and criteria for the ESOS allocation for eligible employees.

MAXIS BERHAD 


219 

(II) REMUNERATION OF DIRECTORS AND SENIOR MANAGEMENT 

The objectives of the Group’s policy on Directors’ remuneration are to attract and retain Directors of the calibre needed to run the 

Group successfully. In Maxis, the component parts of remuneration for the Executive Directors are structured so as to link rewards 

to corporate and individual performance. In the case of Non-Executive Directors, the level of remuneration reflects the experience, 

expertise and level of responsibilities undertaken by the particular Non-Executive Director concerned. 

During the year under review, the Company hired Hay Group to review the remuneration packages of the CEO and CXO. 

1. Remuneration procedures 

The Remuneration Committee recommends to the Board, the policy and framework of the Directors’ remuneration and the 

remuneration package for the Executive Directors. In recommending the Group’s remuneration policy, the Remuneration 

Committee may receive advice from external consultants. It is nevertheless the ultimate responsibility of the Board to approve 

the remuneration of these Directors. 

The Remuneration Committee also reviews the KPIs and bonus recommendation of the CEO and CXO. In determining the 

bonus, the Remuneration Committee reviews the performance based on their scorecards which specifies the achievements 

and results of KPIs for Corporate Goal (financial and business KPIs), Individual Prorities (operational KPIs) and Employee 

Development. 

Unless otherwise determined by an ordinary resolution of the Company in a general meeting, the total fees of all Directors in 

any year shall be a fixed sum not exceeding in aggregate RM6,000,000.00 and divisible among the Directors as they may agree, 

or failing agreement, equally. 

The determination of the remuneration packages of Non-Executive Directors (whether in addition to or in lieu of their fees 

as Directors), is a matter for the Board as a whole. Individual Directors do not participate in decisions regarding their own 

remuneration package. 

2. Directors’ Remuneration Package 

The remuneration package of the Directors is as follows: 

(a) Basic salary 

The basic salary of the Executive Director is fixed for the duration of his contract. Any revision to the basic salary will be reviewed 

and recommended by the Remuneration Committee, taking into account the individual performance, the inflation price index, 

and information from independent sources on the rates of salary for similar positions in other comparable companies. 

(b) Fees 

In accordance with the Company’s Articles, the total fees of all the Directors in any year shall be a fixed sum not exceeding 

in aggregate RM6,000,000.00 unless otherwise determined by an ordinary resolution of the Company in general meeting. 

(c) Bonus scheme 

The Group operates a bonus scheme for all employees, including the Executive Directors. The criteria for the scheme is 

dependent on the level of profits achieved from certain aspects of the Group’s business activities as measured against 

targets, together with an assessment of each individual’s performance during the period. Bonuses payable to the Executive 

Directors are reviewed by the Remuneration Committee and approved by the Board. 

(d) Benefits-in-kind 

Other customary benefits (such as private medical cover, car, etc) are made available to Directors as appropriate. 

(e) Service contract 

The notice period for the termination of an Executive Director’s service contract is six months on either side. 

The aggregate emoluments received by the Directors of the Company during the financial year ended 31 December 2011 and 

the total Directors’ remuneration analysed in the band of RM50,000 are disclosed in the financial statements, as set out on 

pages 143 to 144 of this Annual Report.

220 


STATEMENT ON 

CORPORATE 

GOVERNANCE 

Continued 

Details of the remuneration for each of the Non-Executive Directors of the Company, categorised into appropriate components 

for the financial year ended 31 December 2011 are as follows: 

BENEFIT IN TOTAL 

NAME OF DIRECTORS FEE KIND AMOUNT 

(RM) (RM) (RM) 

Raja Tan Sri Dato’ Seri Arshad bin 

Raja Tun Uda 450,000 37,651 487,651 

Robert William Boyle 370,000 - 370,000 

Dato’ Mokhzani bin Mahathir 330,000 - 330,000 

Asgari bin Mohd Fuad Stephens 280,000 - 280,000 

Eng Saud Majed A. AlDaweesh 28,631 - 28,631 

Ghassan Hasbani 268,899 - 268,899 

Dr Zeyad Thamer H. AlEtaibi 222,470 - 222,470 

Dr Fahad Hussain S. Mushayt 270,000 - 270,000 

Augustus Ralph Marshall 260,000 - 260,000 

Chan Chee Beng 280,000 - 280,000 

Sandip Das (Executive Director) (Note 1) - - - 

Note: 

(1) The Executive Director’s remuneration can be found on page 143 of this annual report. 

(2) Save as disclosed above, no other fees have been paid to the Directors by the Company and/or its subsidiaries. 

(III) SHAREHOLDERS AND OTHER STAKEHOLDERS 

1. Shareholders and Investor Relations 

The Board believes that the Group should be transparent and accountable to its shareholders and investors. 

Other than through the issuance of its Annual Reports, Maxis has been actively communicating with its shareholders and 

stakeholders through the following channels: 

• Release of financial results on a quarterly basis; 

• Press releases and announcements to Bursa Securities and subsequently to the media; 

• An online Investor Relations section and online Press Room, the “Maxis Media Centre”, which can be accessed by 

shareholders and the general public via the Company’s website www.maxis.com.my 

The Group’s website is updated from time to time to provide current and comprehensive information about the Group. 

Please also refer to the Investor Relations section on pages 8 to 11 of this Annual Report. 

The Board has identified Dato’ Mokhzani bin Mahathir as the Senior Independent Director to whom queries or concerns 

regarding the Group may be conveyed. 

(i) 

Dato’ Mokhzani bin Mahathir can be contacted as follows: 

Telephone number: +603 2330 7000 Facsimile number: +603 2330 0590 

Email address: mmokhza@maxis.com.my 

Queries or concerns regarding the Group may be also conveyed to the following persons: 

(ii) Nasution Mohamed 

Chief Financial Officer, for financial related matters 


(iii) Roselina Khong 

Investor Relations, for investor relations matters 


Email: ir@maxis.com.my 

(iv) Dipak Kaur 

Company Secretary, for shareholders’ enquiries 

Telephone number: +603 2330 7000 Facsimile number: +603 2330 0590

MAXIS BERHAD 


221 

2. Annual General Meeting (AGM) 

The AGM is the principal forum for dialogue with all shareholders who are encouraged and are given sufficient 

opportunity to enquire about the Group’s activities and prospects as well as to communicate their expectations and 

concerns. Shareholders are encouraged to participate in the Question and Answer session on the resolutions being 

proposed or about the Group’s operations in general. Shareholders who are unable to attend are allowed to appoint 

proxies in accordance with the Company’s Articles to attend and vote on their behalf. The Chairman and the Board 

members are in attendance to provide clarification on shareholders’ queries. Where appropriate, the Chairman of 

the Board will endeavour to provide the shareholders with written answers to any significant questions that cannot 

be readily answered during the AGM. Shareholders are welcome to raise queries by contacting Maxis at any time 

throughout the year and not only at the AGM. 

Each notice of a general meeting, which includes any item of special business, will be accompanied by a statement 

regarding the effect of any proposed resolution in respect of such special business. Separate resolutions are proposed 

for substantially separate issues at the AGM. 

A toll-free line has been set up to attend to all queries from shareholders pertaining to the Form of Proxy and all other 

matters relating to this forthcoming AGM. An email account has also been created for the shareholders to post their 

queries relating to the AGM. The toll-free number 1800 828 001 and email address agm2012@maxis.com.my will be 

valid from 2 May 2012 to 8 June 2012. 

3. Whistle-Blowing 

In light of the requirements stipulated in the Capital Markets and Services Act 2007, the Bursa Securities Corporate 

Governance Guide and the Companies Act 1965, the Board recognises importance of whistle-blowing and is 

committed to maintaining the highest standards of ethical conduct within the Group. 

A secure reporting mechanism for employees and third parties has been established called the ‘Ethics Hotline’ to 

report any alleged unethical behavior, actual or suspected fraud within the Group. Dedicated channels for reporting 

are set up. These channels, under the custodian of Internal Audit Department, are: 

• Call or SMS to ethics hotline numbers (03-23306678 or 017-2003922); 

• Email to ethics@maxis.com.my; 

• Send letters/documents to the Ethics Hotline Office (Level 21, Menara Maxis, Kuala Lumpur City Centre, 50088, 

Kuala Lumpur, Malaysia). 

The Board and the Management give their assurance that employees’ and third parties’ identities are kept confidential 

and will not be at risk to any form of victimisation or retaliation from their superiors or any member of the Management 

provided they act in good faith in their reporting. All concerns raised will be investigated by a team comprising Internal 

Audit, Human Resource personnel and/or line management. All fraud and unethical cases will be deliberated at the 

Defalcation Committee (an internal committee comprising Management as members) which meets regularly on matters 

pertaining to fraud and unethical practices. A report and updates on the fraud and unethical cases are provided to the 

Audit Committee on a quarterly basis. 

(IV) CODE OF BUSINESS PRACTICE 

The Group’s Code of Business Practice Declaration (the Code) applies to all Directors and employees of the Group who are 

required to affirm on a yearly basis their commitment to observe the Code. The Code serves as documentation of the Directors’ 

and employees’ commitment to do business in a manner that is efficient, effective and fair and is meant as a reference for all 

Directors and all levels of employees as well as all parties that are engaged in business dealings with the Group. 

The Code is a guide to assist the Group’s employees in living up to the Group’s high ethical business standards, and 

provides guidance on the way employees should conduct themselves when dealing with other parties doing business with 

the Group.

222 


STATEMENT ON 

CORPORATE 

GOVERNANCE 

Continued 

The Code also provides guidelines for the manner in which all employees should conduct themselves at the work-place, 

while performing their daily duties for Maxis and as Maxis employees. Please also refer to section on the Ethical Business 

Pratices on pages 239 to 240 of this Annual Report. 

(V) ACCOUNTABILITY AND AUDIT 

1. Financial reporting 

In presenting the annual financial statements and quarterly announcement of results to shareholders, the Directors 

will endeavour to present a clear, balanced and understandable assessment of the Group’s financial position, 

performance and prospects. This also applies to other price-sensitive public reports and reports to regulators. The 

assessment is provided in this Annual Report through the Directors’ Responsibility Statement as set out on page 235 

of this Annual Report. 

2. Related Party Transactions 

The Company has put in place review and approval processes and procedures for related party transactions (RPTs) to ensure 

that the transaction prices, terms and conditions of the agreement and the quality of the products/services are comparable 

with those prevailing in the market. The quality of the products/services must meet industry standards. The transaction 

should be entered into on normal commercial terms, and on terms that are consistent with the Group’s usual business 

practices and policies. This will ultimately ensure that the terms of the transactions are not favourable to the related party 

and are not detrimental to the minority shareholders of the Company. 

The RPT review and approval processes and procedures focus on three areas: 

(i) Create RPT Awareness – All Heads of business units, Finance, Legal and Internal Audit teams are made aware of all 

related parties to enable the Company to capture information on RPTs at source. Formal and informal briefings on the 

RPT requirements and relevant compliance requirements are conducted regularly for all business units. 

(ii) RPT approval process 

All RPTs (irrespective of their values) must be tabled to the Audit Committee (AC) for review and Board for approval. 

Any new RPT proposed for the AC’s recommendation and the Board’s approval will be reviewed by various internal 

parties including the Company Secretary, Finance and Internal Audit Department, all of which are tasked with 

monitoring and reviewing transactions before the Board paper is submitted to the AC and Board. 

Where transactions are on single source quotation and where benchmarking is not possible, justification by business 

units must be provided to ensure that the transactions are at arm’s length basis, not favourable to the related party 

and not detrimental to the minority shareholders. 

The non-interested Directors of the Board will consider the transaction as proposed in the Board paper and if it thinks 

appropriate, approve the RPT upon recommendation by the AC. 

In respect of the recurrent related party transactions (RRPTs) which are within the shareholders’ mandate (Mandate) 

obtained at the Company’s Extraordinary General Meeting, additional review and approval procedures are adopted. 

Any individual RRPTs exceeding RM30 million each in value will be reviewed and considered by the AC prior to 

recommendation to the Board for approval, before the transaction can be entered into.

MAXIS BERHAD 


223 

(iii) Monitoring Compliance and Reporting 

The Company has a process for monthly reporting on the status of mandated RRPTs whereby the mandated RRPTs 

amount will be tracked on a monthly basis to ensure that the actual value of the mandated RRPTs entered into with 

parties within the same related party group does not exceed the aggregated estimated value of such mandated RRPTs. 

Disclosure on the RRPTs for which Shareholders’ mandate has been obtained together with the breakdown of the 

aggregate value of the RRPTs which had been conducted during the financial year ended 31 December 2011 is provided on 

pages 250 to 278 of this Annual Report. 

3. Internal Control 

The Group’s Statement on Internal Control is set out on pages 230 to 234 of this Annual Report. 

4. Relationship With Auditors 

The role of the Audit Committee in relation to both the internal and external auditors is described in the Audit Committee 

Report as set out on pages 204 to 210 of this Annual Report. 

ANNEXURE A 

COURSES/PROGRAMMES ATTENDED BY THE DIRECTORS FOR THE PERIOD FROM 1 JANUARY 2011 TO 

31 DECEMBER 2011 

NAME OF DIRECTOR COURSE/PROGRAMMES DATE 

Raja Tan Sri Dato’ Seri The Mandate of Talent Corporation Malaysia Berhad and partnership 21 February 2011 

Arshad bin Raja Tun Uda with Maxis 

Uplifting Maxis’ Corporate Responsibility (CR) Practices – CR Framework 26 September 2011 

and Strategy, covering an overview of Corporate Responsibility, Maxis’ 

CR Framework and Strategy, and BOD’s role in enabling CR within Maxis 

Booz and Co’s insights on the telco industry and the developments 30 November 2011 

and trends that are shaping the sector 

Robert William Boyle The Mandate of Talent Corporation Malaysia Berhad and partnership 21 February 2011 

with Maxis 

Deloitte Technical Update Seminar for Non-Ececutive Directors (NEDs) February 2011 

PwC Public Sector NEDs Briefing March 2011 

NHS Audit Committee Chairmen’s briefing April 2011 

Association of Investment Companies Conference April 2011 

Offshore Investment Company Forum May 2011 

Foundation Trust Network Update Seminar June 2011 

PwC Corporate Governance Workshop June 2011 

PwC Corporate Reporting Workshop June 2011

224 


STATEMENT ON 

CORPORATE 

GOVERNANCE 

Continued 


Deloitte NED Briefing July 2011 

Uplifting Maxis’ Corporate Responsibility (CR) Practices – CR 26 September 2011 

Framework and Strategy, covering an overview of Corporate 

Responsibility, Maxis’ CR Framework and Strategy, and BOD’s role in 

enabling CR within Maxis 

Deloitte Financial Products Retail Distribution Review Seminar November 2011 

Financial Reporting Council Annual Seminar November 2011 

PwC Audit Committee Workshop: Governance, Risk and Assurance November 2011 



PwC Cyber Security workshop December 2011 

Dato’ Mokhzani bin Mahathir The Mandate of Talent Corporation Malaysia Berhad and partnership 21 February 2011 








Asgari bin Mohd Fuad The Mandate of Talent Corporation Malaysia Berhad and partnership 21 February 2011 

Stephens 


Inaugural ISIS Praxis Seminar 3 March 2011 

Islamic Equity Instruments and Islamic Equity Capital Market 27 April 2011 

Global Economic Prospects, Oil and Capital Flows 3 June 2011 

Options Strategies & Risk Management - Past, Present and Future 8 August 2011 

Improving Corporate Governance in Malaysia Capital Markets 11 August 2011 

– The Role of the Audit Committee 

The Financial Numbers Game: How Companies Use Creative Accounting 13 August 2011

MAXIS BERHAD 


225 



and Strategy, covering an overview of Corporate Responsibility, 

Maxis’ CR Framework and Strategy, and BOD’s role in enabling CR 

within Maxis 

PwC Seminar 2011 – Shaping Sustainable Growth 13 October 2011 

2012 Budget Proposal: Tax Changes and Its Impact on Business 18 October 2011 

ISIS Praxis Seminar 2012 23 November 2011 

Ghassan Hasbani GSMA Mobile World Congress 14-17 February 2011 

Mobile Venture Forum 16-20 February 2011 

World Economic Forum 16 February 2011 

The Mandate of Talent Corporation Malaysia Berhad and Partnership 21 February 2011 


The 6th Synergy Council Meetings 2 March 2011 

The Harvard Arab Alumni 6th Annual Arab World Conference 17 March 2011 

Annual TMT Leadership Event 2011: TMT in Emerging Markets 29-30 March 2011 

Rutberg Summit 13-15 April 2011 

5th TMT Finance and Investment Middle East 2011-Conference 9-10 May 2011 

& Award Ceremony 

Zeitgeist Europe 2011 15-17 May 2011 

ARAB Telecom and Internet Forum 2-3 June 2011 

8th Annual Media and Telecommunication Convention 6-7 June 2011 

The 7th Synergy Council Meetings 8 June 2011 

MELI Seminar - “The Challenge of Leadership” 9-14 September 2011 



Responsibility, Maxis’ CR Framework & Strategy, and BOD’s role in 

enabling CR within Maxis

226 


STATEMENT ON 

CORPORATE 

GOVERNANCE 

Continued 


The GITEX Technology Week 9-13 October 2011 

Special Meeting on Economic Growth and Job Creatiion in the 

Arab World 21-23 October 2011 

31 October- 

Next Generation Telecommunication 2011 Summit 2 November 2011 

HAAA Weekend 10-13 November 2011 

Ericsson Middle East Summit 2012 23 November 2011 



Dr Zeyad Thamer Mobile World Congress 2011 14-17 February 2011 

H. AlEtaibi 



Leadership Journey 10 & 11 May 2011 

Telecom CTO Technology Forum 17 May 2011 

Mandatory Accreditation Program for Directors of Public 25 & 26 May 2011 

Listed Companies 







Dr Fahad Hussain S. Mushayt The Mandate of Talent Corporation Malaysia Berhad and Partnership 21 February 2011 


Mobile World Congress 2011 14-17 February 2011 

Beyond Connectivity 2011 25-27 April 2011 

5th TMT Finance and Investment Middle East 9-10 May 2011 

Review of Board Effectiveness in the Gulf 2011 – Nominate 6-8 June 2011 

a Senior Director Workshop 

Orchestrating Winning Performance (OWP) 26 June-1 July 2011

MAXIS BERHAD 


227 


Members and the Board : Your Role and its Effectiveness 7 August 2011 

Technology : Regulatory and Business Implications 8 August 2011 

Finance : Challenging Financial Results 9 August 2011 




16 & 17 October 

Simplified Strategic Planning 2011 



Chan Chee Beng The Mandate of Talent Corporation Malaysia Berhad and Partnership 21 February 2011 







Sandip Das CRM Phase 2 workshop 9-10 February 2011 



S P Setia Leadership Talk 6 April 2011 

Executive Coaching 29 April 2011 




PEMANDU, MITI and Infrastructure Focus Economic Transformation 

Round Table 6 October 2011 

McKinsey Rising Stars - CEO Conversation 16 November 2011 


and trends that are shaping the sector

228 

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MAXIS BERHAD 


229 


LIFE SERVICES 

CLOUD 

DISTRIBUTION

230 


INTERNAL CONTROL 

STATEMENT 

INTRODUCTION 

The Board is pleased to share the key aspects of the Group’s internal control system in respect of the financial year ended 31 


In discharging its stewardship responsibilities the Group has established procedures of internal control that are in accordance 

with the guidance provided to Directors as set out in the “Statement on Internal Control: Guidance for Directors of Public Listed 

Companies”. These procedures, which are subject to regular review by the Board, provide an ongoing process for identifying, 

evaluating and managing significant risks faced by the Group that may affect the achievement of its business objectives. 

BOARD RESPONSIBILITY 

The Board of Maxis, in discharging its responsibilities, is fully committed to the maintenance of a sound internal control environment 

to safeguard shareholders’ investments and the Group’s assets. The Board has overall responsibility for the Group’s system of 

internal control and its effectiveness, as well as reviewing its adequacy and integrity. The system of internal control is designed to 

manage risks that may impede the achievement of the Group’s business objectives rather than to eliminate these risks. Internal 

control systems can only provide reasonable and not absolute assurance against material misstatement or loss. 

RISK MANAGEMENT 

The Board regards risk management as an integral part of the Group’s business operations. There is an established structured 

process for identifying, analysing, measuring, monitoring and reporting on the significant risks that may affect the achievement 

of its business objectives. Maxis also has an automated system which complements the establishment and implementation of the 

Enterprise Risk Management process. 

Management is responsible for creating a risk-aware culture and for ensuring the necessary knowledge for risk management is present. 

The Enterprise Risk Management department, in conjunction with the Group’s operational managers, continuously monitors and 

evaluates the progress of the identified risks and reports the results to Senior Management. The Audit Committee is also provided with 

a half-yearly report on the enterprise risk map and the status of progress towards mitigating key risk areas. 

Risk Awareness sessions are also conducted at the operational level to help sustain a risk-aware culture and promote an 

understanding of the importance of risk management across the different functions in the Group. In addition, a risk-based approach 

is embedded into existing key processes as well as new key projects and is reflective of the Group’s internal control systems. This is 

elaborated in detail under a separate statement called “Risk Management” on pages 236 to 238. 

CONTROL ENVIRONMENT AND STRUCTURE 

The Board and Management have established numerous processes for identifying, evaluating and managing the significant risks 

faced by the Group. These include updating the system of internal controls when there are changes to the business environment or 

regulatory guidelines. The key elements of the Group’s control environment include: 

1. Organisation Structure 

In providing direction and oversight, the Board is supported by a number of established Board committees, namely the Audit, 

Nomination, Remuneration and ESOS Committees. Each Committee has clearly defined terms of reference and responsibilities.

MAXIS BERHAD 


231 

Additionally, the Board has the power to establish ad-hoc committees comprising Directors or Directors and Management to 

oversee specific matters within the defined scope and terms of reference. Responsibility for implementing the Group’s strategies 

and day-to-day businesses is delegated to Management. The organisation structure sets out clear segregation of roles and 

responsibilities, lines of accountability and levels of authority to ensure effective and independent stewardship. 

2. Audit Committee 

The Audit Committee comprises only non-executive members of the Board, the majority of whom are independent Directors. 

The current composition of the Audit Committee comprises members who bring with them a wealth of knowledge, expertise 

and experience from different industries and backgrounds. The Audit Committee evaluates the adequacy and effectiveness of 

the Group’s risk management and internal control systems and reviews internal control issues identified by internal auditors, 

external auditors and management. Throughout the financial year, the Audit Committee members are briefed on corporate 

governance practices, updates to Malaysian Financial Reporting Standards, as well as legal and regulatory requirements in 

addition to key matters affecting the financial statements of the Group. 

The Audit Committee also reviews and reports to the Board the engagement and independence of the external auditors and their 

audit plan, nature, approach, scope and other examinations of the external audit matters. It also reviews the effectiveness of the 

internal audit function which is further described in the following section on Internal Audit. 

The Audit Committee continues to meet regularly and has full and unimpeded access to the internal and external auditors and 

all employees of the Group. The Chairman of the Audit Committee provides the Board with reports on all meetings of the Audit 

Committee. Further details of the activities undertaken by the Audit Committee are set out in the Audit Committee Report on 

pages 204 to 210. 

3. Internal Audit 

The Internal Audit department continues to independently review key processes, checks compliance with policies/procedures, 

evaluates the adequacy and effectiveness of internal control and risk management systems and highlights significant findings 

and corrective measures in respect of any non-compliance to Senior Management and the Audit Committee on a timely basis. 

Its work practices are governed by the Internal Audit Charter, which is subject to revision on an annual basis. The annual 

audit plan, established primarily on a risk-based approach, is reviewed and approved by the Audit Committee annually and 

an update is given to the Audit Committee every quarter. The Audit Committee oversees the Internal Audit department’s 

function, its independence, scope of work and resources. The Internal Audit department also maintains a quality assurance 

and improvement programme and continuously monitors its overall effectiveness. An external assessment of the internal audit 

function is carried out at least once every five years. 

The Internal Audit function meets the requirements of the latest International Standards for the Professional Practice of Internal 

Auditing of the Institute of Internal Auditors Inc. Further activities of the Internal Audit function are set out in the Audit 

Committee Report on pages 204 to 210. 

4 Code of Business Practice 

The Group is committed to conducting business fairly, impartially and ethically and in full compliance with all laws and 

regulations. To this end, there is a detailed Maxis Code of Business Practice (the Code), which stipulates how Directors and 

employees as well as external parties such as vendors, suppliers and contractors should conduct themselves in all business 

matters. All Directors and employees are required to declare that they are in compliance with the Code upon joining the Group 

and on an annual basis. External parties such as vendors, suppliers and contractors who conduct business with the Group are 

required to sign a separate declaration that they have read and will adhere to the contents of the Code.

232 



STATEMENT 

Continued 

To support the implementation and effectiveness of the Code, there is an established Office of Business Practice to provide 

policy guidance and to facilitate compliance. The Office of Business Practice will continuously look at ways to enhance the 

Group’s highest standards of business conduct and ethics, and to benchmark these against best practices. The Company has 

also established the Ethics Hotline, a safe and effective channel to allow employees or parties dealing with us to report any 

observed behavioural inconsistencies which are not in accordance with the general standards and business ethics. 

5. Revenue Assurance 

The Revenue Assurance department is responsible for the continuous monitoring of potential revenue leakage that may arise 

from day-to-day operations. Processes and controls within the revenue cycle are reviewed on a rotational basis to ensure 

they function effectively and efficiently. This includes performance and examination of regular test calls, reconciliations of 

calls from switches to the billing systems and independent rating of calls via automated tools. These findings are reported to 

the Management. Since September 2011, the quarterly review has been changed to a half-yearly review where key issues on 

identified revenue leakages and the corresponding action taken are reported to the Audit Committee. The Revenue Assurance 

Working Committee meets quarterly to address key revenue assurance issues and drive revenue assurance initiatives across the 

Group. 

6. Subscriber Fraud Management 

The Subscriber Fraud Management (SFM) function complements the Revenue Assurance function. Whilst the Revenue 

Assurance function reviews controls within the revenue cycle as indicated above, the SFM function monitors daily subscriber 

calls on a near real-time basis. Appropriate actions are taken immediately for suspected fraudulent calls, using an industry 

developed system to monitor call patterns on a 24/7 basis throughout the financial year and other manual reporting 

investigations. It also reviews key new services and products for possible fraud risk and recommends counter-measures. Fraud 

findings with remedial actions taken are reported half-yearly to the Management and the Audit Committee. 

7. Business Continuity Planning 

The Business Continuity Planning (BCP) is responsible for identifying activities and operations that are critical to sustaining 

business operations in the event of a disaster. These activities include facilitating the building of additional redundancies 

in network infrastructure and establishing alternate sites where key operational activities can be resumed. A risk-based 

approach is applied in identifying the key initiatives and their levels of importance by reviewing critical systems and singlepoint 

failures as well as their impact on the business of the Group as a whole. During the financial year, selected critical 

areas as identified by risk priority were tested to assess the effectiveness of the implemented BCP initiatives. These tests 

were successfully executed and the progress of these initiatives was reported monthly to the Management and presented 

half-yearly to the BCP Steering Committee and the Audit Committee. 

8. Regulatory 

The Regulatory function reports to the Chief Financial Officer. It ensures compliance with the Communications and 

Multimedia Act 1998 (CMA), and its subsidiary legislation, which regulate the Group’s core business in the communications 

and multimedia sector in Malaysia. As a licensee under the CMA, the Group adheres to its licensing conditions, as well as 

economic, technical, social and consumer protection regulations embedded in the CMA and its subsidiary legislation. The 

Group actively participates in new regulatory and industry development consultations initiated by the regulator SKMM. 

The Regulatory function also frequently engages the SKMM and the Ministry of Information Communication and Culture in 

discussions on pertinent industry issues.

MAXIS BERHAD 


233 

9. Legal 

The Legal department plays a pivotal role in ensuring that the interests of the Group are preserved and safeguarded from a 

legal perspective. It also plays a key role in advising the Board and Management on legal and strategic matters. The Board is 

briefed through reports to the Audit Committee as and when there are any changes in applicable provisions of the law. 

10. Limits of Authority 

A Limits of Authority (LOA) manual sets out the authorisation limits for various levels of Maxis’ Management and staff and also 

those matters requiring Board approval to ensure accountability, segregation of duties and control over the Group’s financial 

commitments. The LOA manual is reviewed and updated periodically to reflect business, operational and structural changes. 

11. Policies and Procedures 

There is extensive documentation of policies, procedures, guidelines and service level agreements in manuals and on the Group’s 

intranet site including those relating to Financial, Contract Management, Marketing, Procurement, Human Resources, Information 

Systems, Network Operations, Legal, System and Information Security Controls. Continuous control enhancements are made in 

line with Maxis’ new and growing business strategy including the strengthening of controls over device management. 

12. Financial and Operational Information 

A detailed budgeting and reporting process has been established. Comprehensive budgets are prepared by the operating 

units and presented to the Board before the commencement of a new financial year. Upon approval of the budget, the 

Group’s performance is then tracked and measured against the approved budget on a monthly basis. Reporting systems which 

highlight significant variances against plan are in place to track and monitor performance. These variances in financial as well as 

operational performance indices are incorporated in detail in the monthly management reports. On a quarterly basis, the results 

are reviewed by the Board to enable them to gauge the Group’s overall performance compared to the approved budgets and 

prior periods. 

13. Systems and Information Security 

The Systems and Information Security department (SIS) is responsible for continuously monitoring and resolving security threats 

to the Company both internally and externally. This includes conducting security awareness, vulnerability assessment and 

penetration test programmes, and compliance audits on the IT systems and Networks of Maxis to reduce the impact of service 

interruption due to attacks, negligence and malware. The effectiveness of the security programme is validated by external 

security consulting companies. 

Apart from the internal security compliance programmes, SIS is also targeting to seek and maintain compliance of several 

regulatory and industry security programmes, namely: ISO27001:2005, Payment Card Industry/Data Security Standard, and the 

Personal Data Protection Act 2010 by end of 2012. 

SIS is governed by a group of Maxis Senior Leadership team members who will meet quarterly to direct and approve the 

corporate security policies and standards set by the department and security projects undertaken by the team. It is also 

responsible for updating the Audit Committee at least annually on the Company’s security status.

234 



STATEMENT 

Continued 

MONITORING AND REVIEW 

The processes that monitor and review the effectiveness of the system of internal controls include: 

1. Management Representation to the Board by the Chief Executive Officer on the control environment of the Group, 

based on representations made to him by Management on the control environment in their respective areas. Any 

exceptions identified are highlighted to the Board. 

2. Internal Audit in their quarterly report to the Audit Committee and Senior Management continues to highlight significant 

issues and exceptions identified during the course of their review on processes and controls compliance. 

3. Defalcation Committee meets and deals regularly on matters pertaining to fraud and unethical practices. All issues arising 

from work carried out by the investigation team within the Internal Audit department and Management are channeled to this 

committee for deliberation. Appropriate actions are then taken based on the findings. 

4. Risk Management reports to the Board on a half-yearly basis through the Audit Committee on the risk profile of the Group 

and the progress of action plans to manage and mitigate the risks. 

CONCLUSION 

For the financial year under review and up to the date of issuance of the financial statements, the Board is satisfied with the 

adequacy, integrity and effectiveness of the Group’s system of risk management and internal control. No material losses, 

contingencies or uncertainties have arisen from any inadequacy or failure of the Group’s system of internal control that would 

require separate disclosure in the Group’s Annual Report. 

REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS 

As required by paragraph 15.23 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the external auditors 

have reviewed this Internal Control Statement. Their review was performed in accordance with Recommended Practice Guide 

(RPG) 5: Guidance for Auditors on the Review of Directors’ Statement on Internal Control, issued by the Malaysian Institute of 

Accountants. Based on their review, the external auditors have reported to the Board that nothing has come to their attention that 

causes them to believe that this statement is inconsistent with their understanding of the process the Board has adopted in the 

review of the adequacy and integrity of internal control of the Group. RPG 5 does not require the external auditors to, and they did 

not, consider whether this statement covers all risk and controls, or to form an opinion on the effectiveness of the Group’s risk and 

control procedures.

MAXIS BERHAD 


235 


DIRECTORS’ 


STATEMENT 

The Companies Act, 1965 (the Act) requires the Directors to prepare financial statements for each financial year in accordance with 

the Malaysian Accounting Standards Board’s (MASB) Approved Accounting Standards in Malaysia for Entities Other than Private 

Entities, and the provisions of the Act and the Main Market Listing Requirements of Bursa Securities, and to lay these before the 

Company at its Annual General Meeting. 

The Directors are responsible for ensuring that the financial statements provide a true and fair view of the financial position of the 

Group and the Company as at 31 December 2011 and of their financial performance and cash flows for the financial year ended 31 


The Act also requires the Directors to keep such accounting and other records in a manner that enables them to sufficiently explain 

the transactions and financial position of the Company and the Group and to prepare true and fair financial statements and any 

documents required to be attached, as well as to enable such accounting records to be audited conveniently and properly. 

In undertaking the responsibility placed upon them by law, the Directors have relied upon the Group’s system of internal control to 

provide them with reasonable grounds to believe that the Group’s accounting records, as well as other relevant records, have been 

maintained by the Group in a manner that enables them to sufficiently explain the transactions and financial position of the Group. 

This also enables the Directors to ensure that true and fair financial statements and documents required by the Act to be attached, 

are prepared for the financial year to which these financial statements relate. 

Incorporated on pages 106 to 197 of this Annual Report are the financial statements of the Group and the Company for the 

financial year ended 31 December 2011.

236 


RISK 

MANAGEMENT 

ENTERPRISE RISK MANAGEMENT 

The Board is pleased to share the activities of Maxis Enterprise Risk Management in relation to the Group in respect of the financial 

year ended 31 December 2011. 

The Maxis Group operates in a highly competitive and technology-based environment. The major risks to which the Group is exposed 

are strategic, operational, regulatory, financial, market, technological, products and reputational risks. These risks are proactively 

reviewed, monitored and managed by Maxis through the Enterprise Risk Management (ERM) process. 

Maxis Enterprise Risk Management adopts a structured and integrated approach in managing key business risks in line with the 

risk management framework and best practices. This framework is consistent with the Committee of Sponsoring Organisations 

(COSO) Enterprise Risk Management framework and involves the systematic identification and analysis of risks which impact the 

organisation’s objectives, formulation of response strategies and monitoring and reporting of the risk management progress on a 

regular basis. The implementation of the enterprise risk management framework ensures that major areas of risks are identified, 

managed and controlled or mitigated effectively. 

OBJECTIVE 

CONTROL 

RISKS 

ALIGNMENT 

IDENTIFY & ANALYSE 

RESPOND 

MONITOR & REPORT 

MAXIS’ ENTERPRISE RISK MANAGEMENT FRAMEWORK 

The ERM process is based on the following principles: 

• Consider and manage risks enterprise-wide; 

• Integrate risk management into business activities; 

• Manage risks in accordance with the Risk Management framework; 

• Tailor responses to business circumstances; and 

• Communicate risks and responses to Management. 

Risk management is firmly embedded within the business units through the annual strategic and budgeting processes. The business 

units, being the first line of defense against risks, are responsible for identifying, mitigating and managing risks within their 

respective areas. These units are to ensure that their day-to-day business activities are carried out within the established risk policies, 

procedures and limits.

MAXIS BERHAD 


237 

All risks identified are assessed to determine the risk ranking and displayed on a 5 by 5 risk matrix. With this visual representation, 

the business owners and Senior Management team can prioritise their efforts and manage the different classes of risks 

appropriately. 

Integrated within the ERM framework, Maxis has an automated risk management system, consisting of the Corporate Risk 

Scorecard, Corporate Digital Assurance and Consolidator and Scoring modules, for identifying, controlling, monitoring and 

reporting of risk exposure. These provide a comprehensive view of enterprise risks of Maxis on a single common platform. 

The Board of Directors is ultimately responsible for identifying principal risks and ensuring the implementation of appropriate 

systems to manage these risks. The oversight of this critical area is carried out through the Audit Committee and reported to the 

Board at semi-annual meetings. 

The ongoing effectiveness of the risk management framework is confirmed by Internal Audit through annual audit and review procedures. 

There is a dedicated independent Enterprise Risk Management department responsible for managing the risk management process 

in the Group. The following activities were carried out by the department, amongst others, in the discharge of its duties and 

responsibilities as set out in the charter: 

• Steered the Group’s Risk Management programme and ensured timely updates of risk profiles by the respective business units; 

• Provided reports to the Audit Committee on the consolidated risks faced by the respective business units and action plans to 

mitigate such risks; 

• Presented a summary of key risks to the Audit Committee; 

• Conducted risk awareness and review sessions with relevant heads of departments/risk owners to promote a proactive risk 

management culture and tracked risk implementation issues; 

• Provided assistance to key business units to ensure risk management is firmly embedded as a process and that all key risks are 

identified and appropriate mitigating actions and controls are in place; 

• Analysed risk assessment reports from all business units and conducted presentations at the Senior Leadership Team meeting 

(chaired by the CEO or CFO in the CEO’s absence), for deliberation of risks that impact the annual operating plans and 

objectives by Senior Management; 

• Monitored the results of the Enterprise Risk Management department’s key performance indicators; and 

• Provided relevant information on risk management to all Maxis staff through the internal website. 

RISK RATING SCALE - 5 BY 5 MATRIX 

Impact 

1. CATASTROPHIC 

2. MAJOR 

3. MODERATE 

4. MINOR 

5. INSIGNIFICANT 

HIGH 

Likelihood of 

occurence 

1. UNLIKELY 

2. LOW 

PROBABILITY 

3. POSSIBLE 4. HIGH 

PROBABILITY 

5. ALMOST 

CERTAIN 

MEDIUM 

LOW

238 


RISK 

MANAGEMENT 

Continued 

MANAGING OPERATIONAL RISKS – BUSINESS CONTINUITY 

In addition to the risk management function, Maxis has put in place disaster recovery and business continuity plans which are tested 

regularly to ensure prompt recovery of critical business functions in the event of major business or system disruptions. This is carried 

out via the establishment of a Crisis Management Team (CMT) to ensure uninterrupted service to our customers in Malaysia. To 

preserve shareholder value, Maxis is committed to ensuring the timely recovery of its core business and its continuity in the event of 

a disaster at any of its locations. Business Continuity (BC) is of paramount importance to the Company and its focus is maintained 

by a dedicated team of certified BC practitioners. Maxis is certified under the British Standard BS 25999 (Business Continuity 

Management), therefore key BC disciplines such as risk evaluation, development of BC strategies and infrastructure plus testing of 

response plans are in line with international BC best practices. 

Annually, company-wide crisis simulation exercises, involving core divisions of operations, are conducted to test the response of the 

CMT members. In addition, an average of 50 simulation tests of varying complexity are conducted annually on core divisions and 

their respective critical equipment. Ongoing awareness programmes are also conducted for CMT coordinators and staff nationwide. 

The progress of these initiatives is reported monthly to Management and presented twice a year to the Business Continuity 

Programme Steering Committee which is chaired by the Joint Chief Operating Officer. In addition, key risks are highlighted to the 

Audit Committee in conjunction with the ERM process. Where necessary the Group mitigates the risk of high-impact loss events 

through appropriate insurance coverage. 

BUSINESS CONTINUITY PROCESS FLOW 

Phase 1 

Programme Justification 

and Authorisation 

Phase 2 

PLAN, DEVELOPMENT, TESTING AND TRAINING 

Phase 3 

MAINTENANCE 

1. PROJECT INITIATION 

RISK ASSESSMENT 

DEVELOP BCP CAPABILITIES 

2. RISK IDENTIFICATION 

4. RECOVERY STRATEGIES 

RISK AVOIDANCE 

RISK REDUCTION 

RISK TRANSFER 

5. RECOVERY INFRASTRUCTURE 

NETWORK FACILITIES 

IT INFRASTRUCTURE 

OFFICE FACILITIES AND OTHERS 

8. TESTING 

9. PLAN MAINTENANCE 

3. BUSINESS IMPACT 

ANALYSIS 

6. RESPONSE PLAN 

7. AWARENESS/ 

TRAINING 

10. AUDIT REVIEW

MAXIS BERHAD 


239 


ETHICAL 

BUSINESS 

PRACTICES 

As a public listed Company, Maxis Berhad (including its subsidiaries and collectively referred to as “the Company”) is 

committed to conducting its business fairly, impartially and in full compliance with all laws and regulations. Honesty 

and integrity must be upheld at all times in the course of the Company’s daily dealings between its Directors, 

employees and its customers, vendors, contractors, suppliers and the business community generally. Directors and 

employees are prohibited from engaging in business practices that affect and impair the Company’s integrity, image 

and reputation. 

To this end, the Company has established the Code of Ethics. It was formalised and introduced to employees in September 1997. 

It generally governed the behaviour and action of employees in the daily performance of their work and their business conduct. In 

November 2001, the Code of Ethics was re-named the Maxis Code of Business Practice (the Code) consolidating the Code of Ethics 

along with the salient points of other policies namely the Procurement Manual, Work Schedule Policy, Fleet Policy, Manual of Limits 

of Authority, etc. Apart from providing policy guidance, it is intended to assist Directors, employees and parties doing business with 

the Company to understand and comply with the Company’s expectations of sound business practice. 

The Code outlines four principal areas of business relationship. Its objective is to ensure that under no circumstances should the 

Company’s business interactions be tainted by improprieties or malpractices, be it by Directors, employees or parties doing business 

with the Company. This includes the clear message that the Company will not accept business courtesies, whether directly or indirectly, 

except courtesies channeled through the Office of Business Practice or those offered in situations that are accepted as business norms. 

RESPONSIBILITY AND ACCOUNTABILITY: 

Directors and Employees: 

Directors and employees must comply with the Code; ignorance of its existence or any related amendment or variation to it will not 

be accepted as an excuse for its breach. The Company requires all Directors and employees to sign an annual declaration to abide by 

this Code, as it will be continuously updated to suit business requirements. 

Managers and Supervisors: 

Managers and supervisors have the added responsibility of taking the lead and ensuring all employees conform to the Code, in both 

words and actions. 

They must also be on the constant lookout for indications of any unethical or even illegal business conduct. They will also be held 

accountable to some extent if unethical or illegal business conduct committed by their employees are due to their negligence. 

Vendors and Suppliers/Contractors: 

The Company also expects all its suppliers, vendors, contractors and their respective subcontractors to conform to the principles 

outlined in the Code in their relationships and dealings with the Company. If difficulties arise, the Company will work closely with 

them to resolve any issues arising, and if this fails, the Company will find other parties who can meet the Company’s business 

standards as prescribed in the Code. 

Open Door Practice: 

If an employee has any concerns, queries, knowledge or information concerning any unethical business practices taking place 

involving the Company, he or she is expected to take appropriate and consistent action by informing his or her manager or the 

Office of Business Practice. All correspondences with the manager or the Office of Business Practice shall be treated in the strictest 

confidence unless required to be declared under law. Anonymous complaints and/or letters will, however, not be entertained. All 

employees shall further be treated with dignity and respect and will not be subject to retaliation, threats or harassment for raising 

concerns or reporting any violations of the Code. 

The Open Door Practice is also applicable to the Company’s suppliers, vendors, contractors and/or their respective subcontractors, 

in that, if they have any concerns about any unethical business practices taking place in the Company, they shall be responsible to 

contact the Office of Business Practice immediately.

240 


ETHICAL 

BUSINESS 

PRACTICES 

Continued 

The Office of Business Practice can be contacted via: 

Telephone: 03-23307002 (Office Hours) Office address: Office of Business Practice 

E-mail: codebp@maxis.com.my Maxis Code of Business Practice 

c/o Human Resources Division 

Level 17, Menara Maxis, KLCC 

50088, Kuala Lumpur. 

Ethics Hotline (A Whistle Blowing Mechanism): 

To further support the efforts of the Office of Business Practice in ensuring better corporate governance, the Company has 

established a whistle blowing mechanism, called the Ethics Hotline. 

It is a safe and effective channel for our employees, parties dealing with the Company or even our customers to report to the 

Company any observed behavioral inconsistencies and/or malpractices such as, but not exhaustive to, the following: 

1. Abuse and theft 

2. Breach of contract 

3. Negligence resulting in substantial loss and/or specific danger to public health and safety 

4. Manipulation of company data/records 

5. Financial irregularities, including fraud or suspected fraud 

6. Criminal offence 

7. Breach of customer confidentiality and proprietary information 

8. Deliberate violation of law and regulation 

9. Wastage and/or misappropriation of company funds/properties 

10. Breach of the Maxis Code of Business Practice 

11. Any other unethical, biased, favoured, imprudent behaviour or conduct which is not in accordance with the general standards of 

business ethics 

To ensure that this policy is adhered to, and that the concerns raised through this channel will be received and acted upon seriously, 

the Company will abide by the following guiding principles: 

1. Investigate with impartiality 

2. Ensure that the whistle blower and the person processing the protected disclosure is not victimised for doing so 

3. Treat victimisation as a serious matter including instituting disciplinary action on such person(s) 

4. Ensure complete confidentiality 

5. Make no attempt to conceal evidence of the protected disclosure 

6. Provide an opportunity of being heard to the persons involved especially to the ‘accused’ 

7. Protected disclosure will be deliberated at the Defalcation Committee level (if it involves breach of ethical matters) and the 

findings will be reported to the Audit Committee. 

Although the Company will treat every report it receives seriously, action may also be considered against the whistle blower if the 

report is found to be false and/or a deliberate attempt to shame and humiliate another party. 

The Ethics Hotline will be manned on a 24-hour basis and all information received will be treated with strict confidentiality. Any 

observed behavioral inconsistencies can be reported through the following Ethics Hotline channels: 

1. Ethics Hotline: 

(a) 03-23306678 (during office hours) (b) 017-2003922 (24-hours, SMS or call) 

2. Email: ethics@maxis.com.my 

3. Letters/documents to be addressed to: Ethics Hotline Office 

c/o Internal Audit Department 


50088, Kuala Lumpur, Malaysia. 

(The Ethics Hotline details are also available in the Maxis website at www.maxis.com.my)

MAXIS BERHAD 


241 


SIZE OF 

SHAREHOLDINGS 

As At 30 March 2012 

SHARE CAPITAL 

Authorised 

Issued and paid-up 

Class of Shares 

Voting Right 

: RM1,200,000,000 divided into 12,000,000,000 ordinary shares of RM0.10 each 

: RM750,000,000 divided into 7,500,000,000 ordinary shares of RM0.10 each 

: Ordinary Shares of RM0.10 each 

: One vote per ordinary share 

NO. OF % OF NO. OF % OF 

SIZE OF HOLDINGS SHAREHOLDERS SHAREHOLDERS SHARES HELD ISSUED SHARES 

Less than 100 268 0.49 2,124 0.00 

100 - 1000 27,572 50.80 26,373,497 0.35 

1001 - 10000 22,396 41.27 89,252,128 1.19 

10001 - 100000 3,430 6.32 96,352,043 1.28 

100001 - 374999999 (*) 605 1.12 2,038,020,208 27.18 

375000000 and above (**) 1 0.00 5,250,000,000 70.00 

Total 54,272 100.00 7,500,000,000 100.00 

* Less than 5% of issued holdings 

** 5% and above of issued holdings 

Note: 

Information in the above table is based on Record of Depositors dated 30 March 2012.

242 


DISTRIBUTION TABLE ACCORDING TO 

CATEGORY OF 

SHAREHOLDERS 


NO. OF % OF NO. OF % OF 

CATEGORY OF SHAREHOLDERS SHAREHOLDERS SHAREHOLDERS SHARES HELD ISSUED SHARES 

Individuals 49,024 90.33 188,365,730 2.51 

Bank/Finance Companies 76 0.14 860,633,593 11.48 

Investment Trusts/Foundations/Charities 4 0.01 53,000 0.00 

Other Types of Companies 435 0.80 5,279,962,907 70.40 

Government Agencies/Institutions 6 0.01 8,027,200 0.11 

Nominees 4,727 8.71 1,162,957,570 15.50 

Total 54,272 100.00 7,500,000,000 100.00 

Note: 

Information in the above table is based on Record of Depositors dated 30 March 2012.

MAXIS BERHAD 


243 


DIRECTORS’ INTEREST 

IN SHARES 


Based on the Register of Directors’ Shareholdings, the interests of the Directors in the shares of the Company (both direct and indirect) 

as at 30 March 2012 are as follows: 

NUMBER OF ORDINARY SHARES 

OF RM0.10 EACH IN MAXIS 

(“MAXIS SHARES”) 

% OF ISSUED SHARES 

NAME DIRECT * INDIRECT DIRECT INDIRECT 

Raja Tan Sri Dato’ Seri Arshad bin Raja Tun Uda 750,000 (1) - 0.01 - 

Robert William Boyle 100,000 (2) - # - 

Dato’ Mokhzani bin Mahathir 750,000 1,000 (3) 0.01 # 

Asgari bin Mohd Fuad Stephens 375,000 (1) - 0.005 - 

Ghassan Hasbani - - - - 

Dr Zeyad Thamer H. AlEtaibi - - - - 

Dr Fahad Hussain S Mushayt - - - - 

Augustus Ralph Marshall 750,000 (1) - 0.01 - 

Chan Chee Beng 750,000 - 0.01 - 

Sandip Das 750,000 (2) - 0.01 - 

* Subscription of Maxis Shares under the preferential share allocation scheme pursuant to Initial Public Offering of Maxis 

Notes: 

# Negligible 

(1) Held through a nominee, namely CIMSEC Nominees (Tempatan) Sdn Bhd 

(2) Held through a nominee, namely CIMSEC Nominees (Asing) Sdn Bhd 

(3) Deemed interest in shares of the Company held by spouse pursuant to Section 134 (12)(c) of the Companies Act, 1965

244 


30 LARGEST 

SHAREHOLDERS 


NO. OF SHARES 

NO. NAME HELD % 

1 Maxis Communications Berhad 5,250,000,000 70.00 

2 Citigroup Nominees (Tempatan) Sdn Bhd 

Employees Provident Fund Board 371,502,500 4.95 

3 Amanahraya Trustees Berhad 

Skim Amanah Saham Bumiputera 365,888,700 4.88 

4 Kumpulan Wang Persaraan (Diperbadankan) 88,970,800 1.19 


Amanah Saham Malaysia 86,075,200 1.15 


Amanah Saham Wawasan 2020 76,384,400 1.02 

7 Cartaban Nominees (Asing) Sdn Bhd 

Exempt AN For State Street Bank & Trust Company (West CLT OD67) 59,377,400 0.79 


As 1Malaysia 53,629,000 0.72 

9 Lembaga Tabung Haji 47,631,267 0.64 


Exempt AN For EastSpring Investments Berhad 43,090,600 0.57 

11 HSBC Nominees (Asing) Sdn Bhd 

BBH And Co Boston For Vanguard Emerging Markets Stock Index Fund 41,541,350 0.55 


Exempt AN For JPMorgan Chase Bank, National Association (U.S.A.) 40,656,550 0.54 

13 Valuecap Sdn Bhd 40,397,700 0.54 


Amanah Saham Didik 38,613,000 0.51 

15 Malaysia Nominees (Tempatan) Sendirian Berhad 

Great Eastern Life Assurance (Malaysia) Berhad (Par 1) 31,523,700 0.42 


Exempt AN For The Bank Of New York Mellon (Mellon Acct) 23,682,257 0.32 


Exempt AN For JPMorgan Chase Bank, National Association (U.A.E.) 20,474,300 0.27

MAXIS BERHAD 


245 

NO. OF SHARES 

NO. NAME HELD % 


Government of Singapore Investment Corporation Pte Ltd for Government of Singapore (C ) 20,438,500 0.27 


Exempt AN for American International Assurance Berhad 18,977,400 0.25 


BNY Brussels for Wisdomtree Emerging Markets Equity Income Fund 18,476,500 0.25 


BBH (LUX) SCA For Fidelity Funds South East Asia 11,403,500 0.15 

22 Amanah Trustees Berhad 

Public Islamic Dividend Fund 11,134,400 0.15 

23 CIMSEC Nominees (Tempatan) Sdn Bhd 

CIMB For Gegas Cekap Sdn Bhd (PB) 10,000,000 0.13 

24 CIMSEC Nominees (Tempatan) Sdn Bhd 

CIMB For Tiara Getaway Sdn Bhd (PB) 10,000,000 0.13 


Exempt AN For JPMorgan Chase Bank, National Association (U.K) 9,184,770 0.12 


Public Islamic Equity Fund 8,825,000 0.12 


Exempt AN For JPMorgan Chase Bank, National Association (NORGES BK LEND) 8,598,126 0.11 


TNTC For Mondrian Emerging Markets Equity Fund L.P. 8,492,300 0.11 


HSBC-FS For Schroder Asian Asset Income Fund 8,484,000 0.11 

30 Citigroup Nominees (Asing) Sdn Bhd 

Legal & General Assurance (Pensions Management) Limited (A/C 1125250001) 8,241,531 0.11 

Note: 

Information in the above table is based on Record of Depositors dated 30 March 2012

246 


INFORMATION ON 

SUBSTANTIAL 

SHAREHOLDERS 

The shareholders holding more than 5% interest, direct and indirect, in the ordinary shares of RM0.10 each in Maxis Berhad (“the 

Company”) (“Shares”) based on the Register of Substantial Shareholders of the Company as at 30 March 2012 are as follows: 

DIRECT 

INDIRECT 

NO. OF 

NO. OF 

SHARES 

SHARES 

NAME OF SUBSTANTIAL SHAREHOLDER HELD % HELD % 

Maxis Communications Berhad (“MCB”) 5,250,000,000 70.00 - - 

Binariang GSM Sdn Bhd (“BGSM”) (1) - - 5,250,000,000 70.00 

Usaha Tegas Equity Sdn Bhd (“UTE”) (2) - - 5,250,000,000 70.00 

Usaha Tegas Sdn Bhd (“Usaha Tegas”) (3) - - 5,250,000,000 70.00 

Pacific States Investment Limited (“PSIL”) (4) - - 5,250,000,000 70.00 

Excorp Holdings N.V. (“Excorp”) (5) - - 5,250,000,000 70.00 

PanOcean Management Limited (“PanOcean”) (5) - - 5,250,000,000 70.00 

Ananda Krishnan Tatparanandam (“TAK”) (6) - - 5,250,000,000 70.00 

Harapan Nusantara Sdn Bhd (”Harapan Nusantara”) (7) - - 5,250,000,000 70.00 

Tun Haji Mohammed Hanif bin Omar (8) - - 5,250,000,000 70.00 

Dato’ Haji Badri bin Haji Masri (8) - - 5,250,000,000 70.00 

Mohamad Shahrin bin Merican (8) 11,000 * 5,250,000,000 70.00 

STC Malaysia Holding Ltd (“STCM”) (9) - - 5,250,000,000 70.00 

STC Asia Telecom Holding Ltd (“STCAT”) (10) - - 5,250,000,000 70.00 

Saudi Telecom Company (“Saudi Telecom”) (11) - - 5,250,000,000 70.00 

Public Investment Fund (“PIF”) (12) - - 5,250,000,000 70.00 

Employees Provident Fund Board (“EPF”) 367,560,700 4.90 11,047,000 (13) 0.15 

Notes: 

* Negligible 

(1) BGSM’s deemed interest in the Shares arises by virtue of its direct equity interests of 100% in MCB. 

(2) UTE’s deemed interest in the Shares arises by virtue of its direct equity interest of 100% in each of Wilayah Bintang Sdn Bhd, Tegas Mahsuri Sdn Bhd, Besitang (M) 

Sdn Bhd and Besitang Utara Sdn Bhd which in turn wholly-own Wilayah Resources Sdn Bhd, Tegas Puri Sdn Bhd, Besitang Barat Sdn Bhd and Besitang Selatan Sdn 

Bhd (collectively, “UT Subsidiaries”) respectively. The UT Subsidiaries hold in aggregate 37% direct equity interest in BGSM, and therefore via such aggregate interest, 

UTE has a deemed interest over all the Shares held by MCB. See Note (1) above for BGSM’s interest in the Shares. 

(3) Usaha Tegas is deemed to have an interest in all of the Shares in which UTE has an interest, by virtue of Usaha Tegas being entitled to exercise 100% of the votes 

attached to the voting shares of UTE. See Note (2) above for UTE’s interest in the Shares. 

(4) PSIL is deemed to have an interest in all of the Shares in which Usaha Tegas has an interest, by virtue of PSIL being entitled to exercise 99.999% of the votes attached 

to the voting shares of Usaha Tegas. See Note (3) above for Usaha Tegas’ interest in the Shares. 

(5) The shares in PSIL are held by Excorp which is in turn held by PanOcean. See Note (4) above for PSIL’s interest in the Shares. PanOcean is the trustee of a discretionary 

trust, the beneficiaries of which are members of the family of TAK and foundations including those for charitable purposes. Although PanOcean and TAK are 

deemed to have an interest in the Shares in which PSIL has an interest, they do not have any economic or beneficial interest over such shares, as such interest is held 

subject to the terms of the discretionary trust.

MAXIS BERHAD 


247 

(6) TAK is deemed to have an interest in the Shares by virtue of: 

a. his deemed interest in PanOcean. See Note (5) above for PanOcean’s deemed interest in the Shares; 

b. his controlling interest in Eridanes International N.V. (“EINV”), the immediate holding company of East Asia Telecommunications Ltd (“EAT”), Global Multimedia 

Technologies (BVI) Ltd (“GMT”) and Worldwide Communications Technologies Ltd (“WCT”) which in turn collectively own Maxis Holdings Sdn Bhd (“MHSB”). 

EINV has a 53.50% equity interest in Shield Estate N.V. (“SENV”) via MHSB; 

c. his controlling interest in MAI Holdings Sdn Bhd (“MAIH”), the immediate holding company of Pacific Fortune Sdn Bhd which in turn has a direct equity 

interest of 100% in each of Ria Utama Sdn Bhd (“RUSB”) and Tetap Emas Sdn Bhd (“TESB”) respectively. MAIH has a 34.27% equity interest in SENV via RUSB 

and TESB; and 

d. his controlling interest in MAI Sdn Berhad (“MAI”), the immediate holding company of Terang Equity Sdn Bhd, which in turn has a direct equity interest of 

100% in Wangi Terang Sdn Bhd (“WTSB”). MAI has a 12.23% equity interest in SENV via WTSB, and SENV has an 8% equity interest in BGSM which in turn 

wholly-owns MCB. MCB owns 70% direct equity interest in the Company. 

(7) Harapan Nusantara is deemed to have an interest in all of the Shares in which Mujur Anggun Sdn Bhd, Cabaran Mujur Sdn Bhd, Anak Samudra Sdn Bhd, Dumai 

Maju Sdn Bhd, Nusantara Makmur Sdn Bhd, Usaha Kenanga Sdn Bhd and Tegas Sari Sdn Bhd (collectively, “Harapan Nusantara Subsidiaries”) have an interest, by 

virtue of Harapan Nusantara being entitled to control the exercise of 100% of the votes attached to the voting shares in each of the Harapan Nusantara Subsidiaries. 

The Harapan Nusantara Subsidiaries hold in aggregate 30% direct equity interest in BGSM and therefore, via such aggregate interest, Harapan Nusantara has a 

deemed interest over all the Shares held by MCB. See Note (1) above for BGSM’s interest in the Shares. 

The Shares held via the Harapan Nusantara Subsidiaries are held under discretionary trusts for Bumiputera objects. As such, Harapan Nusantara does not have any 

economic interest in the Shares via the Harapan Nusantara Subsidiaries, as such interest is held subject to the terms of the discretionary trusts for Bumiputera objects. 

(8) Deemed to have an interest in the Shares in which Harapan Nusantara has an interest, by virtue of his 25% direct equity interest in Harapan Nusantara. However, he 

does not have any economic interest in the Shares held via the Harapan Nusantara Subsidiaries as such interest is held subject to the terms of the discretionary trusts 

for Bumiputera objects. See Note (7) above for the Harapan Nusantara’s interest in the Shares. 

(9) STCM is deemed to have an interest in the Shares by virtue of its direct 25% equity interest in BGSM. See Note (1) above for BGSM’s interest in the Shares. 

(10) STCAT is deemed to have an interest in all of the Shares in which STCM has an interest, by virtue of its direct 100% equity interest in STCM. See Note (9) above for 

STCM’s interest in the Shares. 

(11) Saudi Telecom is deemed to have an interest in all of the Shares in which STCAT has an interest, by virtue of its direct 100% equity interest in STCAT. See Note (10) 

above for STCAT’s interest in the Shares. 

(12) PIF is deemed to have an interest in all of the Shares in which Saudi Telecom has an interest, by virtue of its direct 70% equity interest in Saudi Telecom. See Note 

(11) above for Saudi Telecom’s interest in the Shares. 

(13) The EPF is deemed to have an interest in 11,047,000 Shares held through nominees.

248 


LIST OF PROPERTIES 

HELD BY MAXIS BERHAD 

As At 31 December 2011 

REMAINING 

NET BOOK 

APPROXIMATE TENURE/ LEASE PERIOD LAND BUILD-UP VALUE AS AT 

AGE OF DATE OF (EXPIRY CURRENT AREA AREA 31 DECEMBER 

ITEM POSTAL ADDRESS BUILDING ACQUISITION OF LEASE) USE (SQ METRE) (SQ METRE) 2011 (RM’000) 

1 Plot 12155 (Lot 13) 16 years Freehold - Telecommunications 11,235 10,061 22,180 

Jalan Delima 1/1 9 May 1994 operations 

Subang Hi - Tech Industrial Park 

centre and office 

40000 Shah Alam 

Selangor 

2 Lot 4059, Jalan Riang 20 19 years Freehold - Telecommunications 2,201 2,531 5,038 

Taman Gembira Industrial Estate 21 July 1994 operations 

81100 Johor Bahru centre and office 

Lot 4046, Jalan Riang 20 Freehold Telecommunications 2,041 1,546 

Taman Gembira Industrial Estate 21 July 1994 operations 

81100 Johor Bahru centre and office 

3 Lot 2537 & 2538,Lorong Jelawat 6 15 years Leasehold 62 years Telecommunications 3,661 2,259 6,593 

Kawasan Perusahan Seberang Jaya 5 January (18 August operations 

13700 Seberang Jaya 1995 2073) centre and office 

Penang 

4 PT 31093, Taman Perindustrian Tago 14 years Freehold - Central 2,830 3,290 2,654 

Jalan KL - Sg Buluh 2 July 1996 technical 

Mukim Batu, Gombak 

office 

5 No 1, Taman Perindustrial Subang 17 years Freehold - Warehouse 17,721 1,886 8,479 

(Lion Industrial Park), Seksyen 22 

24 October 

40000 Shah Alam 1995 

Selangor 

6 Lot 943 & 1289 14 years Freehold - Central 10,611 1,535 3,367 

(No Lot Pemaju - 46) 12 April technical 

Rawang Integrated Industrial Park 1997 office 

Selangor 

7 8101, Taman Desa Jasmin 14 years Freehold - Central 2,378 1,736 1,355 

Block 12B, Bandar Baru Nilai 28 December technical 

Labu 1996 office 

Negeri Sembilan

MAXIS BERHAD 


249 

REMAINING 

NET BOOK 

APPROXIMATE TENURE/ LEASE PERIOD LAND BUILD-UP VALUE AS AT 

AGE OF DATE OF (EXPIRY CURRENT AREA AREA 31 DECEMBER 

ITEM POSTAL ADDRESS BUILDING ACQUISITION OF LEASE) USE (SQ METRE) (SQ METRE) 2011 (RM’000) 

8 Lot 25, Lorong Burung Keleto 11 years Leasehold 85 years Telecommunications 16,149 3,372 9,624 

Inanam Ind. Estate, Inanam 11 May (31 December operation 

88450 Kota Kinabalu 2000 2096) centre and office 

Sabah 

9 Lot 2323, Off Jalan Daya 11 years Leasehold 31 years Telecommunications 10,122 3,382 19,165 

Pending Industrial Estate, Bintawa 28 September (17 February operation 

93450 Kuching 2000 2042) centre and office 

Sarawak 

10 Lot 11301, Jalan Lebuhraya 12 years Sub-Lease 14 years Telecommunications 11,592 5,634 16,821 

Kuala Lumpur - Seremban 9 August (28 July 2025) operation 

Batu 8, Mukim Petaling 1999 centre and office 


11 No 26, Jalan Perdagangan 10 17 years Freehold - BTS 2,294 409 1,103 

Taman Universiti 

2 March 

81300 Skudai 1995 

Johor

250 


DISCLOSURE OF RECURRENT 

RELATED PARTY TRANSACTIONS 

At an Extraordinary General Meeting held on 31 May 2011, the Company obtained a mandate from its shareholders (Shareholders’ 

Mandate) for recurrent related party transactions (RRPTs) of a revenue or trading nature. 

Under the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, such Shareholders’ Mandate is subject to the 

disclosure in the Annual Report of RRPTs conducted pursuant to the mandate during the financial year ended 31 December 2011 

where the aggregate value of such RRPTs is equal to or more than RM1 million or 1% of the relevant percentage ratio for such 

transactions, whichever is the higher. 

Set out below are all the RRPTs for which Shareholders’ Mandate had been obtained together with a breakdown of the aggregate 

value of the RRPTs which had been conducted pursuant to the Shareholders’ Mandate. To facilitate reference, mandated RRPTs which 

had not been conducted in 2011 or where aggregate values had been below the prescribed thresholds have also been included. 

COMPANY 

AGGREGATE 

IN THE VALUE INCURRED VALUE INCURRED VALUE 

MAXIS FROM FROM OF TRANSACTIONS 

GROUP TRANSACTING NATURE OF INTERESTED NATURE OF 1 JANUARY 2011 31 MAY 2011 TO DURING THE 

NO INVOLVED PARTIES TRANSACTION RELATED PARTIES RELATIONSHIP TO 30 MAY 2011 31 DECEMBER 2011 FINANCIAL YEAR 

(RM’000) (RM’000) (RM’000) 

1 Maxis Mobile Airtime Provision of Major Shareholders Please refer 66 26 92 

Services Management services and Usaha Tegas Sdn Bhd to Note 1 

Sdn Bhd and Programming content to (UTSB), Pacific States 

(MMSSB) Sdn Bhd (AMP) MMSSB to Investment Limited 

provide premium (PSIL), Excorp 

SMS/WAP/MMS Holdings N.V. (Excorp), 

content to Maxis PanOcean Management 

subscribers Limited (PanOcean), 

Ananda Krishnan 

Tatparanandam (TAK), 

Tun Dr Haji Mohammed 

Hanif bin Omar (THO), 

Dato’ Haji Badri bin Haji 

Masri (Dato’ Badri) 

and Mohamad Shahrin 

bin Merican (MSM) 

Director 

Augustus Ralph 

Marshall (ARM) 

2 MMSSB AMP Provision of voice Major Shareholders Please refer Nil Nil Nil 

contents for voice UTSB, PSIL, Excorp, to Note 1 

portal services PanOcean, TAK, THO, 

to MMSSB Dato’ Badri and MSM 

Director 

ARM

MAXIS BERHAD 


251 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

3 MMSSB Digital Five Provision of Major Shareholders Please refer Nil NA Nil 

Sdn Bhd (DFSB) external content UTSB, PSIL, Excorp, to Note 1 

provider 

PanOcean, TAK, 

aggregator services THO, Dato’ Badri 

to MMSSB which and MSM 

enables premium 

SMS/WAP/MMS/ Director 

CRT/3G content ARM 

to Maxis subscribers 

by linking their 

content server to 

Maxis – SMSC, 

WAP gateway, 

MMSC and E-STK 

4 MMSSB DFSB Provision of services Major Shareholders Please refer 1,072 Nil 1,072 

and content to UTSB, PSIL, Excorp, to Note 1 

MMSSB to promote PanOcean, TAK, 

services via 

THO, Dato’ Badri 

SMS/WAP/MMS and MSM 

Director 

ARM 

5 MMSSB DFSB Provision of use of Major Shareholders Please refer 21 NA 21 

WAP-STK platform UTSB, PSIL, Excorp, to Note 1 

that allows 


subscribers to THO, Dato’ Badri 

request/send services/ and MSM 

contents via SMS 

and/or acquisition Director 

of technology by ARM 

MMSSB 

6 MMSSB DFSB Provision of Electronic Major Shareholders Please refer 208 NA 208 

Bill Presentment and UTSB, PSIL, Excorp, to Note 1 

payment services PanOcean, TAK, 

(including 


enhancements) and MSM 

to MMSSB 

Director 

ARM

252 




Continued 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

7 Maxis Mobile MEASAT Broadcast Rental payable on Major Shareholders Please refer Nil Nil Nil 

Sdn Bhd Network Systems monthly basis to UTSB, PSIL, Excorp, to Note 1 

(MMSB) Sdn Bhd (MBNS) MMSB for usage of PanOcean, TAK, 

Maxis’ contact THO, Dato’ Badri 

centre located at and MSM 

Menara Sunway as 

MBNS’ backup Director 

call centre 

ARM 

8 Maxis MBNS Provision of 1300 Major Shareholders Please refer 1,811 3,046 4,857 

Broadband Inbound telephony UTSB, PSIL, Excorp, to Note 1 

Sdn Bhd solutions by MBSB PanOcean, TAK, 

(MBSB) 


and MSM 

Director 

ARM 

9 MBSB MBNS Provision of Major Shareholders Please refer 9,452 12,431 21,883 

managed UTSB, PSIL, Excorp, to Note 1 

communication PanOcean, TAK, 

services by MBSB THO, Dato’ Badri 

and MSM 

Director 

ARM 

10 MBSB MBNS, DFSB and Provision of VSAT Major Shareholders Please refer Nil 60 60 

Astro Holdings services by MBSB UTSB, PSIL, Excorp, to Note 1 

Sdn Bhd 


(AHSB)’s 


affiliates 

and MSM 

Director 

ARM 

11 MBSB MBNS and AHSB’s Provision of secured Major Shareholders Please refer 240 191 431 

affiliates location and internet UTSB, PSIL, Excorp, to Note 1 

bandwidth by MBSB PanOcean, TAK, 

for MBNS’ online THO, Dato’ Badri 

business and and MSM 

solution needs 

Director 

ARM

MAXIS BERHAD 


253 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

12 MMSSB MBNS Provision of services Major Shareholders Please refer Nil Nil Nil 


MMSSB to provide PanOcean, TAK, 

premium SMS/WAP/ THO, Dato’ Badri 

MMS content to and MSM 

Maxis subscribers 

Director 

ARM 

13 MMSSB MBNS Sponsorship of Major Shareholders Please refer Nil Nil Nil 

golf tournament UTSB, PSIL, Excorp, to Note 1 

organised by PanOcean, TAK, 

MMSSB 


and MSM 

Director 

ARM 

14 MMSSB MBNS Purchase of services Major Shareholders Please refer 3,403 NA 3,403 

by MMSSB - UTSB, PSIL, Excorp, to Note 1 

development of PanOcean, TAK, 

video streaming THO, Dato’ Badri 

services across 2.5G and MSM 

and 3G Network 

including platform/ Director 

hosting fee, video ARM 

content fee and 

production fee 

15 MBSB MBNS, DFSB, AMP Provision of leased Major Shareholders Please refer 2,629 2,917 5,546 

and AHSB’s circuits/DIA/ UTSB, PSIL, Excorp, to Note 1 

affiliates Metro-E by MBSB PanOcean, TAK, 


and MSM 

Director 

ARM

254 




Continued 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

16 MMSSB Astro Provision of services Major Shareholders Please refer 278 587 865 

Entertainment and content to UTSB, PSIL, Excorp, to Note 1 

Sdn Bhd (AESB) MMSSB to provide PanOcean, TAK, 




Director 

ARM 

17 MBSB Kristal-Astro Provision of VSAT Major Shareholders Please refer 48 69 117 

Sdn Bhd (KASB) services and IPLC UTSB, PSIL, Excorp, to Note 1 

solution by MBSB PanOcean, TAK, 


and MSM 

Director 

ARM 

18 MMSSB Maestro Talent Provision of services Major Shareholders Please refer 2 NA 2 

and Management and content to UTSB, PSIL, Excorp, to Note 1 

Sdn Bhd MMSSB to provide PanOcean, TAK, 

(Maestro) premium SMS/WAP/ THO, Dato’ Badri 



Director 

ARM 

19 MBSB MBNS, AHSB Provision of Major Shareholders Please refer 760 782 1,542 

and/or its affiliates bandwidth solutions UTSB, PSIL, Excorp, to Note 1 

by MBSB 



and MSM 

Director 

ARM 

20 MMSSB MBNS Sponsorship of Major Shareholders Please refer 9,243 NA 9,243 

events organised/ UTSB, PSIL, Excorp, to Note 1 

aired by MBNS PanOcean, TAK, 


and MSM 

Director 

ARM

MAXIS BERHAD 


255 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

21 MMSSB MBNS Provision of mobile Major Shareholders Please refer 3,961 NA 3,961 

and online content UTSB, PSIL, Excorp, to Note 1 

and related services PanOcean, TAK, 

by MBNS 


and MSM 

Director 

ARM 

22 MMSSB MBNS Provision of external Major Shareholders Please refer NA 417 417 

content provider UTSB, PSIL, Excorp, to Note 1 

aggregator services PanOcean, TAK, 

to MBNS to enable THO, Dato’ Badri 

direct transmission and MSM 

of premium content 

Director 

ARM 

23 MBSB MBNS, AHSB Provision of Maxis IP Major Shareholders Please refer NA Nil Nil 

and/or its affiliates Contact Centre UTSB, PSIL, Excorp, to Note 1 

Services by MBSB PanOcean, TAK, 


and MSM 

Director 

ARM 

24 MMSSB MBNS Provision of services Major Shareholders Please refer NA 349 349 



mobile TV content THO, Dato’ Badri 

to Maxis subscribers and MSM 

Director 

ARM 

25 MMSSB DFSB Provision of services Major Shareholders Please refer NA 5,888 5,888 






Director 

ARM

256 




Continued 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

26 MMSSB DFSB Provision of services Major Shareholders Please refer NA 9,399 9,399 

to MMSSB to UTSB, PSIL, Excorp, to Note 1 

(i) exclusively PanOcean, TAK, 

aggregate, publish THO, Dato’ Badri 

and resell ad space and MSM 

across Maxis’ 

Internet and IPTV Director 

properties and (ii) ARM 

non-exclusively 

aggregate, publish, 

and resell ad space 

across Maxis’ 

Mobile’ properties 

27 MMSSB AESB Personality Major Shareholders Please refer NA 82 82 

Endorsement UTSB, PSIL, Excorp, to Note 1 

Arrangement PanOcean, TAK, 

provided by AESB THO, Dato’ Badri 

and MSM 

Director 

ARM 

28 MBSB MBNS Provision of IPTV Major Shareholders Please refer NA Nil Nil 

services by MBNS UTSB, PSIL, Excorp, to Note 1 



and MSM 

Director 

ARM 

Aggregate Value of Transactions with AHSB Group and its affiliates 33,194 36,244 69,438 

29 MMSB Tanjong City Rental of signage Major Shareholders Please refer 325 455 780 

Centre Property space at both sides UTSB, PSIL, Excorp, to Note 2 

Management of the facade of PanOcean, TAK 

Sdn Bhd Menara Maxis by and MSM 

(TCCPM) 

MMSB and Maxis’ 

naming rights to Directors 

the building payable Asgari bin Mohd Fuad 

on monthly basis Stephens (Asgari), 

ARM and Chan 

Chee Beng (CCB)

MAXIS BERHAD 


257 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

30 MMSB TCCPM Rental and service Major Shareholders Please refer 560 783 1,343 

charge payable on UTSB, PSIL, Excorp, to Note 2 

monthly basis by PanOcean, TAK 

MMSB for 

and MSM 

approximately 

16,000 sq ft at Directors 

Levels 24 and 25, Asgari, ARM and 

Menara Maxis CCB 

31 MMSB TCCPM Rental and service Major Shareholders Please refer 16,583 16,144 32,727 


monthly basis by PanOcean, TAK 

MMSB for 

and MSM 

approximately 


Levels 8 and 10 to Asgari, ARM and 

23, Menara Maxis CCB 

32 MMSB TCCPM Rental and service Major Shareholders Please refer 906 1,057 1,963 


monthly basis by PanOcean, TAK and 

MMSB for 

MSM 

approximately 


Ground Floor, Asgari, ARM and 

Menara Maxis CCB 

33 MMSSB TGV Cinema Provision of e-money Major Shareholders Please refer Nil Nil Nil 

Sdn Bhd (TGV) service by MMSSB UTSB, PSIL, Excorp, to Note 2 

that allows Maxis PanOcean, TAK and 

customers to make MSM 

payment for TGV 

cinema tickets via Directors 

mobile phones Asgari, ARM and CCB 

34 MMSSB TGV Provision of mobile Major Shareholders Please refer Nil Nil Nil 

payment solutions UTSB, PSIL, Excorp, to Note 2 

to MMSSB 

PanOcean, TAK and 

MSM 

Directors 

Asgari, ARM and CCB

258 




Continued 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

35 MMSSB TGV 3-dimensional (3D) Major Shareholders Please refer Nil NA Nil 

equipment UTSB, PSIL, Excorp, to Note 2 

sponsorship by PanOcean, TAK and 

MMSSB 

MSM 

Directors 

Asgari, ARM and CCB 

36 MMSSB TGV Purchase of movie Major Shareholders Please refer 181 585 766 

tickets by MMSSB – UTSB, PSIL, Excorp, to Note 2 

subsidised for high PanOcean, TAK and 

value Maxis One MSM 

Club customers 

Directors 


37 MMSSB Pan Malaysian Provision of e-money Major Shareholders Please refer Nil Nil Nil 

Pools Sdn Bhd service by MMSSB UTSB, PSIL, Excorp, to Note 2 

(PMP) that allows Maxis PanOcean, TAK and 

customers to make MSM 

payment for PMP’s 

services (i.e. top-up Directors 

of PMP credits) via Asgari, ARM and CCB 

mobile phones 

38 MBSB PMP and/or Provision of leased Major Shareholders Please refer Nil 48 48 

its affiliates circuits by MBSB UTSB, PSIL, Excorp, to Note 2 

PanOcean, TAK and 

MSM 

Directors 


39 Maxis and/or PMP and/or Provision of mobile Major Shareholders Please refer Nil Nil Nil 

its affiliates its affiliates wireless solutions UTSB, PSIL, Excorp, to Note 2 

by Maxis and/or PanOcean, TAK and 

its affiliates MSM 

Directors 


40 MBSB PMP and/or Provision of secured Major Shareholders Please refer Nil Nil Nil 

its affiliates location and internet UTSB, PSIL, Excorp, to Note 2 

bandwidth by MBSB PanOcean, TAK and 

for PMP and/or its MSM 

affiliates’ online 

business and Directors 

solution needs Asgari, ARM and CCB

MAXIS BERHAD 


259 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

41 MBSB Tanjong and/or Provision of leased Major Shareholders Please refer 1 Nil 1 

its affiliates line services/DIA/ UTSB, PSIL, Excorp, to Note 2 

Metro-E/MPLS PanOcean, TAK and 

by MBSB 

MSM 

Directors 


42 MMSSB TGV Provision of a mobile Major Shareholders Please refer NA Nil Nil 

cinema ticketing UTSB, PSIL, Excorp, to Note 2 

service by MMSSB PanOcean, TAK and 

that allows Maxis MSM 

customers to book 

TGV cinema tickets Directors 

via smart phone Asgari, ARM and CCB 

applications and 

mobile internet 

43 MMSB TCCPM Rental and service Major Shareholders Please refer NA Nil Nil 


monthly basis by PanOcean, TAK and 

MMSB for additional MSM 

space at Menara 

Maxis (Levels 3 and Directors 

4) and also small Asgari, ARM and CCB 

space at the 

basement for 

storage purposes 

44 MMSSB and TGV Marketing joint- Major Shareholders Please refer NA Nil Nil 

its affiliates promotion campaign UTSB, PSIL, Excorp, to Note 2 

between MMSSB PanOcean, TAK and 

and its affiliates MSM 

and TGV 

Directors 


Aggregate Value of Transaction with Tanjong Group and its affiliates 18,556 19,072 37,628 

45 MBSB MEASAT Satellite Rental of assets – Major Shareholders Please refer 6,446 9,930 16,376 

Systems Sdn Bhd Transponder lease TAK and THO to Note 3 

(MSS) 

rentals payable on 

quarterly basis Directors 

by MBSB 

ARM and CCB

260 




Continued 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

46 MBSB MSS Rental of assets – Major Shareholders Please refer 235 180 415 

Lease rentals of TAK and THO to Note 3 

NSS Ku Band earth 

station facility Directors 

payable on monthly ARM and CCB 

basis by MBSB 

47 MBSB MSS Rental of premises – Major Shareholders Please refer 12 16 28 

Rental payable on TAK and THO to Note 3 

monthly basis by 

MBSB for BTS site 

Directors 

ARM and CCB 

48 MBSB MSS Rental of assets – Major Shareholders Please refer 394 560 954 

Lease rentals of TAK and THO to Note 3 

MSS’ teleport 

facility payable on Directors 

quarterly basis by ARM and CCB 

MBSB 

49 MBSB MSS Participation in IP Major Shareholders Please refer 383 561 944 

Transit Project TAK and THO to Note 3 

between MBSB and 

MSS where MBSB Directors 

provides internet ARM and CCB 

bandwidth pipe to 

MSS for MSS’ 

customers 

50 MBSB MSS Provision of Major Shareholders Please refer Nil 14 14 

bandwidth solutions TAK and THO to Note 3 

by MBSB 

Directors 

ARM and CCB 

51 MBSB MSS Rental of assets – Major Shareholders Please refer Nil NA Nil 

Transponder (Global TAK and THO to Note 3 

Beam) lease rentals 

for satellite services Directors 

payable on quarterly ARM and CCB 

basis by MBSB

MAXIS BERHAD 


261 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

52 MBSB MSS Provision of leased Major Shareholders Please refer 13 33 46 

line services/DIA/ TAK and THO to Note 3 

Metro-E or any 

related IP solutions Directors 

by MBSB 

ARM and CCB 

53 MBSB MEASAT Global Provision of leased Major Shareholders Please refer Nil Nil Nil 

Berhad (MGB) circuits by MBSB TAK and THO to Note 3 

and/or its affiliates 

Directors 

ARM and CCB 

54 MBSB MEASAT Networks Rental of assets – Major Shareholders Please refer NA 2,566 2,566 

Limited (MNL) Transponder (IPstar) TAK and THO to Note 3 

and/or MGB’s lease rentals payable 

affiliates on quarterly basis Directors 

by MBSB 

ARM and CCB 

Aggregate Value of Transactions with MGB Group and its affiliates 7,483 13,860 21,343 

55 MMSB and/or UT Hospitality Provision of food Major Shareholders Please refer 29 55 84 

its affiliates Services Sdn Bhd and beverage UTSB, PSIL, Excorp, to Note 4 

(UTHSB) services at Level 24 PanOcean, TAK and 

to MMSB and/or MSM 

its affiliates and 

rental of space at Directors 

Level 24 and ARM and CCB 

auditorium at 

Level 25, Menara 

Maxis for internal 

and external 

briefings and 

promotions by 

MMSB and/or 

its affiliates

262 




Continued 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

56 MBSB UTSB, Provision of Major Shareholders Please refer Nil 610 610 

UTSB Management business voice UTSB, PSIL, Excorp, to Note 4 

Sdn Bhd services by MBSB PanOcean, TAK and 

(UTSBM), UT 

MSM 

Projects Sdn Bhd 

(UTP), UT 

Directors 

Energy Services 

ARM and CCB 

Sdn Bhd 

(UTESSB) and/or 

its affiliates 

57 MMSB and/or UTHSB Provision of facilities Major Shareholders Please refer Nil Nil Nil 

its affiliates and amenities at UTSB, PSIL, Excorp, to Note 4 

Levels 24 and 25, PanOcean, TAK and 

Menara Maxis to MSM 

MMSB 

Directors 

ARM and CCB 

58 MBSB UTSB and/or Provision of Major Shareholders Please refer 387 Nil 387 

its affiliates equipment and UTSB, PSIL, Excorp, to Note 4 

business voice PanOcean, TAK and 

value-added MSM 

services by MBSB 

Directors 

ARM and CCB 

59 MMSB UTSBM and/or Engagement of Major Shareholders Please refer 11,042 15,458 26,500 

its affiliates UTSBM and/or its UTSB, PSIL, Excorp, to Note 4 

affiliates to provide PanOcean, TAK and 

corporate 

MSM 

management 

services 

Directors 

ARM and CCB 

60 MBSB UTSBM Provision of leased Major Shareholders Please refer 113 157 270 

circuits/DIA and UTSB, PSIL, Excorp, to Note 4 

Metro-E by MBSB PanOcean, TAK and 

MSM 

Directors 

ARM and CCB

MAXIS BERHAD 


263 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

61 MMSSB SRG Asia Pacific Purchase of services Major Shareholders Please refer 10,149 13,150 23,299 

Sdn Bhd – the provision of UTSB, PSIL, Excorp, to Note 4 

(SRGAP) call handling and PanOcean, TAK and 

other tele-marketing MSM 

services to MMSSB 

Directors 

ARM and CCB 

62 MBSB SRGAP Provision of leased Major Shareholders Please refer 99 315 414 

line services/DIA UTSB, PSIL, Excorp, to Note 4 

and Metro-E PanOcean, TAK and 

by MBSB 

MSM 

Directors 

ARM and CCB 

63 Maxis and/or SRGAP Provision of mobility Major Shareholders Please refer Nil Nil Nil 

its affiliates services – SMS/ UTSB, PSIL, Excorp, to Note 4 

Enterprise SMS by PanOcean, TAK and 

Maxis and/or its MSM 

affiliates 

Directors 

ARM and CCB 

64 MBSB SRGAP Provision of 1300 Major Shareholders Please refer 94 42 136 

toll-free and call UTSB, PSIL, Excorp, to Note 4 

centre project PanOcean, TAK and 

by MBSB 

MSM 

Directors 

ARM and CCB 

65 MBSB SRGAP Provision of Maxis Major Shareholders Please refer Nil 948 948 

IP Contact Centre UTSB, PSIL, Excorp, to Note 4 

Services by MBSB PanOcean, TAK and 

MSM 

Directors 

ARM and CCB

264 




Continued 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

66 Maxis and/or Bumi Armada Provision by Maxis Major Shareholders Please refer 

its affiliates Berhad (BAB) and/or its affiliates of: UTSB, PSIL, Excorp, to Note 5 

- VSAT services PanOcean and TAK Nil Nil Nil 

- Internet and email 

infrastructure Director Nil Nil Nil 

- 8Mbps Metro-E CCB Nil Nil Nil 

67 MBSB BAB and/or its Provision of leased Major Shareholders Please refer Nil 58 58 

affiliates line services/DIA/ UTSB, PSIL, Excorp, to Note 5 

Metro-E by MBSB PanOcean and TAK 

Director 

CCB 

68 Maxis Mobitel (Private) • Interconnect Major Shareholders Please refer 41 23 64 

International Limited revenue to MISB UTSB, PSIL, Excorp, to Note 6 

Sdn Bhd (Mobitel) PanOcean and TAK 

(MISB) • Interconnect 436 64 500 

expenses paid Directors 

by MISB 

CCB and 

Sundip Das (SD) 

69 MMSSB Mobitel • Roaming partner Major Shareholders Please refer 51 Nil 51 

revenue to MMSSB UTSB, PSIL, Excorp, to Note 6 

PanOcean and TAK 

• Roaming partner 158 32 190 

expenses paid by Directors 

MMSSB 

CCB and SD 

70 MISB Sri Lanka Telecom • Interconnect Major Shareholders Please refer 377 42 419 

PLC (SLT) revenue to MISB UTSB, PSIL, Excorp, to Note 6 

PanOcean and TAK 

• Interconnect 101 29 130 

expenses paid by Directors 

MISB 

CCB and SD 

71 MMSB, SRGAP Supply of third Major Shareholders Please refer NA Nil Nil 

MMSSB, MBSB party contract staff UTSB, PSIL, Excorp, to Note 4 

and/or MISB by SRGAP PanOcean and TAK 

and MSM 

Directors 

ARM and CCB

MAXIS BERHAD 


265 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

Aggregate Value of Transactions with UTSB Group and its affiliates 23,077 30,983 54,060 

72 MMSB UMTS (Malaysia) Provision of Major Shareholders Please refer 705 960 1,665 

Sdn Bhd corporate support UTSB, PSIL, Excorp, to Note 7 

(UMTS) services by MMSB. PanOcean, TAK, 

Corporate support THO, Dato’ Badri 

services include and MSM 

services such as 

support functions 

for accounting, Directors 

regulatory, taxation, Dr Fahad Hussain 

company secretarial S. Mushayt 

and human (Dr Fahad), ARM, 

resources matters, CCB, SD and Nasution 

rental of office bin Mohamed 

space, stationery and (NM) 

printing costs, 

repair and maintenance 

of office furniture 

& fittings, cleaning 

services for office 

buildings and rental 

of IT equipment 

73 MBSB UMTS Provision by MBSB Major Shareholders Please refer 11,248 18,789 30,037 

as the mobile UTSB, PSIL, Excorp, to Note 7 

network operator PanOcean, TAK, 

to design, procure, THO, Dato’ Badri 

build and operate a and MSM 

3G network as per 

the service level Directors 

agreement between Dr Fahad, ARM, 

MBSB and UMTS CCB, SD and NM 

Aggregate Value of Transactions with UMTS, a 75% subsidiary of Maxis 11,953 19,749 31,702

266 




Continued 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

74 MMSB Maxis Provision of Major Shareholders Please refer 1,250 1,750 3,000 

Communications corporate services MCB, Binariang to Note 8 

Berhad (MCB) by MMSB. GSM Sdn Bhd 

Corporate support (BGSM), Usaha 

services include Tegas Equity Sdn Bhd 

support 

(UTES), UTSB, PSIL, 

functions for Excorp, PanOcean, 

accounting, TAK, Harapan 

regulatory, taxation, Nusantara Sdn Bhd 

company secretarial (HNSB), THO, Dato’ 

and human resource Badri, MSM, STC 

matters, rental of Malaysia Holding Ltd 

office space, (STCM), STC Asia 

stationery & printing Telecom Holding Ltd 

costs, repair and (STCAT), STC and 

maintenance of Public Investment 

office furniture and Fund (PIF) 

fittings, cleaning 

services for office Directors 

buildings and rental Ghassan Hasbani 

of IT equipment (GH), Dr Zeyad 

Thamer H. AlEtaibi 

(Dr Zeyad), 

Dr Fahad, ARM, 

CCB and SD 

75 MISB Dishnet Wireless • Interconnect Major Shareholders Please refer 12,946 727 13,673 

Limited (DWL) revenue to MISB MCB, BGSM, UTES, to Note 9 

and/or Aircel 

UTSB, PSIL, Excorp, 

Limited (Aircel) • Interconnect PanOcean, TAK, 13,373 758 14,131 

Group expenses paid HNSB, THO, Dato’ 

by MISB 

Badri, MSM, STCM, 

STCAT, STC and PIF 

Directors 

Dr Fahad, CCB and SD

MAXIS BERHAD 


267 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

76 MMSSB DWL • Roaming partner Major Shareholders Please refer 2 2 4 

revenue to MMSSB MCB, BGSM, UTES, to Note 9 


• Roaming partner PanOcean, TAK, 8 12 20 

expenses paid by HNSB, THO, Dato’ 

MMSSB 



Directors 

Dr Fahad, CCB and SD 

77 MMSSB Aircel and/or • Roaming partner Major Shareholders Please refer 39 63 102 

its affiliates revenue to MMSSB MCB, BGSM, UTES, to Note 9 


• Roaming partner PanOcean, TAK, 91 129 220 

expenses paid by HNSB, THO, Dato’ 

MMSSB 



Directors 

Dr Fahad, CCB and SD 

78 MMSSB Bridge Mobile • Regional bid Major Shareholders Please refer Nil 8 8 

Pte Ltd (Bridge coordination MCB, BGSM, UTES, to Note 10 

Mobile) services to MMSSB UTSB, PSIL, Excorp, 

whereby Bridge PanOcean, TAK, 

Mobile acts as a HNSB, THO, Dato’ 

single point of Badri, MSM, STCM, 

contact and STCAT, STC and PIF 

coordinator to 

provide competitive Director 

bid/business SD 

offerings to 

corporations within 

the region that 

requires 

telecommunications 

services 

• Preferred roaming 247 580 827 

services to MMSSB

268 




Continued 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

79 MMSSB Bridge Mobile • Traffic steering Major Shareholders Please refer NA 172 172 

services to MCB, BGSM, UTES, to Note 10 

MMSSB 



• Membership fee HNSB, THO, Dato’ NA 451 451 



Director 

SD 

Aggregate Value of Transaction with MCB Group and its affiliates 27,956 4,652 32,608 

80 MMSSB Saudi Telecom • Roaming Partner Major Shareholder Please refer 1,249 3,677 4,926 

Company (STC) income to MMSSB STC to Note 11 

• Roaming Partner Directors 488 745 1,233 

expenses paid by GH, Dr Zeyad 

MMSSB 

and Dr Fahad 

81 MISB STC and/or its • Interconnect Major Shareholder Please refer 4,551 4,558 9,109 

affiliates revenue to MISB STC to Note 11 

• Interconnect Directors 1,488 1,328 2,816 

expenses paid by GH, Dr Zeyad 

MISB 

and Dr Fahad 

82 MMSSB Cell C (Pty) Ltd • Roaming partner Major Shareholder Please refer 5 15 20 

(Cell C) income to MMSSB STC to Note 12 

• Roaming partner Director 42 8 50 

expenses paid by Dr Fahad 

MMSSB 

83 MMSSB Kuwait Telecom • Roaming partner Major Shareholder STC is a Major 7 16 23 

Company (KTC) income to MMSSB STC Shareholder by 

virtue of its 

• Roaming partner Directors deemed equity 10 20 30 

expenses paid by GH and interest of 25% 

MMSSB Dr Zeyad in BGSM 

which in turn 

wholly-owns 

MCB, holds 

26% interest 

in KTC 

Please refer 

to Note 8 and 11 

for the interest 

in Maxis and STC 

of GH and Dr Zeyad 

respectively

MAXIS BERHAD 


269 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

84 MMSSB AVEA İietişim • Roaming partner Major Shareholder Please refer 13 47 60 

Hizmetleri A.Ş. income to MMSSB STC to Note 13 

(AVEA) 

• Roaming partner Directors 158 258 416 

expenses paid by GH and 

MMSSB 

Dr Fahad 

85 MMSSB, SEBIT Egitim ve • Licence fee payable Major Shareholder Please refer NA 4,500 4,500 

MMSB and/or Bilgi Teknolojileri to SEBIT for STC to Note 18 

its affiliates Anonim Sirketi provision of online 

(SEBIT) education service Directors 

to MMSSB GH and 

Dr Fahad 

• Revenue share NA Nil Nil 

entitlement 

payable to SEBIT 

• Provision of NA Nil Nil 

database support 

by SEBIT 

Aggregate Value of Transactions with STC Group and its affiliates 8,011 15,172 23,183

270 




Continued 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

86 MMSSB PT AXIS Telekom • Roaming partner Major Shareholders Please refer 52 74 126 

Indonesia [formerly income to MMSSB MCB, BGSM, UTES, to Note 14 

known as PT 


Natrindo Telepon • Roaming partner PanOcean, TAK, 245 479 724 

Seluler (AXIS)] expenses paid by HNSB, THO, Dato’ 

MMSSB 



Directors 

GH, Dr Zeyad, 

Dr Fahad and CCB 

87 MISB AXIS • Interconnect Major Shareholders Please refer Nil NA Nil 

expenses paid by MCB, BGSM, UTES, to Note 14 

MISB 



HNSB, THO, Dato’ 



Directors 

GH, Dr Zeyad, 

Dr Fahad and CCB 

Aggregate Value of Transaction with AXIS, a company of which STC and MCB, 

both of them Major Shareholders, 

have 80.1% and 14.9% equity interests respectively 297 553 850 

88 MBSB Malaysian Jet Provision of business Major Shareholder Please refer Nil 5 5 

Services Sdn Bhd voice services by TAK to Note 15 

(MJS) 

MBSB 

Aggregate Value of Transactions with a company directly or indirectly 

controlled by or associated with TAK in which he is deemed to have an interest, 

is deemed a Major Shareholder Nil 5 5 

89 MBSB Communications Provision of leased Major Shareholders Please refer Nil Nil Nil 

and Satellite circuits/DIA and TAK and MSM to Note 16 

Services Sdn Bhd Metro-E by MBSB 

(CSS) 

90 MBSB Malaysian Landed BTS rental and Major Shareholders Please refer 13 17 30 

Property Sdn Bhd electricity charges TAK, PanOcean to Note 17 

(MLP) payable on monthly and MSM 

basis by MBSB 

Aggregate Value of Transactions with a company related to certain Major Shareholders 13 17 30

MAXIS BERHAD 


271 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

91 MBSB Strateq Data BTS rental and Director Dato’ Mokhzani, 15 21 36 

Centre Sdn Bhd. electricity charges Dato’ Mokhzani a Director, 

[formerly known payable on quarterly bin Mahathir is also a major 

as Kompakar basis by MBSB (Dato’ Mokhzani) shareholder of 

CRC Sdn Bhd 

SDCSB by having 

(SDCSB)] 

a deemed equity 

interest of 54.7% 

in Strateq 

Sdn Bhd which 

in turn holds 

100% equity 

interest in SDCSB. 

He is also a 

shareholder of 

Maxis by virtue 

of his direct 

equity interest 

of over 750,000 

Shares representing 

0.01% of the 

share capital 

in Maxis held 

personally 

92 MBSB Flobright BTS rental and Director Asgari, a Director, 20 Nil 20 

Advertising Sdn electricity charges Asgari is also a director 

Bhd (FASB) payable on of FASB. He is also 

monthly basis by 

a shareholder of 

MBSB 


of his direct 


over 750,000 

Shares representing 

0.01% of the 

share capital in 

Maxis held through 

a nominee and 

a major shareholder 

of FASB by virtue 

of his deemed 

equity interest of 

50.0% in FASB

272 




Continued 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

93 Maxis and/or Agensi Pekerjaan Provision of Director Asgari, a Nil Nil Nil 

its affiliates Talent2 headhunting, Asgari Director, is 

International Sdn executive search also a director 

Bhd (Talent2) and talent of Talent2. 

mapping services 

He is also a 

to Maxis and/or its 


affiliates 


of his direct 


over 750,000 

Shares 

representing 

0.01% of the 

share capital 


through a 

nominee and 

a major 


Talent2 by 

virtue of his 

deemed equity 

interest of 

30.0% in 

Talent2

MAXIS BERHAD 


273 

COMPANY 

AGGREGATE 





(RM’000) (RM’000) (RM’000) 

94 Maxis and/or Talent2 Provision of Director Asgari, a NA Nil Nil 

its affiliates assessment centres Asgari Director, is 

for General 

also a director 

Managers/Senior 

of Talent2. 

General Managers 

He is also a 

by Talent2 



of his direct 


over 750,000 

Shares 

representing 

0.01% of the 

share capital 


through a 

nominee and 

a major 


Talent2 by 

virtue of his 

deemed equity 

interest of 

30.0% in 

Talent2 

Aggregate Value of Transaction with companies related to certain Directors 35 21 56

274 




Continued 

Information as at 31 December 2011 

Notes: 

(1) 

AHSB GROUP 

DFSB, MBNS, AMP, AESB and Maestro are wholly-owned subsidiaries of Astro Malaysia Holdings Sdn Bhd (AMH) whilst KASB is a 48.9% associated company of AMH. 

AMH is a wholly-owned subsidiary of Astro Networks (Malaysia) Sdn Bhd (ANM) which in turn is wholly-owned by AHSB. 

UTSB, PSIL, Excorp and PanOcean who are Major Shareholders with each having a deemed equity interest over 5,250,000,000 Shares representing 70.0% of the 

issued and paid-up share capital in Maxis in which Binariang GSM Sdn Bhd (BGSM) has an interest, by virtue of their deemed equity interest in BGSM which in turn 

wholly-owns MCB, are also major shareholders of AHSB with each having a deemed equity interest over 479,619,973 ordinary shares of RM0.10 each (AHSB Shares) 

representing 34.01% of the issued and paid-up ordinary share capital in AMH in which AHSB has an interest, by virtue of their deemed interest in AHSB. 

Excorp is 100% owned by PanOcean and it has a 100% direct controlling interest in PSIL, which in turn has a 99.999% direct controlling interest in UTSB. PanOcean is 

the trustee of a discretionary trust, the beneficiaries of which are members of the family of TAK and foundations, including those for charitable purposes. 

TAK who is a Major Shareholder with a deemed equity interest over 5,250,000,000 Shares representing 70.0% of the issued and paid-up share capital in Maxis, is also 

a major shareholder of AHSB with a deemed equity interest over 819,082,908 AHSB Shares representing 58.08% of the issued and paid-up ordinary share capital in 

AHSB. In addition, TAK is also a director of PanOcean, Excorp, PSIL and UTSB. Although TAK and PanOcean are deemed to have interests in the Shares in which PSIL 

has an interest, they do not have any economic or beneficial interest over these Shares as such interest is held subject to the terms of the discretionary trust. 

ARM who is a Director, is also a director of PanOcean, Excorp, PSIL and an executive director of UTSB. He does not have any equity interest in UTSB, in PanOcean, in 

Excorp or in PSIL. In addition, ARM is also a director and group chief executive officer of AHSB, a director and executive deputy chairman of AMH as well as a director of 

MBNS, AMP, AESB and other companies within the AHSB Group. ARM has a direct equity interest over 750,000 Shares representing 0.01% of the issued and paid-up 

share capital in Maxis. ARM does not have any equity interests in MMSSB, MBSB, MMSB nor in the AHSB Group. 

THO, Dato’ Badri and MSM are Major Shareholders with each having a deemed equity interest over 5,250,000,000 Shares representing 70.0% of the issued and paidup 

share capital in Maxis in which BGSM has an interest, by virtue of their respective 25% direct equity interest in Harapan Nusantara Sdn Bhd (Harapan Nusantara). 

Harapan Nusantara’s deemed interest in the voting shares in Maxis in which BGSM has an interest, arises by virtue of Harapan Nusantara being entitled to control the 

exercise of 100% of the votes attached to the voting shares in each of Mujur Anggun Sdn Bhd, Cabaran Mujur Sdn Bhd, Anak Samudra Sdn Bhd, Dumai Maju Sdn 

Bhd, Nusantara Makmur Sdn Bhd, Usaha Kenanga Sdn Bhd and Tegas Sari Sdn Bhd (collectively, Harapan Nusantara Subsidiaries). 

The Harapan Nusantara Subsidiaries hold in aggregate 30% direct equity interest in BGSM and therefore, via such aggregate interest, Harapan Nusantara has a deemed 

interest over all the Shares held by MCB in Maxis. The Maxis Shares held via the Harapan Nusantara Subsidiaries are held under discretionary trusts for Bumiputera 

objects. As such, they do not have any economic interest in those Shares held by the Harapan Nusantara Subsidiaries as such interest is held subject to the terms of the 

discretionary trusts for Bumiputera objects. Further, as THO, Dato’ Badri and MSM exercise or control the exercise of at least 15% of the votes attached to the voting 

shares in Maxis, they are deemed to have an interest in the shares of Maxis’ subsidiaries. 

THO, Dato’ Badri and MSM are major shareholders of AHSB with each having a deemed equity interest over 177,446,535 AHSB Shares representing 12.58% of the issued 

and paid-up share capital in AHSB in which Harapan Terus Sdn Bhd (HTSB) has an interest, by virtue of their respective 25% direct equity interest in HTSB. HTSB is deemed 

to have an interest in the voting shares in AHSB in which Berkat Nusantara Sdn Bhd, Nusantara Cempaka Sdn Bhd, Nusantara Delima Sdn Bhd, Mujur Nusantara Sdn Bhd, 

Gerak Nusantara Sdn Bhd and Sanjung Nusantara Sdn Bhd (collectively, HTSB Subsidiaries) have an interest, by virtue of HTSB being entitled to control the exercise of 100% 

of the votes attached to the voting shares in the immediate holding companies in each of HTSB Subsidiaries viz Nusantara Barat Sdn Bhd, Nusantara Kembang Sdn Bhd, 

Prisma Mutiara Sdn Bhd, Nada Nusantara Sdn Bhd, Cermat Delima Sdn Bhd and Cermat Deras Sdn Bhd respectively.

MAXIS BERHAD 


275 

The HTSB Subsidiaries hold in aggregate 12.58% direct equity interest in AHSB and therefore, via such aggregate interest, HTSB has a deemed interest over all the shares 

held by the HTSB Subsidiaries in AHSB. The AHSB Shares held via the HTSB Subsidiaries are held under discretionary trusts for Bumiputera objects. As such, they do not 

have any economic interest in those shares held by the HTSB Subsidiaries as such interest is held subject to the terms of such discretionary trusts. Further, as THO, Dato’ 

Badri and MSM do not exercise or control the exercise of at least 15% of the votes attached to the voting shares in AHSB, they are not deemed to have an interest in 

the shares of ANM, AMH, DFSB, MBNS, AMP, AESB, Maestro and KASB. 

Dato’ Badri who is a director of AHSB, ANM and AMH, is also a director of MBNS, KASB and several other subsidiaries of AHSB. 

MSM has a direct equity interest over 11,000 Shares representing 0.0001% of the issued and paid-up share capital in Maxis. Please refer to Note 4 for MSM’s interests 

in the UTSB Group. 

Dato’ Mohamed Khadar bin Merican (Dato’ Khadar), a director of AMH is a person connected to MSM. 

(2) 

TANJONG GROUP 

* Note: PMP ceased to be a subsidiary of Tanjong with effect from 9 August 2011. 

TCCPM and TGV are wholly-owned subsidiaries of Tanjong whilst PMP was a wholly-owned subsidiary of Tanjong. Tanjong in turn is a wholly-owned subsidiary of 

Tanjong Capital Sdn Bhd (TCSB). 

UTSB holds 71,000,000 ordinary shares of RM1.00 each in TCSB (TCSB Shares) representing 37.49% of the issued and paid-up share capital of TCSB and has an indirect 

equity interest over 53,688,000 TCSB Shares representing 28.35% of the issued and paid-up share capital of TCSB held via its wholly-owned subsidiary, Usaha Tegas 

Resources Sdn Bhd (UTRSB). PSIL, Excorp and PanOcean each has a deemed equity interest over 124,688,000 TCSB Shares representing 65.84% of the issued and 

paid-up share capital in TCSB through UTSB. 

TAK has a deemed equity interest over 124,863,000 TCSB Shares representing 65.93% of the issued and paid-up share capital of TCSB through UTSB and Wangi Terang 

Sdn Bhd. Wangi Terang Sdn Bhd holds 175,000 TCSB shares representing 0.09% of the issued and paid-up share capital of TCSB. 

Although TAK and PanOcean have deemed interest in the 124,688,000 TCSB Shares held through UTSB, they do not have any economic or beneficial interest over such 

shares, as such interest is held subject to the terms of a discretionary trust. 

TCCPM and TGV are person connected to UTSB, UTRSB, PSIL, Excorp, PanOcean and TAK by virtue of their interest in TCSB as set out above. Please refer to Note 1 

above for interests of UTSB, PSIL, Excorp, PanOcean and TAK in Maxis. 

CCB who is a Director, is also an executive director of UTSB and a director of TCSB, MMSSB, MBSB, MMSB and certain subsidiaries of Maxis and Tanjong. ARM is an 

executive director of Tanjong and a director of PMP and was previously a director of TCSB (resigned with effect from 8 April 2011). ARM and CCB do not have any 

equity interest in UTSB, UTRSB, TCSB, Tanjong, TCCPM, TGV and PMP. Please refer to Note 1 above for ARM’s interests in Maxis. CCB has a direct equity interest over 

750,000 Shares representing 0.01% of the share capital of Maxis. 

Asgari who is a Director with a direct equity interest over 750,000 Shares representing 0.01% of the issued and paid-up share capital in Maxis, has a deemed equity 

interest over 6,406,000 TCSB shares representing 3.38% of the issued and paid-up share capital of TCSB. 

MSM also has a deemed equity interest over 8,596,000 TCSB shares representing 4.54% of the issued and paid-up share capital of TCSB. Please refer to Note 1 above 

for details of MSM’s interests in Maxis. 

(3) 

MGB GROUP 

TAK is also a major shareholder of MGB with a deemed equity interest over 389,933,155 ordinary shares of RM0.78 each representing 100% of the issued and paidup 

ordinary share capital in MGB held via MEASAT Global Network Systems Sdn Bhd (MGNS), a wholly-owned subsidiary of MAI Holdings Sdn Bhd in which he has a 

99.999% direct equity interest. MSS and MNL are wholly-owned subsidiaries of MGB. Hence, TAK also has deemed equity interest over MSS and MNL. Please refer to 

Note 1 above for details of TAK’s interests in Maxis. 

THO is also a director of MSS. Please refer to Note 1 above for details of THO’s interests in Maxis. THO does not have any equity interest in the shares of MGB or MSS or MNL. 

ARM and CCB are directors of MGB whilst ARM is also a director of MNL and CCB is also a director of MSS. ARM and CCB do not have any equity interest in the shares 

of MGB, MSS or MNL. Please refer to Notes 1 and 2 above for ARM’s and CCB’s interests in Maxis respectively.

276 




Continued 

(4) 

UTSB GROUP 

UTHSB is a wholly-owned subsidiary of UTSBM. UTSBM, UTP, UTESSB and SRGAP are wholly-owned subsidiaries of UTSB. 

Major Shareholders, UTSB, PSIL, Excorp, PanOcean and TAK are also major shareholders of UTSBM, UTHSB, UTP, UTESSB and SRGAP (collectively, UTSB Group). Please 

refer to Note 1 above for details of their interests in Maxis. 

ARM and CCB are also executive directors of UTSB. CCB is also a director of UTSBM. ARM and CCB do not have any equity interest in the shares of UTSB or UTSB Group. 

Please refer to Notes 1 and 2 above for ARM’s and CCB’s interests in Maxis respectively. 

MSM is also a director of certain subsidiaries of UTSB and an employee of the UTSB Group. MSM does not have any equity interest in the shares of the UTSB Group. 

Please refer to Note 1 above for details of MSM’s interests in Maxis. 

(5) 

BAB GROUP 

BAB is an associate company of UTSB. UTSB has a 42.41% deemed equity interest in BAB. 

Major Shareholders, UTSB, PSIL, Excorp, PanOcean and TAK are also major shareholders of BAB and its subsidiaries with each having a deemed equity interest of 

42.41% in BAB. Please refer to Note 1 above for their respective interests in Maxis. 

CCB is also a director of BAB and certain subsidiaries of BAB. CCB has a direct equity interest over 750,000 ordinary share of 0.20 each representing 0.03% of the share 

capital in BAB. Please refer to Notes 2 and 4 for CCB’s interests in Maxis and UTSB. 

(6) 

SLT AND MOBITEL 

Mobitel is a wholly-owned subsidiary of SLT. UTSB has a 44.98% deemed equity interest in SLT and a 100% deemed equity interest in Mobitel. 

Major Shareholders, UTSB, PSIL, Excorp, PanOcean and TAK each has a deemed equity interest of 44.98% in SLT and a 100% deemed equity interest in Mobitel. Please 

refer to Note 1 above for interests in Maxis of UTSB, PSIL, Excorp, PanOcean and TAK. 

CCB and SD who are Directors, are also directors of MMSSB, MISB and certain subsidiaries of Maxis, as well as of SLT and Mobitel but do not have any equity interests 

in the shares of SLT or Mobitel. SD has a direct equity interest over 750,000 Shares representing 0.01% of the issued and paid-up share capital in Maxis. Please refer to 

Notes 2 and 4 for CCB’s interests in Maxis and UTSB. 

(7) 

UMTS 

UMTS is a wholly-owned subsidiary of Advanced Wireless Technologies Sdn Bhd (AWT) which in turn is a 75% subsidiary of Maxis. The remaining 25% equity interest 

in AWT is held by MBNS Multimedia Technologies Sdn Bhd (MMT), which in turn is wholly-owned by AMH. 

Major Shareholders, UTSB, PSIL, Excorp, PanOcean and TAK each have a deemed equity interest of 100% in UMTS whilst THO, Dato’ Badri and MSM each have a 

deemed equity interest of 75% in UMTS. Please refer to Note 1 above for their respective interests in Maxis and AMH. 

Dr Fahad, CCB and SD who are Directors are also directors of MBSB, MMSB and several other subsidiaries of Maxis. Dr Fahad and SD are also directors of AWT and 

UMTS. Dr Fahad does not have any equity interest in the shares in Maxis. Please refer to Notes 1 and 4 for ARM’s interests in Maxis, the AHSB Group and UTSB, Notes 

2 and 4 for CCB’s interests in Maxis and UTSB and Note 6 for SD’s interest in Maxis respectively. 

NM who is a director of AWT and UMTS, is also a director of MBSB, MMSB and several subsidiaries of Maxis. NM does not have any equity interest in the shares of 

Maxis, MBSB, MMSB, AWT or in UMTS.

MAXIS BERHAD 


277 

(8) 

MCB 

MCB is the holding company of our Company. 

All Substantial Shareholders as set out in pages 246 to 247 of this Annual Report (except for EPF) are also major shareholders of MCB. Please refer to the notes 1 to 12 

as set out in pages 246 to 247 of this Annual Report for the interests of the interested Major Shareholders. 

Directors, GH, Dr Zeyad, Dr Fahad, ARM, CCB and SD are also directors of MCB. GH, Dr Zeyad and Dr Fahad do not have any equity interests in the shares of Maxis. GH, 

Dr Zeyad, Dr Fahad, ARM, CCB and SD do not have any equity interest in the shares of MCB. Please refer to Notes 1, 2, 4 and 6 above for interests in Maxis of ARM, 

CCB and SD respectively. 

(9) 

AIRCEL GROUP 

MCB holds 74% effective equity interest in Aircel Limited and DWL. 

All Substantial Shareholders as set out in pages 246 to 247 of this Annual Report (except for EPF) are also major shareholders of Aircel Group. Please refer to the notes 

1 to 12 as set out in pages 246 to 247 of this Annual Report for the interests of the interested Major Shareholders. 

Directors, GH, Dr Zeyad, Dr Fahad, ARM, CCB and SD are also directors of MCB. Dr Fahad, CCB and SD are also directors of Aircel Limited and DWL. GH, Dr Zeyad, Dr 

Fahad, ARM, CCB and SD do not have any equity interest in the shares of MCB, Aircel Limited or DWL. Please refer to Notes 1, 2 and 6 above for interests in Maxis of 

ARM, CCB and SD respectively and Note 8 above for interests in Maxis of GH, Dr Zeyad and Dr Fahad respectively. 

(10) 

BRIDGE MOBILE 

MCB holds a 10% direct equity interest in Bridge Mobile. 

All Substantial Shareholders as set out in pages 246 to 247 of this Annual Report (except for EPF) are also major shareholders of Bridge Mobile. Please refer to the notes 

1 to 12 as set out in pages 246 to 247 of this Annual Report for the interests of the interested Major Shareholders. 

SD is also a director of Bridge Mobile and he does not have any equity interest in the shares of Bridge Mobile. Please refer to Notes 6 and 8 above for SD’s interests in 

Maxis and MCB respectively. 

(11) 

STC 

STC is a Major Shareholder by virtue of its deemed equity interest of 25% in BGSM which in turn wholly-owns MCB. 

Directors, GH, Dr Zeyad and Dr Fahad are also employees of STC. GH is the chief executive officer of the international operations group of STC. Dr Zeyad is the group 

chief technology officer of STC. Dr Fahad is also a director of MMSSB, MISB and several other subsidiaries of Maxis and the vice president - corporate strategy and head of 

strategic investments unit of STC. Dr Zeyad has a direct equity interest over 6,666 shares in STC representing 0.0000033% of the issued and paid-up capital of STC but GH 

and Dr Fahad do not have any equity interests in the shares of STC. Please refer to Note 8 above for interests in Maxis of GH, Dr Zeyad and Dr Fahad respectively. 

(12) 

CELL C 


STC through STC Turkey Holding Ltd (STC Turkey) holds 35% interest in Oger Telecom Limited (Oger). Oger holds 75% interest in 3C Telecommunications (Proprietary) 

Limited (3C), which in turn holds 100% interest in Cell C. 

Dr Fahad is a director of STC Turkey. Eng Saud and Dr Fahad does not have any equity interest in the shares of STC Turkey, Oger, 3C or in Cell C. Please refer to Notes 

8 and 11 above for Dr Fahad’s interests in Maxis and STC. 

(13) 

AVEA 

STC is a Major Shareholder by virtue of its deemed equity interest of 25% in BGSM which in turn wholly-owns MCB.

278 




Continued 

STC through STC Turkey holds 35% interest in Oger, which in turn holds 99% interest in Oger Telekomunikasyon A.S. (OTAS). OTAS holds 55% interest in Turk 

Telekomunikasyon A.S. (Turk Telekom), which in turn holds 81% interest in AVEA. 

GH is a director of OTAS and Turk Telekom while Dr Fahad is a director of STC Turkey. GH and Dr Fahad do not have any equity interest in the shares of STC Turkey, 

OTAS, Turk Telekom or in AVEA. Please refer to Notes 8 and 11 above for the interests in Maxis and STC of GH and Dr Fahad respectively. 

(14) 

AXIS 

STC has a 80.1% equity interest in AXIS while MCB has a 14.9% equity interest in AXIS. 

All Substantial Shareholders as set out in pages 246 to 247 of this Annual Report (except for EPF) are also major shareholders of AXIS. Please refer to the notes 1 to 12 

as set out in pages 246 to 247 of this Annual Report for the interest of the interested Major Shareholders. 

Directors, GH, Dr Zeyad, Dr Fahad and CCB are also Commissioners of AXIS. Dr Fahad and CCB are also directors of MMSSB and MISB. GH, Dr Zeyad, Dr Fahad and CCB 

do not have any equity interest in MMSSB, MISB or AXIS. Please refer to Notes 2 and 8 above for interests in Maxis of CCB, GH, Dr Zeyad and Dr Fahad, respectively 

and Note 11 above for interests in STC of GH, Dr Zeyad and Dr Fahad. 

(15) 

MJS 

Maya Krishnan Tatparanandam (TMK), a major shareholder of MJS, is a Person Connected to TAK. TMK is not a director of MJS. Please refer to Note 1 above for details 

of TAK’s interests in Maxis. 

(16) 

CSS 

Major Shareholder, TAK is also a major shareholder of CSS with a deemed equity interest of 100% in CSS and MSM is also a director of CSS. Please refer to Note 1 

above for their respective interests in Maxis. 

(17) 

MLP 

Major Shareholders, TAK and PanOcean are also major shareholders of MLP with each having a deemed equity interest of 100% in MLP. Please refer to Note 1 above 

for their respective interests in Maxis. 

MSM is a director of MLP and does not have any equity interest in the shares of MLP. Please refer to Note 1 above for details of MSM’s interests in Maxis. 

(18) 

SEBIT 


STC through STC Turkey holds 35% shares in Oger, which in turn holds 99% interest in OTAS. OTAS holds 55% shares in Turk Telekom, which in turn owns 100% of 

SEBIT. 

GH is a director of OTAS and Turk Telekom while Dr Fahad is a director of STC Turkey, GH and Dr Fahad do not have any equity interest in the shares of STC Turkey, 

OTAS, Turk Telekom or in SEBIT. Please refer to Notes 8 and 11 above for the interests in Maxis and STC of GH and Dr Fahad respectively.

MAXIS BERHAD 


279 


ADDITIONAL 

DISCLOSURES 

TRANSACTIONS THROUGH MEDIA AGENCIES 

Some of the media airtimes, publications and programme sponsorship arrangements (Media Arrangements) of the Maxis group are 

concluded on normal commercial terms with independent media-buying agencies whose role is to secure advertising or promotional 

packages for their clients. These Media Arrangements may involve companies in the Astro group which are licensed to operate 

satellite Direct-to-Home television and FM radio services, and undertake a number of other multimedia services in Malaysia. The 

transactions between the media-buying agencies and the Astro group are based on terms consistent with prevailing rates within the 

media industry. For the financial year ended 2011 the value of such transactions, which are not related party transactions entered into 

by the Maxis Group and the Astro group and excluded from the related party transactions disclosed elsewhere in this Annual Report, 

amounted to RM6,529,000. 

STATUS OF UTILISATION OF CORPORATE PROPOSALS 

On 24 February 2012, the Company made its first issuance under the Sukuk Programme of RM2.45 billion nominal value with a tenure 

of 10 years from the date of issue (“First Issuance”). From the proceeds from the First Issuance, RM1.45 billion was used for refinancing 

of the outstanding loans which were fully repaid on the same date, and RM1.00 billion is to be used for capital expenditure and/or 

working capital and/or general funding requirements and/or general corporate purposes. 

IMPOSITION OF SANCTIONS/PENALTIES 

There were no public sanctions and/or penalties imposed on the Company or its subsidiaries, Directors or Management by the relevant 

regulatory bodies during the financial year ended 31 December 2011. 

EMPLOYEE SHARE OPTION SCHEME (ESOS) 

Please refer to the Directors’ Report (pages 101 and 102) and Note 28(b) (pages 166 and 167) of the Audited Financial Statements of 

this Annual Report. The ESOS implemented on 17 September 2009 is the Company’s only employee share option scheme currently in 

existence during the financial year ended 31 December 2011.

280 


MATERIAL 

CONTRACTS 

RELATIONSHIP BETWEEN 

DIRECTOR OR MAJOR 

CONSIDERATION PASSING 

SHAREHOLDER AND 

TO OR FROM 

CONTRACTING PARTY 

THE COMPANY OR ANY MODE OF (IF DIRECTOR OR 

OTHER CORPORATION SATISFACTION OF MAJOR SHAREHOLDER IS 

NO. CONTRACT DATE PARTIES GENERAL NATURE IN THE GROUP CONSIDERATION NOT CONTRACTING PARTY) 

1 Licence 20 October The Grant by MCB to the The consideration of each Fulfilment of MCB is a Major Shareholder 

Agreement 2009 Company Company and its party for the agreement is promises and of the Company. The 

subsidiaries of a the exchange of promises cash of RM10 Company is a 70% 

Maxis perpetual, royalty-free and a cash payment of subsidiary of MCB 

Communications licence to use in RM10 payable by the 

Berhad (MCB) Malaysia, trademarks Company Please see Note 1 below 

and service marks that 

for further details of 

are registered in the 

the relationship 

name of MCB 

2 Transponder 17 October Maxis Leasing of transponders Rental fee payable Cash MB is a wholly-owned 

Lease for 2007 Broadband for MEASAT-3 by MB by MB to MSS subsidiary of the Company 

MEASAT-3 Sdn Bhd for use of bandwidth 

supplemented Supplemental (MB) capacity Please see Note 2 

by Letter below for further details 

supplemental No 1: 20 MEASAT Satellite on the relationship 

letters May 2009 Systems Sdn Bhd between MB and MSS 

nos 1 - 5 

Supplemental 

Letter 

No 2: 9 

June 2009 

Supplemental 

Letter 

No 3: 17 

February 2010 

Supplemental 

Letter 

No 4: 17 

June 2010 

Supplemental 

Letter 

No 5: 20 

April 2011 

(MSS) 

3 Teleport 17 October MB Lease rentals of MSS Service fee payable by Cash Please see Note 2 below 

Services 2007 teleport and earth MB to MSS for further details on the 

Agreement MSS station facility by MB relationship between 

(Lease rentals 

MB and MSS 

of MEASAT 

earth station 

facility)

MAXIS BERHAD 


281 





TO OR FROM 





4 Transponder 14 June MB Lease of transponder Rental fee payable Cash Please see Note 2 below 

Lease 2007 for NSS Ku Band from by MB to MSS for further details on the 

Agreement MSS MSS by MB relationship between 

for NSS Ku Supplemental MB and MSS 

Band Letter No 

supplemented 1: 17 May 

by 2010 

supplemental 

letter no 1 

5 (a) Agreement 11 April MB The agreements in Undertakings and Fulfilment of Please see Note 3 below 

for 3G 2008 5(a), (b) and (c) provide agreements in the undertakings for further details on 

Service Level UMTS (Malaysia) for arrangements agreements and agreements the relationship between 

for design, Sdn Bhd relating to the in the agreements MB and UMTS 

build and (UMTS) migration by UMTS 

operation of 

of provision of 3G 

3G MBSB 

wholesale services 

Network and 

to MB for MB to 

Migration of 

provide 3G wholesale 

3G Wholesale 

services to licensees 

Services 

under the 

Provision 

Communications and 

Multimedia Act 1998 

(b) Supple- 12 February who are authorised 

mental 2009 to provide 3G mobile 

Agreement to 

services to end-users 

Agreement for 

3G Service 

Level for 

design, build 

and operation 

of 3G MBSB 

Network and 

Migration of 

3G Wholesale 

Services 

Provision 

dated 11 April 

2008 

(c) Supple- 28 October 

mental 2011 

Agreement to 

Agreement for 

3G Service 

Level for 

design, build 

and operation 

of 3G MBSB 

Network and 

Migration of 

3G Wholesale 

Services 

Provision 

dated 11 April 

2008

282 


MATERIAL 

CONTRACTS 

Continued 





TO OR FROM 





6 Services 14 February Maxis Mobile Procurement of Consideration passing Cash MMS is a wholly-owned 

Agreement 2011 Services Sdn Bhd customer call-handling from MMS to SRG subsidiary of the Company 

(MMS) and telemarketing is RM113.8 million 

services by MMS 

Please see Note 4 below 

SRG Asia Pacific from SRG for further details on the 

Sdn Bhd (SRG) 

relationship between 

MMS and SRG 

7* Extension 15 December Maxis Mobile Agreement for the Undertakings and Fulfilment of MM and AWT are 

Agreement 2010 Sdn Bhd (MM) extension of the term agreements in undertakings subsidiaries of the 

of a shareholder’s the agreements and agreements Company 

Advanced Wireless loan amounting to in the agreements 

Technologies RM104,923,583.64 Please see Notes 1 and 

Sdn Bhd (AWT) owing by AWT to 3 below for further details 

MM, for a further 

on the relationship 

period of five years from 

between MM and AWT 


The loan was originally 

granted pursuant to a 

letter dated 


which was 

supplemented by an 

agreement dated 


between MCB and 

AWT (collectively, 

SLA). The rights, 

duties, obligations and 

liabilities of MCB 

under the SLA was 

novated to MM via a 

Deed of Novation 

dated 28 September 

2009 between MM, 

MCB and AWT

MAXIS BERHAD 


283 





TO OR FROM 





8* Extension 15 December MBNS Multimedia Agreement for the Undertakings and Fulfilment of Please see Note 3 below 

Agreement 2010 Technologies extension of the term agreements in the undertakings and for further details on 

Sdn Bhd of a shareholder’s loan agreements agreements in the relationship between 

(MMT) amounting to the agreements AWT and MMT 

RM33,059,601.83 

AWT 

owing by AWT to MMT, 

for a further period of 

five years from 


The loan was originally 

granted pursuant to an 

agreement dated 


between MMT and AWT 

9 Managed 1 July 2011 MB Lease of bandwidth Rental fee payable Cash MBIL is a subsidiary of MGB 

Bandwidth capacity on IPSTAR-1 by MB to MBIL 

Services MEASAT Broadband satellite by MBIL Please see Note 2 below 

Agreement (International) for further details on the 

Ltd (formerly 

relationship between 

known as South 

MB and MBIL 

Asia Data and 

Information 

Services Ltd) 

(MBIL) 

10 IPTV Services 19 January MB Provision of IPTV Fees payable by MB to Cash Please see Note 3 below 

Agreement 2012 platform and customer Media Innovations and D5 for further details on the 

Media Innovations premises equipment relationship between MB, 

Pty Ltd (Media development services Media Innovations and D5. 

Innovations) and IPTV related 

services including 

Digital Five operational, consultancy 

Sdn Bhd (D5) and project (hardware 

and software) services

284 


MATERIAL 

CONTRACTS 

Continued 





TO OR FROM 





11 (a) Publishing 4 March 2011 MMS The agreements in Fees payable by MMS Cash Please see Note 3 below 

and Advertising 11(a) and (b) to D5 for further details between 

Services D5 provide for the MMS and D5 

Agreement 

appointment of D5 by 

MMS as its (i) exclusive 

(b) Supple- 4 March 2011 content aggregator, 

mental 

publishing and 

Agreement to 

advertising agency 

Publishing and 

services provider across 

Advertising 

Maxis’ Internet properties 

Services 

(other than mobile 

Agreement 

properties and IPTV 

dated 4 March 

services); (ii) exclusive 

2011 advertising agency services 

provider for IPTV services; 

and (iii) non-exclusive 

content aggregator, 

publishing and advertising 

agency services provider 

across Maxis’ mobile 

properties 

* Additional information relating to agreements nos. 7 and 8. 

RELATIONSHIP 

BETWEEN 

BORROWER 

AND DIRECTOR 

OR MAJOR 

SHAREHOLDER 

(IF DIRECTOR 

TERMS AS 

OR MAJOR 

TO PAYMENT 

NAMES OF SHAREHOLDER OF INTEREST 

LENDER AND IS NOT THE PURPOSE OF AMOUNT OF AND REPAYMENT SECURITY 

NO. CONTRACT BORROWER BORROWER) THE LOAN THE LOAN INTEREST RATE OF PRINCIPAL PROVIDED 

1 Extension Lender: MM Please refer to To provide capital RM104,923,583.64 1% per annum The loan together Nil 

agreement Notes 1 and 3 support for AWT, above the base with interest accrued 

between MM Borrower: AWT below for the holding lending rate shall be repaid on 

and AWT further details company of of Malayan 24 November 2015 

on the UMTS Banking Berhad 

relationship 

between MM 

and AWT 

2 Extension Lender: MMT Please refer to To provide capital RM33,059,601.83 1% per annum The loan together Nil 

agreement Note 3 below support for AWT, above the base with interest accrued 

between MMT Borrower: AWT for further the holding lending rate of shall be repaid on 

and AWT details on the company of Malayan 9 December 2015 

relationship UMTS Banking Berhad 

between MMT 

and AWT

MAXIS BERHAD 


285 

Notes: 

1 Binariang GSM Sdn Bhd, Usaha Tegas Equity Sdn Bhd, Usaha Tegas Sdn Bhd (UTSB), Pacific States Investment Limited (PSIL), Excorp Holdings N.V. (Excorp), PanOcean 

Management Limited (PanOcean), Ananda Krishnan Tatparanandam (TAK), Harapan Nusantara Sdn Bhd, Tun Dr Haji Mohammed Hanif bin Omar (THO), Dato’ Haji Badri 

bin Haji Masri (Dato’ Badri), Mohamad Shahrin bin Merican (MSM), STC Malaysia Holding Ltd, STC Asia Telecom Holding Ltd, STC and Public Investment Fund, who are 

Major Shareholders of the Company are also major shareholders of MCB. The Company is a 70% subsidiary of MCB 

TAK is also a director of PanOcean, Excorp, PSIL and UTSB. ARM and CCB are also executive directors of UTSB whilst ARM is also a director of PanOcean. 

Ghassan Hasbani (GH), Dr Zeyad Thamer AlEtaibi (ZT), Dr Fahad Hussain S. Mushayt (FH), Augustus Ralph Marshall (ARM), Chan Chee Beng (CCB), Sandip Das (SD) are 

Directors of MCB and the Company. FH, CCB and SD are also Directors of MMS, MB and MM. ZT, FH and GH are also employees of STC. ZT is the Vice President of 

Network Sector of STC, FH is the head of Strategic Investments Unit of STC and GH is also the chief executive officer (International) of STC. In addition, ARM, CCB and 

SD are the shareholders of Maxis. 

2 MSS and MBIL are the wholly-owned subsidiaries of MGB. TAK who is a Major Shareholder of the Company is also a major shareholder of MGB with a deemed equity 

interest over 100% of the issued and paid-up ordinary share capital in MGB. 

THO who is a Major Shareholder of the Company is also a director of MSS. 

ARM and CCB are also directors of MGB whilst CCB is also a director of MSS. Please refer to Note 1 above for the relationships and interests of ARM and CCB in the 

Company. 

3 UMTS is a wholly-owned subsidiary of AWT which in turn is a 75% owned subsidiary of the Company. The remaining 25% equity interest in AWT is held by MBNS 

Multimedia Technologies Sdn Bhd (MMT), which in turn is wholly-owned by Astro Malaysia Holdings Sdn Bhd (AMH). AMH is a wholly-owned subsidiary of Astro 

(Network) Malaysia Sdn Bhd which is in turn wholly-owned by Astro Holdings Sdn Bhd (AHSB). 

D5 is an indirect wholly-owned subsidiary of AMH whilst Media Innovations is wholly-owned by Media Innovations Pte Ltd (MIPL) which in turn is 44.95% held by All 

Asia Digital Networks Pte Ltd (AADN). AADN is an indirect wholly-owned subsidiary of AHSB. 

UTSB, PSIL, Excorp, PanOcean, TAK, THO, Dato’ Badri and MSM who are Major Shareholders of the Company are also major shareholders of AMH. 

ARM is also a director of AHS , ANM, AMH, Media Innovations and MIPL. Please see Note 1 above for the relationships and interests of ARM, Dato’ and Badri in the 

Company, MCB, AWT and UMTS. 

Dato’ Badri is also a director of AHSB, ANM and AMH. 

Dato’ Mohamed Khadar bin Merican, a director of AMH is a person connected to MSM, who is a major shareholder of the Company. 

4 SRGAP is a wholly-owned subsidiary of UTSB. 

UTSB, PSIL, Excorp, PanOcean and TAK are also major shareholders of SRGAP. Please refer to Note 1 above for details of their relationship and interests in the Company. 

ARM and CCB are also executive directors of UTSB. Please refer to Note 1 for ARM’s and CCB’s relationship and interests in the Company respectively. 

MSM is also a director of certain subsidiaries of UTSB. Please refer to Notes 1 and 3 above for details of MSM’s relationship and interests in the Company

286 


GLOSSARY 

2G 

Second generation or 2G digital wireless 

communications system which uses circuit 

switching technology. GSM is one of the 

most widely used 2G mobile systems. 

3G 

Third generation or 3G digital wireless 

communications system which uses 

both circuit and packet switching 

technology and offers higher speed data 

transmission rates than those available 

under 2G. W-CDMA and CDMA2000 are 

two of the leading 3G technologies. 

ADSL 

Asymmetric Digital Subscriber Line; 

a digital subscriber line of copper 

loop enhanced technologies, which is 

asymmetric, providing faster transmission 

rates downstream than upstream. It 

is suited to fast internet access where 

requests for web pages and email 

generally require less bandwidth than the 

receipt of multimedia and web pages. 

ARPU 

Average Revenue Per User. This is the 

average of the monthly revenue per 

subscription in a period, each calculated 

by dividing (i) the monthly revenue (net 

of rebates) less roaming partner revenue 

and non-recurring fees by (ii) the monthly 

average number of revenue generating 

subscriptions. 

Bandwidth 

The information-carrying capacity of a 

communications channel expressed in 

the form of rate of data transfer (bits per 

second or multiples of it). 

Base Station 

A transceiver station located within a cell 

used for communication between mobile 

devices within the cell and a Base Station 

Controller (BSC) or Mobile Switching 

Center (MSC). 

Basic Earnings Per Share 

Profit attributable to equity holders of the 

Company divided by 7,500 million shares. 

Broadband 

Transmission capacity having a 

bandwidth greater than 256kbps, 

capable of high-speed data transmission. 

BTS 

Base Transceiver Station; radio equipment 

contained in a base station that is used for 

transmitting and receiving signals to and 

from a mobile device within a single cell. 

Capex 

Capital expenditure 

CDMA 

Code Division Multiple Access; a digital 

wireless transmission technology based 

on continuous digital transmission using 

coding sequences to mix and separate 

voice and data signals. CDMA allows 

more than one user to simultaneously 

occupy a single radio frequency band 

with reduced interference. 

Cloud Computing 

The delivery of computing as a service 

rather than a product, whereby shared 

resources, software and information are 

provided to computers and other devices 

as a metered service over a network 

(typically the internet). 

Data Centre 

Services which include server racks 

or space in a controlled environment, 

regulated power supply, dedicated and 

shared network connections, state-of-theart 

security, fire detection and suppression 

among others. 

EBITDA 

Profit before finance income, finance cost, 

taxation, depreciation, amortisation and 

allowance for write-down of identified 

network assets. 

ETP 

Economic Transformation Programme; 

launched by the government of Malaysia, 

the programme acts as the catalyst of 

growth in two ways: focusing resources 

on 12 National Key Economic Areas 

(NIKEAs) and improving competitiveness 

through six Strategic Reform Initiatives. 

Fibre Optic 

A means of providing high-speed data 

transmission using light to send signals 

through glass fibres. 

Free Cash Flow 

Cash flows from operations less capital 

expenditure, handset subsidies, interest 

payments and finance lease repayments. 

Gbps 

1 billion bits per second 

Gearing Ratio 

Calculated as interest-bearing borrowings, 

loan from a related party, payables under 

deferred payment scheme and loan 

from immediate holding company and 

derivative financial liabilities/assets on a 

net basis less cash and cash equivalents 

divided by total equity. 

GPRS 

General Packet Radio Service; an 

enhancement of the GSM system that 

supports packet switching and higher 

speed data transmission rates than 2G. 

GSM 

Global System for Mobile 

communications; one of the most 

widely used standards for mobile 

communications; initially developed to 

standardise the use of mobile technology 

in Europe. 

HSDPA 

High-Speed Downlink Packet Access; an 

extension to 3G that provides downlink 

data speeds in excess of standard 3G. 

HSPA/HSPA+ 

High-Speed Packet Access; an extension 

to 3G that provides downlink and uplink 

data speeds in excess of standard 3G.

MAXIS BERHAD 


287 

ICT 

Information and Communication 

Technology; an umbrella term that 

includes any communication device 

or application, encompassing radio, 

television, mobile phones, computer 

and network hardware and software, 

satellite systems as well as various 

services and applications associated with 

them, such as video-conferencing and 

distance-learning. 

IFRS 

International Financial Reporting 

Standards 

IM 

Instant Messaging 

Interest Cover Ratio 

Calculated as profit from operations 

divided by finance costs. 

International Gateway 

An international gateway exchange; 

a telephone switch that forms the 

gateway between a national telephone 

network and one or more other 

international gateway exchanges, thus 

providing cross-border connectivity. 

Internet 

The interconnection of servers worldwide 

that provides communications and 

application services to an international 

base of business, consumers, education, 

research, government and other 

organisations. 

IP 

Internet Protocol; a standard that keeps 

track of network addresses for different 

nodes, routes outgoing messages, and 

recognises incoming messages. 

IPTV 

Internet Protocol Television 

Kbps 

One thousand bits per second 

KPKK 

Ministry of Information Communication 

and Culture 

LAN 

Local Area Network; a short-distance 

data communications network usually 

within a building. 

LTE 

Long Term Evolution or 4G LTE; a 

standard for wireless communication of 

high-speed data for mobile phones and 

data terminals with increased capacity 

and speed compared to 3G technology. 

Managed Services 

Outsourcing of business operations and 

infrastructures to a managed services 

provider through agreed Service Level 

Agreement. Managed services allow 

enterprises to reduce their capital and 

resource investment. Such outsourced 

services are usually IT support, helpdesk/ 

call centre, voice (fixed voice lines, PABX), 

wide area networks (WAN) and local 

area networks (LAN). 

MASB 

Malaysian Accounting Standards Board 

Maxis Group or the Group 

Maxis Berhad and its subsidiaries 

Maxis or the Company 

Maxis Berhad (Company No. 867573-A) 

Maxis Home Services 

The first multiple-play service in Malaysia, 

available to customers in fibre-connected 

areas nationwide. Services include 

access to voice, high-speed internet, 

value-added services and content. These 

services are made available over multiple 

access and across multiple screens. 

Mbps 

One million bits per second 

MCB 

Maxis Communications Berhad (Company 

No. 158400-V) 

MEPs 

Maxis Exclusive Partners 

Metro-E 

Metro-Ethernet which provides point-topoint 

connection between offices. 

MFRS 

Malaysian Financial Reporting Standards 

MMLR 

Main Market Listing Requirements 

MMS 

Multimedia Messaging Service 

MOE 

Ministry of Education Malaysia 

MOU 

Minutes Of Use; the average total 

(incoming and outgoing) minutes of use 

per subscription being the average of the 

total minutes per subscription calculated 

by dividing the monthly total minutes by 

the monthly average number of active 

subscriptions. 

MVNO 

Mobile Virtual Network Operator 

myLaunchpad 

Maxis’ content destination portal, 

offering locally relevant content and 

services. 

M2M 

Machine-to-Machine 

Net Assets per Share 

Calculated as equity attributable to equity 

holders of the Company divided by the 

number of issued and paid-up shares. 

Net Debt 

Calculated as total interest-bearing 

financial liabilities (including payables 

under deferred payment scheme, loan 

from a related party, borrowings and 


net basis) less cash and cash equivalents. 

Network 

A group of two or more computer 

systems or telecommunications elements 

linked together. 

NFC 

Near Field Communication 

PAT 

Profit after taxation

288 


GLOSSARY 

Continued 

PBT 

Profit before taxation 

RAN 

Radio Access Networks; part of a mobile 

telecommunication system that provides 

radio access between a mobile device 

and a core network. 

Return on Average Equity 

Calculated as profit attributable to equity 

holders of the Company divided by the 

average of the opening and closing 

equity attributable to equity holders of 

the Company for the period. 

Return on Average Assets 

Calculated as the profit for the financial 

year (adjusted for finance costs, net of 

tax) divided by the average opening and 

closing total assets for the period. 

Return on Invested Capital 

Calculated as the profit for the financial 

year (adjusted for finance income/ 

costs, net of tax) divided by the average 

opening and closing invested capital for 

the period. Invested capital is defined as 

total equity, interest-bearing borrowings, 

loan from a related party, payables under 

deferred payment scheme and loan 



net basis less cash and cash equivalents. 

Revenue Generating 

Subscriptions (RGS) 

With effect from 1 January 2011, 

in parallel to the old definition, 

Maxis adopted a stricter definition of 

subscriptions for reporting purposes 

that is more reflective of the revenuegenerating 

base. The definition of mobile 

subscriptions for Postpaid, Prepaid and 

Wireless Broadband are now as follows: 

- Postpaid and Wireless Broadband: 

subscriptions on the register excluding 

subscriptions that have been barred for 

more than 50 days 

- Prepaid: Subscriptions on the register 

excluding subscriptions that do not have 

any revenue contribution for more than 

50 days. 

RM 

Ringgit Malaysia; the lawful currency of 

Malaysia. 

Roaming 

When mobile customers leave their own 

mobile carrier’s home network and move 

on to another mobile operator’s network. 

Server 

A shared computer on a LAN that 

provides services to other computers in 

the network. 

SIM 

Subscriber Identity Module; an electronic 

card which stores the subscriber identity 

information and authentication key which 

identifies the subscriber to a network. 

SKMM 

Malaysian Communications and 

Multimedia Commission 

Smartphone 

A mobile phone offering advanced 

capabilities, converging the telephone 

functionalities with features such as 

calendars, email, internet access and 

more. 

SMS 

Short Message Services; a service 

whereby mobile telephone users may 

send text messages. 

Total Borrowings 

Include interest-bearing borrowings, 

loan from a related party, payables 

under deferred payment scheme, loan 



net basis. 

USP 

Universal Service Provision; an initiative to 

promote the widespread availability and 

usage of network and/or applications 

services by encouraging the installation 

of network facilities and the provision of 

network and/or applications services in 

underserved areas. 

VoIP 

Voice over IP; the communication 

protocols, technologies, methodologies 

and transmission techniques involved 

in the delivery of voice communications 

and multimedia sessions over Internet 

Protocol (IP) networks, such as the 

internet. 

VSAT 

Very Small Aperture Terminal; a small 

earth station for transmission of data by 

satellite. 

WAP 

Wireless Application Protocol; an open, 

global protocol that is designed to send 

web pages to wireless devices and allow 

users to access information instantly. 

WAP-STK 

Wireless Application Protocol through 

Subscriber Identity Module (SIM) Toolkit; 

a platform that allows users to access 

WAP-based content as SMS through the 

use of SIM card menus. 

WiFi 

A local area network that uses high 

frequency radio signals to transmit and 

receive data over distances of a few 

hundred feet; uses ethernet protocol. 

Wireless LAN 

Local Area Networks that transmit and 

receive data over the air. 

WiMAX 

Worldwide Inter-operability for 

Microwave Access, which is a 

telecommunications technology aimed 

at providing wireless data over long 

distance, from point-to-point links to full 

mobile cellular type access. 

Wireless Broadband 

Broadband subscriptions for internet 

access on computers via wireless 

modems only. This does not include any 

internet access on mobile phone screens.

MAXIS BERHAD 


289 


MAXIS 

CENTRES 

CENTRAL REGION 

ALAMANDA 

Lot G80/81, Ground Floor 

Alamanda Putrajaya Shopping 

Centre 

Jalan Alamanda Precint 1 

62000 Putrajaya 

CHERAS 

No 69, Jalan Manis 4 

Taman Segar, Cheras 


E@CURVE 

G-27, e@curve No 2A 

Jalan PJU 7/3 

Mutiara Damansara 


KLANG 

C7-1-0, Ground Floor 

BBT One 

Lebuh Batu Nilam 2 

Bandar Bukit Tinggi 

41200 Klang 

KUALA LUMPUR CITY 

CENTRE 

Maxis Centre KLCC 

Ground Floor 

Menara Maxis 


LOW COST CARRIER 

TERMINAL 

Lot LCPC 06 

Public Concourse LCCT 

64000 KLIA, Sepang 

PAVILION 

Lot 1.31, Level 1 

Pavilion KL 

Jalan Bukit Bintang 


SELAYANG 

Grd & 1st Flr, 69, Jalan 2/3A 

Pusat Bandar Utara 

Off Jalan KM12, Jalan Ipoh 

68100 Batu Caves 

SUNWAY PYRAMID 

Lot F1.99, First Floor 

Sunway Pyramid Phase 2 

No 3 Jalan PJS 11/15 

Bandar Sunway 


TAMAN TUN DR ISMAIL 

No 43 - 44, Jalan 2/71 

Off Jalan Tun Mohd Fuad 

Taman Tun Dr Ismail 


THE GARDENS 

Lot T-231, Third Floor 

The Gardens, Mid Valley 

Lingkaran Syed Putra 


KL SENTRAL 

Unit 11, Tkt 1 

Stesen Sentral KL 


NORTHERN REGION 

ALOR SETAR 

18D & E, Wisma Kurnia 

Lebuhraya Darulaman 

05100 Alor Star 

BAYAN BARU 

Unit No 15-G-10 

Block A Bayan Point 

Medan Kampung Relau 

11900 Pulau Pinang 

IPOH 

No 1, Persiaran Greentown 8 

Greentown Business Centre 

30450 Ipoh 

LANGKAWI 

No 1, Persiaran Mutiara 

Kelana Emas 

07000 Langkawi 

PULAU PINANG 

Unit S-1-B and Unit S-2-A 

The Northam 

No 55 

Jalan Sultan Ahmad Shah 


PRAI 

No 52, Jalan Todak 4 

Pusat Bandar, Seberang Jaya 

13700 Prai 

Pulau Pinang 

QUEENSBAY 

LG-05, Lower Ground Floor 

Queensbay Mall 

100 Persiaran Bayan Indah 

11900 Bayan Lepas 

TAIPING 

Lot 85, Jalan Taiping Utara 

Taman Taiping Utara 

34600 Kamunting 

EAST COAST 

KOTA BHARU 

No 51 & 52 

Jalan Kebun Sultan 

15000 Kota Bharu 

KUANTAN 

A15 & 17, Jalan Tun Ismail 1 

Kuantan Parade 

25000 Kuantan 

TERENGGANU 

A1-A2, Jalan Batas Baru 

20300 Kuala Terengganu 

SOUTHERN REGION 

BP Mall 

Lot G67, Batu Pahat Mall 

83000 Batu Pahat 

DANGA BAY 

Block 6-G-1, Danga Walk 

Batu 41/2 Jalan Skudai 

80200 Johor 

MELAKA 

Lot G-27, Mahkota Parade 

No 1 Jalan Merdeka 

75000 Melaka 

SEREMBAN 

No 136, Jalan Tun Dr Ismail 

Seremban City Square 

70200 Seremban 

TAMAN MOLEK 

Ground Floor 

Unit No 12 & 14 

Jalan Molek 1/9 

Taman Molek 

81100 Johor Bahru 

SABAH 

KOTA KINABALU 

Lot 7, Block B 

Damai Plaza Phase 3 

88300 Kota Kinabalu 

WARISAN SQUARE 

Lot 9, Block B 

Warisan Square 


SANDAKAN 

Lot 165, Block 18 

Ground Floor 

Prima Square, Jalan Tinosa 

90000 Sandakan 

SARAWAK 

KUCHING 

Lot 24-25 

(Ground, 1st, 2nd Floor) 

Al Idrus Commercial Centre 

Jalan Satok 

93400 Kuching 

MIRI 

No 2377 

(Ground Floor, 1st, 2nd) 

and 2378 (Ground Floor) 

Jalan Boulevard 1 

Boulevard Commercial Centre 

98000 Miri

290 

MAXIS 

EXCLUSIVE 

PARTNERS 

CENTRAL REGION 

ACTION TELE NET CENTER SDN BHD 

Lot No G-2, Ground Floor 

Hartamas Shopping Centre 

No 60, Jalan Sri Hartamas 1 


Tel: 03-62011377 

ASHITA COMMUNICATION SDN BHD 

No 144, Persiaran Raja Muda Musa 

KS 04 Port Klang 

42000 Pelabuhan Klang 

Selangor 

Tel: 03-31655679 


G13b, Ground Floor 

Klang Parade, 2112 KM 2 

41050 Klang 

Selangor 

Tel: 03-33440139 


No 200, Jalan Sultan Abdul Samad 

42700 Banting 

Selangor 

Tel: 03-31815300 


No 26, Jalan Besar Kapar 

42200 Kapar 

Selangor 

Tel: 03-32500048 

AUDIOLINK COMMUNICATIONS 

SDN BHD 

No 52A, Jalan 17/9 

Bandar Mahkota Cheras 

43200 Cheras 

Selangor 

Tel: 03-90751505 

CELNET SDN BHD 

No 12, Jalan Yong Shook Lin 


Selangor 

Tel: 03-79588900 

CELLTEL (M) SDN BHD 

No 36G, Jalan Tanjung 8 

Taman Putra 

68000 Ampang 

Selangor 

Tel: 03-23000354 

CELLTEL (M) SDN BHD 

Main Lobby, E-Mart Complex 

Jalan Pasar 


Tel: 03-21427218 

CENTER POINT COMMUNICATION & 

ENTERPRISE 

No 2, Jalan SS 15/8 

(Inside Asia Cafe SS15) 

47500 Subang Jaya 

Selangor 

Tel: 03-56313228 

CHAU LENG ENTERPRISE 

Lot 1621, Medan Sungai Besar 

45300 Sungai Besar 

Selangor 

Tel: 03-32241380 

COMPU-COMM HOLDINGS SDN BHD 

No 9, Jalan Ambong Kiri 2 

Kepong Baru 


Tel: 03-62501900 


Pasaraya Besar Carrefour 

Kepong, Level 2, Lot 9 

No 2 Jalan Metro Perdana 


Tel: 03-62595028 


F2.42, Carrefour Shopping Center 

No 6, Jalan 8/27A 

Sekysen 5, Wangsa Maju 


Tel: 03-62595028 


F3.06, Level F3 

Carrefour Shopping Centre 

No 3, Jalan SS16/1 


Selangor 

Tel: 03-56330808 


F1.02, Klang Carrefour 

No 2, Jalan Harmoni 3 Ku/3 

Sg Pinang 

41200 Klang 

Selangor 

Tel: 03-33427210 


Lot 11, Ground Floor Tesco 

Medan Niaga 

45000 Kuala Selangor 

Selangor 

Tel: 03-32896462 


Digital Mall, Lot No G-03A 

Ground Floor, Digital Mall 

No 2, Jalan 14/20, Seksyen 14 


Selangor 

Tel: 03-78735887 

EICAS COMM (M) SDN BHD 

No 130, Jalan Cerdas 

Taman Connaught Cheras 


Tel: 03-91016911 

ERICOM SDN BHD 

Unit LGF 2, Lower Ground Floor 

The Sphere, No 1 

Avenue 1 Bangsar South 

No 8, Jalan Kerinchi 


Tel: 03-77852355 

ERICOM SDN BHD 

No C-19 Jalan 1/21 

(Old Town) 


Selangor 

Tel: 03-77852355

MAXIS BERHAD 


291 

EVERCALL SDN BHD 

No 3, Jalan 7A/62A 

Bandar Menjalara 


Tel: 03-62742012 


LOT LI-23A, No 1 Jln Kiara 

Mont Kiara 


Tel: 03-62011891 


Lot G-18E, Ground Floor 

The Store Shopping Complex 

47000 Sungai Buloh 

Selangor 

Tel: 03-61577868 


No 21, Ground Floor 

Jalan Puteri 1/4 Bandar Puteri 

47100 Puchong 

Selangor 

Tel: 03-61563242 

GENTEL COMMUNICATION SDN BHD 

L4-30, Level 4 

The Mines Shopping Fair 

43300 Seri Kembangan 

Selangor 

Tel: 012-2807777 

GET-A-PHONE MARKETING SDN BHD 

Lot G18F & G18G 

Ground Floor, IOI Mall 

Batu 9 Jalan Puchong 

Bandar Puchong Jaya 

47100 Puchong 

Selangor 

Tel: 03-58822020 

HOMESTEAD SHOP (M) SDN BHD 

Lot G22, Ground Floor 

Plaza Low Yat 



Tel: 03-78474512 

INCOMM MARKETING SDN BHD 

G09, Aeon Jusco Bukit Tinggi 

Shopping Centre 

Bandar Bukit Tinggi 2 

41200 Klang 

Selangor 

Tel: 03-33240909 


G19, Ground Floor 

Aeon Shopping Centre 

No 2 Jalan Equine 

Seri Kembangan 

43300 Seri Kembangan 

Selangor 

Tel: 03-89482219 


F49, AEON Cheras Selatan Shopping Centre 

Lebuh Tun Hussein Onn 

43200 Cheras 

Selangor 

Tel: 03-3318815 

KTS COMMUNICATION SDN BHD 

No 10, Jalan Kapar 

41400 Klang 

Selangor 

Tel: 03-33488041 

KTS CELLULAR SDN BHD 

Lot 1F-12, Shah Alam City 

Centre Mall 

Jalan Perbandaran 14/9 

Seksyen 14 


Selangor 

Tel: 03-55196988 

NEFION COMMUNICATIONS CENTRE 

Lot 40, Ground Floor 

Pandan Kapitol 

Jalan Pandan Utama 

Pandan Indah 


Tel: 03-42968288 

ORANGE MOBILE (M) SDN BHD 

No 8, Jalan 7/108C 

Taman Sungai Besi 


Tel: 03-79872337 


F18, Level 1 

Jusco Tmn Maluri 

Shopping Center 

Jalan Jejaka, Taman Maluri 

Cheras, 55100 Kuala Lumpur 

Tel: 03-79826722 


LOT 3-01, 3rd Floor 

VIVA Home 

No 85 Jalan Loke Yew 


Tel: 03-79828493 

ONE TO ONE COMMUNICATIONS 

SDN BHD 

Lot GC 006, Ground Floor 

Bukit Bintang Plaza 



Tel: 03-79877121 


SDN BHD 


Plaza OUG, Jalan Mega 

Tmn Overseas Union 

Off Jalan Klang Lama 


Tel: 03-79843211

292 


MAXIS 

EXCLUSIVE 

PARTNERS 

Continued 


SDN BHD 

No 61, Jalan SS2/75 


Selangor 

Tel: 03-78735887 


SDN BHD 


Selayang Mall, Jalan Su9 

Taman Selayang Utama 

68100 Batu Caves 

Selangor 

Tel: 03-79877121 


SDN BHD 

L2-08, Second Floor 

Tropicana City Mall 

No 3, Jalan 20/27 


Selangor 

Tel: 03-79877121 


No 90, Lorong Mamanda 1 

Ampang Point 

68000 Ampang 

Selangor 

Tel: 03-42511733 

PHONE STAR MARKETING SDN BHD 

No 5, Jalan PJS 8/5 

Bandar Sunway 


Selangor 

Tel: 03-56351878 

PLANTRONICS COMMUNICATIONS 

30, Jalan Murni 25/61 

Taman Sri Muda 


Selangor 

Tel: 03-51229966 

POWER VANTAGE CELLULAR 

SDN BHD 

No 61, Ground & 1st Floor 

Jalan USJ 10/1A, Taipan 

Triangle, UEP Subang Jaya 


Selangor 

Tel: 03-56377133 

P & D MOBILE CENTER SDN BHD 

LG 5, Lower Ground Floor 

Plaza Metro Kajang 

Jalan Tun Abdul Aziz 

43000 Kajang 

Selangor 

Tel: 03-87393799 

SPEED POWER MOBILEWORLD 

SDN BHD 

No 15, Jalan Maxwell 

48000 Rawang 

Selangor 

Tel: 03-60926266 

SPEED POWER MOBILEWORLD 

SDN BHD 

No 41, Jalan Meranti 1A 

Bandar Utama Batang Kali 

44300 Batang Kali 

Selangor 

Tel: 03-60571124 

SPEED DIAL SDN BHD 

Lot LG220, Lower Ground Floor 

Promenade, One Utama 

Shopping Complex 

No 1 Lebuh Bandar Utama 

Bandar Utama 


Selangor 

Tel: 03-77255686 

TAKACOM CELLULAR SDN BHD 


Berjaya Times Square 

No 1 Jalan Imbi 


Tel: 03-21413007 


Lot S-043B, 2nd Floor 

Mid Valley Mega Mall 

Lingkungan Syed Putra 


Tel: 03-22870255 


F13, Giant Hypermarket 

Bandar Kinrara 

Jalan BK 5A/1, Bandar Kinrara 

47100 Puchong 

Selangor 

Tel: 03-80701266 


Lot A30, Ground Floor 

Giant Hypermarket 

Shah Alam 

Lot 2, Persiaran Sukan 

Seksyen 13 


Selangor 

Tel: 03-21444079 


No A03, Ground Floor 


Lot 10243, Jalan Batu Caves 

Bandar Selayang 

68100 Selayang 

Selangor 

Tel: 03-21444079 


Lot F29, Giant Hypermarket 

Kota Damansara 

No 16, Jalan PJU5/1 


Selangor 

Tel: 03-21444079 


Lot F30, Giant Hypermarket 

Putra Heights 

Mukim Damansara 

Daerah Petaling 


Selangor 

Tel: 03-21444079

MAXIS BERHAD 


293 

THE HELLO STATION (M) SDN BHD 

Lot 2F-21B, 2nd Floor 

Bangsar Village II 

No 2, Jalan Telawi Satu 

Bangsar Baru 


Tel: 03-21411800 

THE HELLO STATION (M) SDN BHD 

Lot F137, 1st Floor 

Bangsar Shopping Centre 

285, Jalan Maarof 

Bukit Bandaraya 


Tel: 03-21411800 

UTAMA MOBILEWORLD (M) SDN BHD 

No 100, Jalan Dwitasik 

Dataran Dwitasik Bandar Sri Permaisuri 


Tel: 03-91731831 

WEB CATERPILLAR SDN BHD 

No 50, Jalan 2/23A 

Danau Kota 

Off Jalan Genting Kelang 


Tel: 03-41438828 

YES’S COMM ENTERPRISE SDN BHD 

Jusco Alpha Angle Shopping Centre 

F06A, 1st Floor 

Jalan R1 Seksyen 1 

Bandar Baru Wangsa Maju 


Tel: 03-41422006 


G 23 &24, Ground Floor 

Maju Junction Shopping Mall 

No 1001, Jalan Sultan Ismail 


Tel: 03-23002006 


M11, Bangi Utama Shopping Complex 

No 1, Jalan Medan Bangi 

(Business Park, Bangi Golf Resort) 

Off Persiaran Kemajuan 

Seksyen 6 

43650 Bandar Baru Bangi 

Selangor 

Tel: 03-42922000 

NORTHERN REGION 

ADVANCED SME SOLUTION PROVIDER 

No 218, Jalan Bercham 

31400, Ipoh 

Perak 

Tel: 05-5451296 

ADVANCED SME SOLUTION PROVIDER 

19, G/F, Jalan Ipoh 

31100 Sungai Siput 

Perak 

Tel: 05-5988012 

AIR TELECOMMUNICATION ENTERPRISE 

No 34, Jalan Murni 1 

Desa Murni Sungai Dua 

13800 Butterworth 

Pulau Pinang 

Tel: 04-3565895 

AST MOBILE PHONE CELULLAR 

No 46, Jalan Besar 

Kuala Kurau 

34350 Kuala Kurau 

Perak 

Tel: 05-7278223 

B S COMMUNICATION ENTERPRISE 

No 156, Jalan Siakap 

34300 Bagan Serai 

Perak 

Tel: 05-7217623 

BK TELECOMMUNICATION 

G 4 & 5, Ground Floor 

Star Parade 

Jalan Teluk Wanjah 


Kedah 

Tel: 04-7330331 

CABLEMASTER ENTERPRISE 

3A-G-32 & 33, Kompleks 

Bukit Jambul, Jalan Rumbia 

Sg Nibong Kecil 

11900 Bayan Lepas 

Pulau Pinang 

Tel: 04-6464068 

CABLEMASTER ENTERPRISE 

77-G-48 

Penang Times Square 

Jalan Dato Keramat 


Tel: 04-2288844 

CABLECOM ENTERPRISE 

332G-1, Jalan Perak 

Georgetown 


Tel: 04-2838333 

CHAMP TRADING & 

COMMUNICATION SYSTEMS 

GF-38, Central Square 

No 23, Jalan Kampung Baru 

08000 Sungai Petani 

Kedah 

Tel: 04-4311111 

CHAMP TRADING & 

COMMUNICATION SYSTEMS 

C66 & 67, Permatang Gedong 

Taman Sejati Indah 


Kedah 

Tel: 04-4315688 

CHAMP TRADING & COMMUNICATION 

SYSTEMS SDN BHD 

Village Mall G-K-1 

Jalan Lagenda 

Lagenda Heights 


Kedah 

Tel: 04-4211008 

D THREE MOBILE ENTERPRISE 

No 70B, Jalan Kuala Kangsar 

33000 Kuala Kangsar 

Perak 

Tel: 05-7772582 

D THREE MOBILE ENTERPRISE 

No 184, Jalan Tun Saban 

33300 Gerik 

Perak 

Tel: 05-7772582

294 


MAXIS 

EXCLUSIVE 

PARTNERS 

Continued 

DAILYQUICK COMMUNICATION 

Lot Gol 1, Aras Bawah 

Tesco Alor Star 

Jalan Lebuhraya Bahiyah 


Kedah 

Tel: 04-7723461 

DAFCOM ENTERPRISE 

Kompleks Changloon 

G-11, Tingkat Bawah 

06010 Changloon 

Kedah 

Tel: 04-9242744 

E-COMMUNICATION SDN BHD 

No 396 

Jalan Besar Tun Sardon 

11000 Balik Pulau 

Pulau Pinang 

Tel: 04-8666800 

E-COMMUNICATION SDN BHD 

288D-1-3, Fortune Court 

Jalan Thean Teik 

11500 Ayer Itam 

Pulau Pinang 

Tel: 04-8289000 

EXCLUSIVE TELECOMMUNICATION 

SDN BHD 

Lot G43A, Kinta City 

Shopping Centre, Jalan Teh 

Lian Swee Off Jalan Sultan 

Azlan Shah 

31400 Ipoh 

Perak 

Tel: 05-5428000 

EXCLUSIVE TELECOMMUNICATION 

SDN BHD 

G22, Tesco Kampar 

Jalan Perdana 

Taman Kampar Perdana 

31900 Kampar 

Perak 

Tel: 05-5428000 

E COM CENTRE 

No 22, Jalan Mahsuri 

Taman Wira Bandar 

35800 Slim River 

Perak 

Tel: 05-4520017 

EASYRING TRADING SDN BHD 

No 8, Jalan Selampit 

01000 Kangar 

Perlis 

Tel: 04-9776682 

EASYRING TRADING SDN BHD 

No 11, Jalan Syed Hussien 

02600 Arau 

Perlis 

Tel: 04-9781818 

FIVE STAR MOBILE ENTERPRISE 

G 29, Ground Floor 

Taiping Sentral 

Jalan Istana Larut 

34000 Taiping 

Perak 

Tel: 05-8053290 

FIVE STAR MOBILE ENTERPRISE 

No 76C, Tingkat Bawah 

Jalan Tupai 

34000 Taiping 

Perak 

Tel: 05-8062290 

GENTING NORTH TELEKOMUNIKASI 

Jerai Plaza, Lot 37 

No 1, Taman Jerai Maju 

08300 Gurun 

Kedah 

Tel: 04-4685001 

GOLDEN EAGLE TELECOMM 

ENTERPRISE 

No 21, Jalan Raja 

35000 Tapah 

Perak 

Tel: 05-4010828 

KEDAI TELEKOMUNIKASI YU YEE 

No 49, Sungai Batu 

34900 Pantai Remis 

Perak 

Tel: 05-677 3117 

KHAI SHAN ENTERPRISE 

No 9, Lorong Mara 

Pokok Sena 


Kedah 

Tel: 04-7825654 

LBL MULTI TRADING 

No 1, Jalan Keruing 

Kaw Perniagaan 

Simpang Ampat 

14100 Simpang Ampat 

Pulau Pinang 

Tel: 04-5681111 

LSY GOLD TELECOMMUNICATION 

SDN BHD 


Jalan Simpang Kuala 

Bandar Baru Simpang Kuala 


Kedah 

Tel: 04-7771688 

MEGA-STAR ENTERPRISE 

Megamall Pinang 


2828, Jalan Baru 

Bandar Perai Jaya 

13600 Seberang Perai Tengah 

Pulau Pinang 

Tel: 04-3900498 


Lot S21, 2nd Floor 

Sunway Carnival Mall 

3068 Jalan Todak 

Seberang Jaya 

13700 Prai 

Pulau Pinang 

Tel: 04-3900498 


No 111, Jalan Taiping 

34200 Parit Buntar 

Perak 

Tel: 04-3900498

MAXIS BERHAD 


295 

METRO COMM MARKETING ENTERPRISE 

No 71, Jalan Sultan Abdul Jalil 

30300 Ipoh 

Perak 

Tel: 05-2433288 

METRO COMM MARKETING ENTERPRISE 

No 35, Lebuh Dewangsa 

31000 Batu Gajah 

Perak 

Tel: 05-3651688 

MILLION TELE-COMMUNICATION 

SDN BHD 

No 80, Jalan Kampar 

30250 Ipoh 

Perak 

Tel: 05-2424333 

MILLION TELE-COMMUNICATION 

SDN BHD 


Medan Sibilin 

30300 Ipoh 

Perak 

Tel: 05-5261388 

MINITEL ENTERPRISE 

G-06, Jitra Mall 

06000 Jitra 

Kedah 

Tel: 04-9163533 

NETRA COMMUNICATION SDN BHD 

No 8, Jalan Teoh Moo Soo 

09000 Kulim 

Kedah 

Tel: 04-4901778 

NORTHERN POINT CELLULAR & 

ACCESSORIES 

G33-34, Ground Floor 

Prangin Mall-Komtar 

Jalan Dr Lim Chwee Leong 


Tel: 04-2632929 


ACCESSORIES 

170-3-15, Persiaraan Gurney 

3rd Floor Gurney Plaza 


Tel: 04-2103232 


ACCESSORIES 

G-25, Aeon Seberang Prai 

City Shopping Centre 

Bandar Perda 

14000 Bukit Mertajam 

Pulau Pinang 

Tel: 04-2103233 


ACCESSORIES 

Lot 1-2-08, Tesco Penang 

No 1, Lebuh Tengku Kudin 

Bandar Jelutong 

11700 Gelugor, Pulau Pinang 

Tel: 04-6595929 

NSS AUTOMATION TRADING 

27G, Jalan Intan 2 

Bandar Baru Teluk Intan 

36000 Teluk Intan 

Perak 

Tel: 05-6236439 

NSS AUTOMATION TRADING 

No 183, Taman Sitiawan 

Maju, Jalan Lumut 

32000 Sitiawan 

Perak 

Tel: 05-6914328 

OPTIMUS ENTERPRISE 

No 1205, Jalan Datuk Haji 

Ahmad Badawi 

13200 Kepala Batas 

Pulau Pinang 

Tel: 04-5780111 

PHONE GLOBAL ENTERPRISE 

No 136, Jalan Sukamari 

06700 Pendang 

Kedah 

Tel: 04-7712054 

POLYCALL SDN BHD 

No 104, Jalan Pandak Mayah 5 

Pekan Pandak Mayah, Kuah 


Kedah 

Tel: 04-9663388 

PUSAT KOMUNIKASI TM 

No 13, Jalan Bunga Raya 

35900 Tanjong Malim 

Perak 

Tel: 05-4583435 

QQ KEDAI TELEKOMUNIKASI 

No 13, Jalan Panggung Wayang 

35500 Bidor 

Perak 

Tel: 05-4342233 

RAYSON COMMUNICATION & TRADING 

6965, Jalan Ong Yi How 

12300 Butterworth 

Pulau Pinang 

Tel: 04-3329111 


Lot K, Ground Floor 

Tesco Extra Sungai Dua 

11700 Gelugor 

Pulau Pinang 

Tel: 04-5393888 


1F-39, Landmark Central 


No 1, Jalan KLC 1 

09000 Kulim 

Kedah 

Tel: 04-5393888 

STAPLE TRADING 


31450 Menglembu 

Perak 

Tel: 05-2826268

296 


MAXIS 

EXCLUSIVE 

PARTNERS 

Continued 

SUNMERRY TOP CENTRE 

No 4, Jalan Padang Matsirat 

Padang Matsirat 


Kedah 

Tel: 04-9668608 

SUN STAR COMMUNICATION SDN BHD 

No 23, Kedai Belakang KFC 

Jalan Pasar 

09100 Baling 

Kedah 

Tel: 04-4700199 

SUPER ENTERPRISE 

2A-6, Ground Floor 

Jalan Gamelan Indah 

Tmn Gamelan Indah 

Sg Bakap 

14200 Sungai Jawi 

Pulau Pinang 

Tel: 04-5828800 

TELE-WAY ENTERPRISE 

No 3742, Jalan Nuri 

Taman Sentosa 

14300 Nibong Tebal 

Pulau Pinang 

Tel: 04-5986666 

WEELY ENTERPRISE 

No 1824-G2 

Jalan Perusahaan Highway 

Auto City North South 

13600 Prai 

Pulau Pinang 

Tel: 04-5013555 


No 3086, Jalan Rozhan 

Pusat Perniagaan 

Taman Rozhan 


Pulau Pinang 

Tel: 04-5541555 



Jalan Padang Lallang 

Taman Mutiara 


Pulau Pinang 

Tel: 04-5381828 

YTS ENTERPRISE 

Lot No F24, First Floor 

C/O Tesco Manjung 

Lot 16051 Mukim Setiawan 

32040 Seri Manjung 

Perak 

Tel: 05-6913212 

EAST COAST 

ACETECH MARKETING 

No 48, Jalan Tun Razak 

27600 Raub 

Pahang 

Tel: 09-3552992 

AZ PERMATA NETWORK 

No 1, Bangunan 36 Unit 

Nadi Kota 

26400 Bandar Pusat Jengka 

Pahang 

Tel: 09-4676845 

CELLCORP SDN BHD 

Lot F/L 2A.7, Level T2A 

First World Hotel 

Genting Highlands Resort 

69000 Genting Highlands 

Pahang 

Tel: 03-64362118 

DTECH TELECOMMUNICATION & 

ACCESSORY 

MPKT 2256-K 

Bangunan SEDC 

Depan Pasir Manir 


Terengganu 

Tel: 09-6154305 

EXTRA CLEAR TELECOMMUNICATION 

No 71, Jalan Ah Peng 

28700 Bentong 

Pahang 

Tel: 09-2232854 

FONPOINT ENTERPRISE 

PT 453, Jalan Tasek 

17500 Tanah Merah 

Kelantan 

Tel: 09-7900627 

FONPOINT FONCARE ENTERPRISE 

SDN BHD 

No 2.23A, KB Mall 

Jalan Hamzah 


Kelantan 

Tel: 09-7477577 

GM TELESHOP & TRADING 

PT 8338, Taman Wangsa Mewangi 

Bandar Baru Gua Musang 

18300 Gua Musang 

Kelantan 

Tel: 09-9120080 

IMPACT TEL ENTERPRISE 


27200 Kuala Lipis 

Pahang 

Tel: 09-3121088 

KG LOW TRADING 

No 2, Jalan Haji Kassim 

Mentakab 

28400 Mentakab 

Pahang 

Tel: 09-2778012 

KG LOW TRADING 

B306, Jalan Berserah 

25300 Kuantan 

Pahang 

Tel: 09-5667900 

KNJ TELECOMMUNICATIONS 

PT 232, Jalan Kamaruddin 

22000 Jerteh 

Terengganu 

Tel: 09-6975171 

LAN PTR ENTERPRISE 

No 2, Depan Bank Islam 

Seksyen 1 

16800 Pasir Puteh 

Kelantan 

Tel: 09-7866668 

LIFETIME NETWORK 

Lot 803 L, Simpang 3 

Pengkalan Chepa 


Kelantan 

Tel: 09-7745526

MAXIS BERHAD 


297 

LIFETIME NETWORK 

PT1719, Jalan Raja Perempuan Zainab 2 

Bandar Baru Kubang Kerian 


Kelantan 

Tel: 09-7460202 

L.P COM SALES & SERVICE 

201-A, Jalan Sultan Zainal Abidin 


Terengganu 

Tel: 09-6239339 

MF TELE STATION 

Lot G.03, Ground Floor 

Berjaya Permai Megamall 

25000 Kuantan 

Pahang 

Tel: 09-5161771 

RAH TELE SERVICE ENTERPRISE 

B18, Lorong 1M 5/2 

Bandar Indera Mahkota 

25200 Kuantan 

Pahang 

Tel: 09-5738489 

SPEED COMMUNICATIONS CENTRE 

No 6, Jalan Tun Ismail 

25000 Kuantan 

Pahang 

Tel: 09-5138128 



Kuantan Parade 

Jalan Haji Abdul Rahman 

25000 Kuantan 

Pahang 

Tel: 09-5138128 


East Coast Mall 

Lot No L2-40, Jalan Putra Square 6 

Putra Square 

25200 Kuantan 

Pahang 

Tel: 09-5138128 


B8 (A), Lot 5197 

Jalan Tanah Putih 

Seksyen 124 

Mukim Kuantan 

25150 Kuantan 

Pahang 

Tel: 09-5138113 


No 49, Jalan Ahmad Shah 1 

Lurah Temerloh 

28000 Temerloh 

Pahang 

Tel: 03-21444079 

TCT SALES & SERVICES SDN BHD 

KCP 43 

Kemaman Centre Point 

Fasa 1 Jalan Limbong 

24000 Kemaman 

Terengganu 

Tel: 09-8582862 

THE ONE MOBILE SDN BHD 

G-18 & G-19 



Terengganu 

Tel: 09-2901818 

WW TELE COMMUNICATION 

ENTERPRISE 


Cameron Highlands 

39000 Tanah Rata 

Pahang 

Tel: 05-4915733 

SOUTHERN REGION 

ASIATEL TECHNOLOGY SDN BHD 

No 1, Jalan Sialang, Tangkak 

84900 Tangkak 

Johor 

Tel: 06-9788877 

B JAYA TELECOMMUNICATIONS 

SU 1441, Jalan Masjid Tanah Ria Utama 

Taman Masjid, Tanah Ria 

78300 Masjid Tanah 

Melaka 

Tel: 06-3845005 

CINITRON TELE & ELECTRIC 

No 10, Jalan Dato Rauf 

86000 Kluang 

Johor 

Tel: 07-7768222 


F14, 1st Floor Kluang Parade 

No 2, Jalan Sentol 

86000 Kluang 

Johor 

Tel: 07-7711919 



83700 Yong Peng 

Johor 

Tel: 07-4677611 


Lot No 7, Ground Floor 

Tesco Melaka 

No 1 Jalan Tun Abdul Razak 

Peringgit 

75400 Melaka 

Tel: 012-2653243 

COSMOS COMMUNICATIONS 

No 97-3, Jalan Rahmat 


Johor 

Tel: 07-4383000 

DENWAKI TRADING 

No 60, Jalan Tengah 

Bukit Bakri 

84200 Muar 

Johor 

Tel: 06-9868687 

FRIENDSHIP TELECOMMUNICATION 

SDN BHD 

No 40, Jalan Perwira 1 

Taman Ungku Tun Aminah 

Skudai 


Johor 

Tel: 07-5563633

298 


MAXIS 

EXCLUSIVE 

PARTNERS 

Continued 

GALAXY PHONE (M) SDN BHD 

A9, Giant Hypermarket Tampoi 

Lot 54, Jalan Skudai, Tampoi 


Johor 

Tel: 07-3326393 

G-ONE COMMUNICATION SDN BHD 

No 7, Jalan Suria 3 

Bandar Baru Seri Alam 

81750 Masai 

Johor 

Tel: 07-2526733 


S48, 2nd Floor 

Jusco Aeon Shopping Centre 

Taman Bukit Indah 


Johor 

Tel: 07-2328815 


No 151, Jalan Sutera 

Taman Sentosa 


Johor 

Tel: 07-3338555 


F47, Jusco Seremban 2 



Negeri Sembilan 

Tel: 06-6017601 

LE VANTAGE CELLULAR COMM 

SDN BHD 


Tesco Desa Tebrau 

H.S (D) 439286, Lot PTD 

140212 Mukim Tebrau 


Johor 

Tel: 07-3578728 

LE VANTAGE CELLULAR COMM 

SDN BHD 

No 9, Jalan Permas 10/1 

Bandar Baru Permas Jaya 


Johor 

Tel: 07-3863086 

LT PHONE CENTRE 

No 78, Jalan Omar, Muar 

84150 Parit Jawa 

Johor 

Tel: 06-9873115 

MIX MOBILE TELECOMMUNICATIONS 

(M) SDN BHD 

No 10, Jalan Delima Raya 1 

Taman Delima Raya 

Bukit Baru 

75150 Melaka 

Tel: 06-2311311 

MIX MOBILE TELECOMMUNICATIONS 

(M) SDN BHD 


Tampin Pos 

73000 Tampin 


Tel: 06-4413282 

M TEL MOBILE & SERVICES 

No 18, Jalan Dedap 20 

Taman Johor Jaya 


Johor 

Tel: 07-3513135 

MU COMMUNICATIONS CENTRE 

SH47, Jalan Besar 

81500 Pekan Nenas 

Johor 

Tel: 07-6992131 

NANG HONG COMM SDN BHD 

No 129, Jalan Dato’ Bandar 

Tunggal, 70000 Seremban 


Tel: 06-7676555 

NANG HONG COMM SDN BHD 

PT 7458(G), Jalan BBN 1/1A 

Putra Point Phase 1 

71800 Nilai 


Tel: 06-7991999 

NET TWO COMMUNICATIONS 

No 10, Jalan Kasih 1 

Taman Kasih 

86200 Simpang Rengam 

Johor 

Tel: 07-7555522 

ONE O ONE DIGITAL STATION 


72100 Bahau 


Tel: 06-4546068 

ONE TWO CALL 

TELECOMMUNICATIONS 


Kompleks Melaka Mall 

Leboh Ayer Keroh 

75450 Air Keroh 

Melaka 

Tel: 06-2324333 

PD TELE-ZONE 

No 37, Raja Aman Shah 

71000 Port Dickson 


Tel: 06-6464696 

SEGAMAT TIAN HUAT SDN BHD 

No 1, Jalan Batu Anam 

73400 Gemas 


Tel: 07-9326326 


No 104, Jalan Genuang 

Susur Satu 

85000 Segamat 

Johor 

Tel: 07-9326326 


No 9, Jalan Syed Abdul Kadir 

Susur Satu 

85000 Segamat 

Johor 

Tel: 07-9319139 

SHINING TELECOMMUNICATION 

SDN BHD 

Lot 1.23, Plaza Pelangi 

Jalan Kuning, Taman Pelangi 


Johor 

Tel: 07-3330900

MAXIS BERHAD 


299 


SDN BHD 

G63, Ground Floor, IOI Mall 

Bandar Putra, Lebuh Putra 

Utama Bandar Putra 

81000 Kulai 

Johor 

Tel: 07-5985988 


SDN BHD 

Lot JK2-05, Level 2 

Johor Bahru City Square 


Johor 

Tel: 07-2265911 


SDN BHD 

L2-211/212, Sutera Mall 

Jalan Sutera Tanjung 8/4 

Taman Sutera Utama 


Johor 

Tel: 07-5581588 


SDN BHD 

Lot M41, Tesco Kulai 

No 52, Tmn Desamas 

Bt 221/2 

Jalan Kulai Air Hitam 

81000 Kulai 

Johor 

Tel: 07-6635455 

STAR FIVE MOBILE PHONE 

No 9, Jalan Bistari 4/1 

Taman Yayasan 

85000 Segamat 

Johor 

Tel: 07-9443233 

STEVEN TELE-WORLD CENTRE SDN BHD 

No 75-3, Jalan Arab 

84000 Muar 

Johor 

Tel: 06-9542282 

STEVEN TELE-WORLD CENTRE SDN BHD 

FG-27, Ground Floor 

Dataran Pahlawan 

Melaka Megamall 

Jalan Merdeka, Bandar Hilir 

75000 Melaka 

Tel: 06-2815282 

SUPERIOR MOBILE SDN BHD 

22A, Jalan Kundang 4 

Taman Bukit Pasir 


Johor 

Tel: 07-4347575 


No 2, Jalan 4 

Taman Kristal 2 

86400 Parit Raja 

Johor 

Tel: 07-4542222 

SUPERIOR MOBILE (PONTIAN) SDN BHD 

No 182, Jalan Bakek 

82000 Pontian 

Johor 

Tel: 07-6883388 


Lot B16 

Giant Plentong Hypermarket 

Jalan Masai Lama 

81750 Masai 

Johor 

Tel: 07-3517575 

T & T TELECOMMUNICATIONS 

No 1, Jalan Gambir 5 

Bandar Baru Bukit Gambir 

84800 Bukit Gambir 

Johor 

Tel: 06-9766012 

UNI PACIFIC 

46-G, Jalan TKS 7 

Senawang Commercial Centre 



Tel: 06-6781279 


No 13, Jalan Niaga Utama 

81900 Kota Tinggi 

Johor 

Tel: 07-8838831 


No 19, Jalan Kebudayaan 

Taman Universiti, Skudai 


Johor 

Tel: 07-5201833 

WEE SHIEN SDN BHD 

G8, Block Dahlia Jalan Zahir 

No 6, Taman Malim Jaya 

75300 Melaka 

Tel: 06-3358006 


No 32, Jalan Merdeka 

Taman Melaka Raya 

75000 Melaka 

Tel: 06-2815006 


GB-01, Jalan Lingkaran MITC 

Pasaraya Besar Mydin 

75450 Air Keroh 

Melaka 

Tel: 012-3458502 

WH TOP ENTERPRISE 

No 31, Jalan Abu Bakar 

86800 Mersing 

Johor 

Tel: 07-7998826 

YES TELESHOP 

No 47, Jalan Intan 2/2 

Taman Intan 

86000 Kluang 

Johor 

Tel: 07-7722313

300 


MAXIS 

EXCLUSIVE 

PARTNERS 

Continued 

SABAH 

ATURFAX MARKETING & SERVICES 


Jalan Perbandaran 

Karim Estate 

91000 Tawau 

Sabah 

Tel: 089-763000 

CDJ TELECOMMUNICATION SERVICES 

Ground Floor, Block 3 

Lot 6, Bandar Indah 

Mile 5, P.O.Box 1294 

90714 Sandakan 

Sabah 

Tel: 089-273311 

EVO MARKETING 

Lot G38(A), Ground Floor 

Kompleks Karamunsing 


Sabah 

Tel: 088-272012 

LABUAN PHONE SHOP SDN BHD 

UO413, Ground Floor 

Jalan Bunga Dahlia 

Wilayah Persekutuan 

87000 Labuan 

Tel: 087-422866 

MY MOBILE COMMUNICATION 

SDN BHD 

1 FA & 1 FB 

1st Floor Centre Point 


Sabah 

Tel: 088-447140 

SARAWAK 

DES COMMUNICATION SDN BHD 


Tabuna Height Commercial Centre 

93350 Kuching 

Sarawak 

Tel: 082-573012 

ERITEL TELECOMMUNICATIONS CO 

Ground Floor, Shop Lot 1555 

No 40, Jalan Keranji, Sibu 

96000 Sibu 

Sarawak 

Tel: 084-322446 

ERITEL TELECOMMUNICATIONS 

(CENTRAL PARK) SDN BHD 

No 234, Lot 2596 

Central Park Commercial 

Centre, 3rd Mile 

93250 Kuching 

Sarawak 

Tel: 082-255522 

METEOR TRADING CO 

G.10B, Ground Floor 

Kenyalang Theatre & 

Commercial Complex 

Kenyalang Park 

93300 Kuching 

Sarawak 

Tel: 082-331911 

MOBILE 2000 


Jalan Bintulu-Miri, Medan 

Jaya Commercial Centre 

97000 Bintulu 

Sarawak 

Tel: 086-314939 

MY COMPUTER SHOP SALES & SERVICE 


Pelita Commercial Centre 

98000 Miri 

Sarawak 

Tel: 085-433012 

RITA AGENCY SDN BHD 

L1-05, Dubs Comm/Office Complex 

Lot 376, Section 54 

93100 Kuching 

Sarawak 

Tel: 082-232506 

TNT TELECOMMUNICATIONS 


Jalan Sekolah Off Yu Seng Rd 

98000 Miri 

Sarawak 

Tel: 085-438731

MAXIS BERHAD 


301 


NOTICE OF 

ANNUAL GENERAL 

MEETING 

NOTICE IS HEREBY GIVEN THAT the Third Annual General Meeting of MAXIS BERHAD (the Company) will be held on Thursday, 31 

May 2012 at 10.00 a.m. at the Grand Ballroom, 1st Floor, Sime Darby Convention Centre, 1A Jalan Bukit Kiara 1, 60000 Kuala Lumpur, 

Malaysia for the following purposes: 

AGENDA 

1 To consider the Audited Financial Statements of the Company and of the Group for the financial year ended 

31 December 2011 and the Reports of the Directors and Auditors thereon. Please refer to Note A. 

2 To declare a final single-tier tax-exempt dividend of 8 sen per ordinary share for the financial year ended 31 


3 To re-elect the following Directors who retire pursuant to Article 114(1) of the Company’s Articles of 

Association and who being eligible, have offered themselves for re-election: 

(i) Ghassan Hasbani 

(ii) Dr Fahad Hussain S. Mushayt 

(iii) Sandip Das 

Please refer to Note B. 

4 To re-appoint Messrs PricewaterhouseCoopers (PwC) as Auditors of the Company to hold office from 

the conclusion of this meeting until the conclusion of the next annual general meeting and to authorise the 

Directors to fix their remuneration. Please refer to Note C. 

Resolution 1 

Resolution 2 

Resolution 3 

Resolution 4 

Resolution 5 

NOTICE OF DIVIDEND PAYMENT 

NOTICE IS HEREBY GIVEN THAT subject to the approval of shareholders at the Third Annual General Meeting to be held on 31 May 

2012, a final single-tier tax-exempt dividend of 8 sen per ordinary share for the financial year ended 31 December 2011 will be paid 

on 22 June 2012 to Depositors registered in the Record of Depositors at the close of business on 8 June 2012. 

A Depositor shall qualify for entitlement to the dividend only in respect of: 

(a) shares transferred to such Depositor’s securities account before 4.00 p.m. on 8 June 2012 in respect of transfers; and 

(b) shares bought on Bursa Malaysia Securities Berhad on a cum entitlement basis according to the Rules of Bursa Malaysia Securities 

Berhad. 

BY ORDER OF THE BOARD 

DIPAK KAUR 

LS 5204 


2 May 2012 

Kuala Lumpur

302 


NOTICE OF 

ANNUAL GENERAL 

MEETING 

Continued 

Notes: 

A. This Agenda item is meant for discussion only as under the provisions of Section 169(1) of the Companies Act, 1965 (Act) and the Company’s Articles of Association, 

the audited accounts do not require the formal approval of shareholders and hence, the matter will not be put forward for voting. 

B. The Directors, Ghassan Hasbani, Dr Fahad Hussain S. Mushayt and Sandip Das are standing for re-election as Directors of the Company. The Board of Directors (the 

Board) has considered the assessment of the three Directors and collectively agree that they meet the criteria of character, experience, integrity, competence and time 

to effectively discharge their respective roles as Directors, as prescribed by Para 2.20A of the MMLR. The profiles of the Directors, Ghassan Hasbani, Dr Fahad Hussain 

S. Mushayt and Sandip Das, are set out on pages 26, 27 and 29 of this Annual Report. 

C. The Audit Committee and Board have considered the re-appointment of PwC as Auditors of the Company and collectively agree that PwC meets the criteria of the 

adequacy of experience and resources of the firm and the person assigned to the audit as prescribed by Para 15.21 of MMLR. 

Proxy 

1. A member of the Company entitled to attend and vote at this meeting is entitled to appoint one or more proxies to attend and vote for him/her provided that the 

number of proxies appointed shall not be more than two except in the circumstances set out in notes 2 and 3. A proxy may but need not be a member of the Company. 

There shall be no restriction as to the qualification of a proxy and the provision of section 149(1)(b) of the Act shall not apply to the Company. 

2. Where a member of the Company is also a substantial shareholder (within the meaning of the Act) per the Record of Depositors, such member shall be entitled to 

appoint up to (but not more than) five proxies. For an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial owners in one 

securities account (omnibus account), there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of each omnibus account 

it holds. 

3. Where a member of the Company is an authorised nominee, it may appoint at least one proxy in respect of each securities account it holds to which ordinary shares in 

the Company are credited. Each appointment of proxy by an authorised nominee shall be by a separate instrument of proxy which shall specify the securities account 

number and the name of the beneficial owner for whom the authorised nominee is acting. 

4. The instrument appointing a proxy shall: 

(i) in the case of an individual, be signed by the appointor or by his/her attorney; and 

(ii) in the case of a corporation, be either under its common seal or signed by its attorney or by an officer on behalf of the corporation. 

5. Where a member appoints more than one proxy, the appointment shall be invalid unless he/she specifies the proportions of his/her holdings to be represented by each 

proxy. 

6. The instrument appointing a proxy must be deposited at the office of our Company’s Share Registrar, Symphony Share Registrars Sdn Bhd at Level 6, Symphony House, 

Block D13, Pusat Dagangan Dana 1, Jalan PJU 1A/46, 47301 Petaling Jaya, Selangor, Malaysia, not less than 48 hours before the time appointed for holding the 

meeting or adjourned meeting or in the case of a poll, not less than 24 hours before the time appointed for the taking of the poll; otherwise the instrument of proxy 

shall not be treated as valid and the person so named shall not be entitled to vote in respect thereof. Fax copies of the duly executed form of proxy are not acceptable. 

7. A proxy may vote on a show of hands and on a poll. If the form of proxy is returned without an indication as to how the proxy shall vote on any particular matter, the 

proxy may exercise his discretion as to whether to vote on such matter and if so, how. 

8. A proxy appointed to attend and vote at the meeting shall have the same rights as the member to speak at the meeting. 

9. The lodging of a form of proxy does not preclude a member from attending and voting in person at the meeting should the member subsequently decide to do so. 

Members Entitled to Attend 

For purposes of determining a member who shall be entitled to attend the Third Annual General Meeting, the Company shall be requesting Bursa Malaysia Depository Sdn 

Bhd, in accordance with Article 81(b) of the Company’s Articles of Association and Section 34(1) of the Securities Industry (Central Depositories) Act 1991, to issue a General 

Meeting Record of Depositors as at 25 May 2012. Only a depositor whose name appears on the General Meeting Record of Depositors as at 25 May 2012 shall be entitled 

to attend the said meeting or appoint a proxy(ies) to attend and/or vote on such depositor’s behalf. 

Toll-Free Line and Email Address 

A toll-free line and an email account have been set up to attend to all queries from shareholders pertaining to the Form of Proxy and all other matters relating to the Third 

Annual General Meeting. The toll-free number is 1800 828 001 and the email address is agm2012@maxis.com.my. These will be valid from 2 May 2012 to 8 June 2012.

NOTES

NOTES


(867573-A) 

(Incorporated in Malaysia) 

Annual Report 2011 

FORM OF 

PROXY 

If appointment of proxy is under hand 

Signed by *individual member/*officer 

or attorney of member/*authorised 

nominee of 

No. of shares held: 

Securities Account No.: 

(CDS Account No.) 

Date : 

(Compulsory) 

The proportions of *my/*our holding 

to be represented by *my/*our proxies 

are as follows: 

First Proxy 

No. of Shares: 

(beneficial owner) 

Percentage: % 

*I/*We 

*NRIC (new and old)/*Passport/*Company No 

(FULL NAME OF A MEMBER IN BLOCK LETTERS AS PER *IDENTITY CARD/*PASSPORT/*CERTIFICATE OF INCORPORATION) 

(COMPULSORY : NEW AND OLD) 

of 

(ADDRESS) 

telephone no. 

being a member of Maxis Berhad (“the Company”), hereby appoint 

If appointment of proxy is under seal 

The Common Seal of 

was hereto affixed in accordance 

with its Articles of Association in the 

presence of: 

No. of shares held: 

Seal 

Second Proxy 


Percentage: % 

(FULL NAME OF A PROXY IN BLOCK LETTERS AS PER *IDENTITY CARD/*PASSPORT) 

of 

(ADDRESS) 

and/or 


of 

(ADDRESS) 

*NRIC/*Passport No 


(COMPULSORY) 

(COMPULSORY) 

Director 

*Director/*Secretary 

in its capacity as *member/*attorney 

of member/ *authorised nominee of 

(beneficial owner) 

Securities Account No.: 

(CDS Account No.) 

Date : 

(Compulsory) 

Only in the case of a member who is a substantial shareholder/exempt authorised nominee 

and/or 


of 

(ADDRESS) 

and/or 


of 

(ADDRESS) 

and/or 


of 

(ADDRESS) 




(COMPULSORY) 

(COMPULSORY) 

(COMPULSORY) 

or failing *him/*her, THE CHAIRMAN OF THE MEETING as *my/*our proxy/*proxies to vote for *me/*us and on *my/*our behalf 

at the Third Annual General Meeting of the Company to be held on 31 May 2012 at 10.00 a.m. at the Grand Ballroom, 1st Floor, 

Sime Darby Convention Centre, 1A Jalan Bukit Kiara 1, 60000 Kuala Lumpur, Malaysia and at any adjournment thereof. *I/*We 

indicate with an “ “ or “ “ in the spaces below how *I/*we wish *my/*our vote to be cast: 

AGENDA 

1 To consider the Audited Financial Statements and the Reports of Directors and Auditors thereon 

ORDINARY RESOLUTIONS FOR AGAINST 

2 Declaration of final dividend (Resolution 1) 

3(i) Re-election of Ghassan Hasbani (Resolution 2) 

3(ii) Re-election of Dr Fahad Hussain S. Mushayt (Resolution 3) 

3(iii) Re-election of Sandip Das (Resolution 4) 

4 Re-appointment of Auditors (Resolution 5) 

Subject to the abovestated voting instructions, *my/*our proxy may vote or abstain from voting on any resolution as *he/*she/*they 

may think fit. 

Only in the case of a member 

who is a substantial shareholder/ 

exempt authorised nominee 

The proportions of *my/*our holding 

to be represented by *my/*our proxies 

are as follows: 

Third Proxy 


Percentage: 

Fourth Proxy 


Percentage: 

Fifth Proxy 


Percentage: 

% 

% 

% 

Notes to Form of Proxy: 

1. A member of the Company entitled to attend and vote at this meeting is entitled to appoint one or more 

proxies to attend and vote for him/her provided that the number of proxies appointed shall not be more 

than two except in the circumstances set out in notes 2 and 3. A proxy may but need not be a member of 

the Company. There shall be no restriction as to the qualification of a proxy and the provision of section 

149(1)(b) of the Companies Act, 1965 (“Act”) shall not apply to the Company. 

2. Where a member of the Company is also a substantial shareholder (within the meaning of the Act) per the 

Record of Depositors, such member shall be entitled to appoint up to (but not more than) five proxies. For 

an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial owners 

in one securities account (“omnibus account”), there is no limit to the number of proxies which the exempt 

authorised nominee may appoint in respect of each omnibus account it holds. 

3. Where a member of the Company is an authorised nominee, it may appoint at least one proxy in respect of 

each securities account it holds to which ordinary shares in the Company are credited. Each appointment of 

proxy by an authorised nominee shall be by a separate instrument of proxy which shall specify the securities 

account number and the name of the beneficial owner for whom the authorised nominee is acting. 

4. The instrument appointing a proxy shall : 

i) in the case of an individual, be signed by the appointor or by his/her attorney; and 

ii) in the case of a corporation, be either under its common seal or signed by its attorney or by an officer 

on behalf of the corporation. 

5. Where a member appoints more than one proxy, the appointment shall be invalid unless he/she specifies 

the proportions of his/her holdings to be represented by each proxy. 

6. The instrument appointing a proxy must be deposited at the office of our Company’s share registrar, 

Symphony Share Registrars Sdn Bhd at Level 6, Symphony House, Block D13, Pusat Dagangan Dana 1, Jalan 

PJU 1A/46, 47301 Petaling Jaya, Selangor, Malaysia, not less than 48 hours before the time appointed for 

holding the meeting or adjourned meeting or in the case of a poll, not less than 24 hours before the time 

appointed for the taking of the poll; otherwise the instrument of proxy shall not be treated as valid and the 

person so named shall not be entitled to vote in respect thereof. Fax copies of the duly executed form of 

proxy are not accepted. 

7. A proxy may vote on a show of hands and on a poll. If the form of proxy is returned without an indication 

as to how the proxy shall vote on any particular matter, the proxy may exercise his discretion as to whether 

to vote on such matter and if so, how. 

8. A proxy appointed to attend and vote at the meeting shall have the same rights as the member to speak at 

the meeting. 

9. The lodging of a form of proxy does not preclude a member from attending and voting in person at the 

meeting should the member subsequently decide to do so. 

MEMBERS ENTITLED TO ATTEND 

For purposes of determining a member who shall be entitled to attend the Third Annual General Meeting, the Company shall be requesting Bursa 

Malaysia Depository Sdn Bhd, in accordance with Article 81(b) of the Company’s Articles of Association and Section 34(1) of the Securities Industry (Central 

Depositories) Act 1991, to issue a General Meeting Record of Depositors as at 25 May 2012. Only a depositor whose name appears on the General Meeting 

Record of Depositors as at 25 May 2012 shall be entitled to attend the said meeting or appoint a proxy(ies) to attend and/or vote on such depositor’s behalf. 

TOLL-FREE LINE and email address 

A toll-free line and an email account have been set up to attend to all queries from shareholders pertaining to the Form of Proxy and all other matters relating 

to the Third Annual General Meeting. The toll-free number is 1800 828 001 and the email address is agm2012@maxis.com.my. These will be valid from 

2 May 2012 to 8 June 2012. 

* delete if inappropriate

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STAMP 



c/o Symphony Share Registrars Sdn Bhd 378993-D 




47301 Petaling Jaya, Selangor 

Malaysia 

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equest 

form 

Dear Shareholder, 

We are pleased to inform you that the Bahasa Malaysia version of the Maxis Berhad Annual 

Report 2011 is available on request. If you wish to receive a copy, please complete this form 

and return it to us by 23 May 2012. 

Pemegang Saham Yang Dihormati, 

Dengan sukacitanya, kami ingin memaklumkan bahawa Laporan Tahunan Maxis Berhad 

2011 dalam Bahasa Malaysia akan dihantar atas permintaan Tuan/Puan. Jika Tuan/Puan 

ingin menerimanya, sila lengkapkan maklumat di bawah dan kembalikan kepada kami 

sebelum 23 Mei 2012. 

Please send me/us a copy of the Maxis Berhad Annual Report 2011 in Bahasa Malaysia. 

Sila hantar kepada saya/kami senaskah Laporan Tahunan Maxis Berhad 2011 dalam Bahasa Malaysia. 

Name/Nama: 

Address/Alamat: 

Signature of Shareholder/ 

Tandatangan Pemegang Saham 

Fax No: (603) 7841 8008

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STAMP 



c/o Symphony Share Registrars Sdn Bhd 378993-D 




47301 Petaling Jaya, Selangor 

Malaysia 

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ENRICHING LIVES EXPANDING HORIZONS - Maxis

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