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ENRICHING LIVES EXPANDING HORIZONS - Maxis

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MAXIS BERHAD<br />

ANNUAL REPORT 2011<br />

63<br />

The Company has focused on resource efficiency and carbon management,<br />

achieving a 13.7% improvement in the energy efficiency of our operations and<br />

avoiding four tonnes of CO 2<br />

emission. We also planted over 7,000 Mahang<br />

seedlings at a one-for-one ratio for every base transmission station as part of our<br />

efforts to reduce our carbon footprint.<br />

Last year, we undertook an exercise in Uplifting <strong>Maxis</strong> Corporate Responsibility (CR)<br />

Practices where we assessed our CR practices, defined a high-level CR strategy and<br />

formalised the reporting of our CR performance. We now have a framework and<br />

governance structure that aligns our CR practices to create value and impact in<br />

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

covering aspects that go beyond just social contributions to encompass our practices<br />

in the marketplace, workplace, community and the environment. Our CR pledge is to<br />

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

to harnessing the power of telecommunications technology to address the needs of<br />

society and enrich lives. We are already making a positive impact on so many lives<br />

through our services.<br />

Positive Outlook<br />

The current outlook for the Malaysian economy remains steady despite uncertainties in<br />

the global markets. The overall demand for telecommunications services is expected to<br />

remain strong.<br />

The future growth of the industry is underpinned by the ever-growing demand for<br />

advanced data and broadband services, particularly among the Malaysian youth<br />

with their pronounced appetite for social networking, content and applications and<br />

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

Smartphone penetration in Malaysia is already at 23% as at end of 2011 and will<br />

continue to increase driven by technology-savvy Gen Y consumers and declining<br />

smartphone prices. Simultaneously, as the digital divide is being rapidly bridged,<br />

new subscriptions will emerge from underserved geographies and segments.<br />

In terms of key risks for the industry, mobile operators across the world are considering<br />

the ramifications arising from non-traditional players. Already in some western markets,<br />

social messaging and over-the-top voice over IP and instant messaging applications are<br />

starting to cause shifts in communication patterns resulting in some cannibalisation of<br />

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

messaging on usage levels. While SMS messaging could slow down over time, mobile<br />

internet remains one of the key revenue growth drivers for the industry and should<br />

compensate for the decline in traditional revenues.<br />

<strong>Maxis</strong>’ Corporate Responsibility<br />

programmes aim to make a<br />

positive impact. At the Hari<br />

Raya Open House, <strong>Maxis</strong> hosted<br />

underprivileged children and<br />

senior citizens and presented<br />

contributions to needy homes.<br />

We expect the operating environment to remain competitive with sustained pressure<br />

on revenue growth and profitability. As <strong>Maxis</strong>, we will continue to focus on innovative<br />

product offerings, integrated propositions, delivering a superior customer experience as<br />

well as driving operational efficiency and network utilisation.

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