TELEKOM MALAYSIA IMPLEMENTS MANPOWER RATIONALIZATION PROGRAMME FOR THE GROUP

Telekom Malaysia Berhad (Telekom Malaysia) today announced a Voluntary Separation Scheme (VSS) to all eligible staff of the Group as part of its manpower rationalization programme.

The VSS, which will be implemented Group-wide will be offered across all levels of staff. Telekom Malaysia's current workforce stands at 30,500.

In a statement released today, Telekom Malaysia explained that the VSS is a mutually beneficial scheme for both the staff and the Company. For the staff, it gives them the option to pursue alternative career with other organization or start their own business by terminating their services with the Company and receiving a fair and equitable compensation. For the Company, it gives Telekom Malaysia an avenue to optimize its manpower utilization, increase its operational efficiency and productivity, and overall competitiveness.

This manpower rationalization exercise is part of the overall 5 broad strategies announced in September last year aimed at making the Group more profit-oriented and efficient. Based on a study conducted, Telekom Malaysia has one of the largest number of staff in comparison to other telco players in the region. The VSS will enable Telekom Malaysia to benchmark its cost and efficiency against other telco players.

With the VSS, Telekom Malaysia is taking another step forward in making the Company more competitive. Going forward, productivity and efficiency of staff need to be significantly increased. Post VSS, staff must be prepared for a new environment that leverages on diversity, multi-tasking and focus on deepening professionalism and other competencies.

The offer of VSS by Telekom Malaysia to its staff has taken into account due process in compliance with the law and regulations and best practices of other local companies. It also has taken into account the views expressed by all the relevant parties including Union leaders. This is a voluntary scheme. While it opens up possibilities for staff for careers outside the Company, staff still have the option to continue working with the Company if they choose to.

To facilitate implementation and to ensure concerns of staff on the VSS are appropriately addressed, Telekom Malaysia will undertake various supporting programmes for staff which include briefings and Question & Answers sessions with all staff, Frequently Asked Questions (FAQ) on VSS on intranet, VSS Enquiry Service for staff via e-mail, phone or face-to-face provided by Group Human Resource and Career Transition Support Programmes for successful applicants of the VSS.

The Career Transition Support Programmes will assist employees who are leaving the Company manage their transition period, chart career directions and start lives in a new and shortest time. The programme has 4 modules; Getting Ready for the Challenge Ahead, Money Matters, New Beginning and Going into Business. Based on initial feedback, up to 10% of employees are expected to take up the VSS. The VSS is expected to be completed by end of April 2005.

About Telekom Malaysia
Telekom Malaysia (TM), a leading regional information and communications group, offers a comprehensive range of communication services and solutions in fixed-line, mobile, data and broadband. As one of the largest listed companies on Bursa Malaysia with an operating revenue of more than RM13 billion, Telekom Malaysia is driven to deliver value to its stakeholders in a highly competitive environment.

The Group places emphasis on continuing customer service quality enhancements and innovations. Currently, with investments and operations in 12 countries around Asia and globally, Telekom Malaysia is focused on sustainable growth in both the local and international markets.

For further information on Telekom Malaysia, visit www.telekom.com.my.

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