the ability to allow digital services providers
to develop products and services, reach a
greater customer base and further ignite the
growth of the digital economy.
ADVANCING ASIA: OUR SOCIAL ROLE
Axiata continues to be unwavering in its
broader vision of Advancing Asia by bringing
together technology, connectivity and people.
This we continue to drive from both a business
and sustainability perspective.
Our flagship corporate social responsibility
programme since 2011 has been The ‘Axiata
Young Talent Programme’ (AYTP), which
focuses on the development of Future CEOs.
Over these four years, AYTP has touched
the lives of over 850 exceptional individuals
across different age groups, strengthening
and grooming their potential to grow their
careers at an accelerated pace.
In 2015, we announced the first batch of IT
investments of the RM100million Axiata Digital
Innovation Fund (ADIF), where six Malaysian-
owned technology companies benefitted by
way of RM12 million, helping them expand
their business and product reach into the
regional digital services marketplace.
As a socially responsible operator, Axiata has
also stepped up its commitment to privacy
and data security initiatives beyond the
baseline level of compliance and governance.
We have embarked on a journey to tighten
our IT and cybersecurity systems, and
revised our internal processes to ensure
compliance of personal data protection
legislations and regulatory obligations. In
2015, we implemented the Axiata Regulatory
Compliance Framework across the Group
which will increase the Board oversight of our
regulatory compliance performance.
OPPORTUNITIES AND CHALLENGES
MOVING FORWARD
Moving forward into 2016, a number of
opportunities exist for Axiata Group on various
fronts. Successful recovery at Celcom as a
result of our strategies to recapture market
share would be a major boost to the Group as
awhole. XL’s continuation of its transformation
agenda to move up the value ladder, adapt
to changing market dynamics and focus on
value creation is continuing to show positive
returns. Within edotco, there exists potential
for organic and inorganic growth, especially
with the Myanmar acquisition. Earnings from
Ncell will be immediately accretive for the
Group and there are synergistic benefits from
the Robi-Airtel merger to be explored in the
fast growing Bangladesh market.
Complex regulatory scenarios and heightened
competition are the two challenges the
Group will have to mitigate in the years to
come. Changes in regulatory and government
policies in spectrum, licencing fees and
taxes will continue to have significant and
consequential impact to the Group.
Heightened competition is expected from
traditional mobile operators in almost all
markets. Additional competition from Over-
the-Top (OTT) players could erode revenue
further if not balanced with increased data
revenue. To mitigate this, the Group has
already put in place strategies that will
allow us to compete and at the same time
collaborate with OTT players to gain inroads
into new revenue potential.
Further to this, sluggish macroeconomic
conditions compounded by a fluctuating
currency exchange is expected to affect
Malaysia and Indonesia, and will have its
impacts on our markets across Asia.
Whilewe remain cautious given the challenges,
we are fairly optimistic of achieving our targets
for 2016 with the five significant initiatives we
established over 2015.
AWARDS AND RECOGNITIONS
I am pleased to note that the Group continues
to gain international accolades for its
innovative products and services. We won the
highly prestigious GSMA Chairman’s Award
and Dialog won for Best Mobile Network
Solution for Serving Customers at the GSMA
Mobile World Congress in Barcelona in the
2016 event. Similarly, Smart received its
first regional industry telecommunications
honour at the Frost and Sullivan Asia Pacific
ICT Awards 2015. Collectively, the Group has
won eight GSMA Mobile World Congress
awards, six consecutive Asia Pacific Frost &
Sullivan awards for Best Mobile Group along
with several other numerous industry and
international awards.
Aside from recognition in our business
performance and industry leadership,
the Group is also being recognised for its
commitment to sustainability and standards
of corporate governance both at home and
regionally. With us raising our commitment
on the sustainability agenda and disclosures
in the areas of sustainability reporting, Axiata
managed to beat mature reports to bag the
coveted title of the ‘Best Sustainability Report’
at the ACCA Malaysia Sustainability Reporting
Awards 2015.
Axiatacontinuestostandstrongandexemplary
in its corporate governance practices, winning
consecutive regional and Malaysian awards
and accolades. Over three consecutive years,
the Group has been recognised for upholding
the highest governance and compliance
standards at the Malaysian-ASEAN Corporate
Governance Index, Findings and Recognition
event organised by the Minority Shareholder
Watchdog Group (MSWG).
ACKNOWLEDGMENTS
On behalf of the management of Axiata
Group, I would like to express our gratitude
to our many stakeholders including our
investors, partners and media for your
continued support, as well as governments
and regulators for your co-operation and
facilitation in 2015. Our sincerest appreciation
mainly goes to all our colleagues across
Asia, who have worked relentlessly to get
us to where we are today and to our Board
of Directors for their guidance. Most of all,
we would like to acknowledge our over 275
million customers for their continued support
and loyalty.
DATO’ SRI JAMALUDIN IBRAHIM
MANAGING DIRECTOR/PRESIDENT &
GROUP CHIEF EXECUTIVE OFFICER
axiata group berhad | annual report 2015
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