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NATIONAL CONTRIBUTION REPORT
90
Axiata Group Berhad | Sustainability & National Contribution Report 2016
1.
Methodology
1.1 KPMG’s methodologies and computational formula
Direct Value Added
contributions were estimated
based on operational data provided by Axiata
regarding operating revenues, operating expenditures,
compensation of employees and indirect taxes and
levies.
Total Value Added
Contributions were estimated using
an economic multiplier. The total multipliers (Type II)
for the Telecom industry were derived from national
Input-Output (I-O) tables published by OECD, ADB and
national statistical agencies.
Employment
is generated through a number of avenues
including:
1.
Directly through Axiata and related industries.
2.
Outsourced support services including customer
support and network operations and maintenance.
3.
Indirectly through firms that provide services to
Axiata’s operations.
4.
Induced as employees from the above spend their
household income thereby generating further
rounds of employment.
Total employment impact is estimated using I-O tables
and Average Value Added per Worker derived from
relevant Departments of Statistics for each country.
1.2 Capital Investment
1.
Total Value Added = Capital Expenditure x
Proportion Spent in Host Country x Average Value
Added Multiplier
2.
(a)
For countries employment multipliers are
available,
Total Employment in Host Country = Total
Capital
Expenditure in Host Country x Average
Employment Multiplier
(b)
For countries employment multipliers are
not available,
Total Employment in Host Country = Total
Capital
Expenditure Value Added in Host Country/
Average Value Added per Worker in Host
Country
1.3 Operational
1.
Total Value Added = Direct Value Added x Total
Value Added Multiplier
Where,
Direct Value Added = Operating Revenue –
Operating Expenditure + Compensation of
employees + Indirect taxes and levies
Note: Operating expenditure provided by Axiata excludes
depreciation.
2.
(a)
For countries employment multipliers are
available,
Total Employment = Total Operational
Expenditure x Average Employment Multiplier
(b)
For countries employment multipliers are
not available,
Total Employment = Total Indirect Value
added/Average Value Added per worker +
Direct Employment Direct Employment = As
per Axiata data
3.
Axiata’s labour productivity = Direct Value Added/
Number of employees
Note: Number of employees includes both direct and outsourced
employees.
1.4 Productivity Analysis
Axiata Contribution to GDP Growth = National
Contribution to GDP Growth x Market Share of Axiata
Where,
National Contribution to GDP Growth = National
Penetration Growth x Growth Factor Penetration =
Number of Subscribers/Population
Note: Growth Factor was assumed to be 1.2% per 10% change in
market penetration for all countries except 0.6% market penetration
for Singapore
NATIONAL CONTRIBUTION
REPORT