PETALING JAYA: RHB Research Bhd has maintained a “neutral” rating on the local telecommunications sector pending greater clarity on regulatory risks, the retabling of Budget 2023 and outcome of mandatory standard and access pricing (MSAP) public inquiry.
The research outfit stated due to the uncertainty in the market place, its prefers fixed line service providers like Telekom Malaysia Bhd
(TM) over mobile counters.
This is on expectations growth will be driven by demand for quality and reliable broadband connectivity including robust wholesale growth for 5G services as well as cost optimisation and enterprise digitalisation efforts such as the structural shift towards cloud services and managed services in financial year 2023 (FY23).
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