ABSTRACT
Among developing countries, Malaysia was one of the first to initiate reforms
within its telecommunications sector. The Telecommunications Department, or
the Jabatan Telekom Malaysia, was corporatised in 1987 and listed on the Kuala
Lumpur Stock Exchange (KLSE) in 1990. In 1993, the government introduced
competition to all segments of this sector – mobile, domestic and international
services. Malaysia experienced a pendulum swing, so to speak, from a position
of public monopoly to one of too many players. While some might attribute this
to irrational exuberance about the merits of competition and the free market
(amplified by technology change), it is better explained as the result of intensive
lobbying by politically well-connected businessmen who sought entry into this
potentially lucrative sector. The government ministry in charge of telecommu-
nications, the then Ministry of Energy, Telecommunications and Post, had
recognised from the outset the problems of an over-crowded market, with the
issuance of so many licences. Yet, numerous new players were allowed market
entry just the same.
