Agreement to boost Malaysia’s digital economy

From left are Saiful, Mohd Radzi, Mohd Sofian and Razlan with their documents.

KUCHING: The share subscription, share sale and purchase and shareholders’ agreements (definitive agreements) between Sacofa Sdn Bhd (Sacofa) and MSA Resources Sdn Bhd (MSAR) are anticipated to further strengthen Malaysia’s digital telecommunications ecosystem.

Sacofa’s managing director and chief executive officer Mohamed Zaid Zaini said the definitive agreements with MSAR will add to the company’s mission of extending its operations beyond Sarawak.

Having said that, Mohamed Zaid pointed out that the agreements will allow both companies to work with both federal and state governments to increase the broadband penetration rate and narrow the digital divide.

“Over the past 20 years, Sacofa has been focusing on building and further upgrading telecommunications infrastructures in Sarawak which is in line with the federal and state governments’ initiatives, particularly Jalinan Digital Negara (Jendela), spearheaded by the Malaysian Communications and Multimedia Commission (MCMC).

“It is also in line with the Digital Economy Strategy 2018-2022 initiated by Chief Minister Datuk Patinggi Abang Johari Tun Openg to leapfrog the state’s economy via the Digital Economy to become a high-income state.

“We are also actively enhancing connectivity to link Sarawak to the world. The definitive agreements with MSAR will certainly add to our mission of extending our operations beyond Sarawak and more importantly link East Malaysia to West Malaysia on many levels,” he said.

Meanwhile, MSAR’s managing director Saiful Husni Samak expressed his delight in welcoming Sacofa as the newest shareholder.

He said that the aligned vision to turn MSAR into a telecommunications infrastructure powerhouse will be greatly served by Sacofa’s experience and expertise.

Under the definitive agreements which were signed virtually in Kuala Lumpur by MSAR and in Kuching by Sacofa, Sacofa’s acquisition of an initial 30 percent share of MSAR will eventually be raised to 50 percent.

This will enable the two companies to form a strategic alliance and jointly undertake key telecommunications infrastructure projects in Peninsular Malaysia while also focusing on extending and enhancing broadband connectivity to neighbouring Asean countries.

The definitive agreements were signed by MSAR executive deputy chairman Mohd Sofian Mohd Arshad, Saiful, MSAR Corporate Affairs and Business Development head Razlan Joffri Mohd Radzi, Mohamed Zaid and Sacofa Corporate Strategy and General Counsel vice-president Ainor Khaliq Anuarudin.

Witnessing the virtual signing ceremony were MSAR chairman Senator Tan Sri Mohd Radzi Tan Sri Sheikh Ahmad and deputy chairman of Sacofa, Datuk Isaac Lugun as well as directors and senior management figures of MSAR and Sacofa.