Although the improvement might have been insignificant, but if the adjustment has been made for previous years as well (in which the information is not available to us), the improvement might have been significant.

 Therefore, this could help to improve TM’s borrowings power if the need arose. Next, under this method, it is also able to reflect a truer and fairer financial position in terms of its Net Assets as well as Shareholders’ Funds as immediate immediate write-off will result in understatement of Balance Sheet totals.For the final words, it can be said that TM has seen a better performance for the year 2000. This is evident from the fact that there are improvements in its operating and net profit margin. This is in terms of a better overall performance in its operating activities. For the year 2001, TM expects that they are able to maintain its position as the market leader in the fixed line and internet services sectors.

As for the mobile services sector, TM expect to increase its market share through extensive marketing and network upgrade to serve the prepaid and post-paid services.As for future growth, it can be said that there are few opportunities for TM to explore. Firstly, TM has to take strong initiative and strategies to expand their overseas operations in view of the globalisation in year 2007.

Next, with the imminent merging of the Broadcasting, Telecommunications and Computing industries in 2005, this will extra incentives for TM to provide its services beyond the traditional voice media option with its network and multimedia services already in place.However, TM should also have to take strong initiative and strategies in maintaining its local operations as the expected influx of large foreign telcos will change the price and cost structure of local telecommunications arena, especially in the field of mobile services segment, which is deemed as one of the fastest growing business not just locally, but on international stage as a whole. Also, TM should take extensive R&D and planning in order to ensure that the 3G technology will be able to yield ‘justifiable’ return in terms of the huge layout of capital requirements.From the employees’ viewpoint, the exercise of the ESOS by its employees showed that there is a high level of faith and confidence among the employees regarding the future and stability of the Group. In return, TM has taken several ways in appreciating acknowledge the services of its employees.

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 As for the lenders’ point of view, TM has taken a policy of maintaining its borrowings level in spite of its rapid growth in its operating activities. This is able due to the overwhelming response in the participation of the ESOS by its employees, where it has tremendously increased its Shareholders’ Funds.Lastly, I believe that the recommended accounting treatment of capitalising the Goodwill as a permanent item in the Balance Sheet and subject to impairment test will greatly enhance its financial position in terms of showing a truer and fairer Net Assets position as well as improving its Gearing position. Yours Faithfully, Financial Analyst.

BIBLIOGRAPHYThe following materials and websites have been used to prepare and complete the report. They are: (1) The Annual Report of Telekom Malaysia Berhad (2) www.telekom.com.my