Categories: BusinessNews

Celcom-Digi merger may offer voluntary separation instead of retrenchment

by AZALEA AZUAR / graphic by MZUKRI

THERE will not be any forced retrenchment following the Celcom Axiata Bhd and Digi.Com Bhd merger, but a possibility of voluntary separation instead.

Rakuten Trade head of equity sales Vincent Lau said this merger is an opportunity for both Digi and Celcom staff, whereby those who opt to leave might gain attractive packages while those who stay will create a stronger entity.

“As a bigger entity, they will become a market leader. 

“Coverage will be better and then there is the upcoming 5G technology to look forward to,” he told The Malaysian Reserve recently.

There may be an improvement in network coverage, saving their costs for 5G investments, as well as improving customer service.

However, Lau warned that there might be some overlap in the management.

“They cannot have two regional heads, so they must choose only one while the other could be the deputy, depending on the framework,” he said.

On June 21, the Malaysian Communications and Multimedia Commission approved the merger between Digi and Celcom to become MergeCo, which is expected to establish a commercially stronger and more resilient digital converged service provider.

“As societies and businesses increasingly turn to digitalisation for productivity and efficiency gains, MergeCo will be well-placed to drive 5G solutions; catalyse new growth opportunities for large enterprises and small and medium enterprises; and attract and partner global digital giants in support of Jendela (Jalinan Digital Negara) and MyDigital aspirations. 

“MergeCo will also leverage on combined economies of scale to deliver benefits to customers through strengthened core distribution, improved network operations and efficiencies realised from operational activities,” Celcom said in an earlier statement.

“The merger is also committed to protect the welfare of its employees by not having any forced retrenchments and will create opportunities for them to be part of their growth,” it added.


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