Gov’t plans to divest CTM stake to avoid market conflict

The government plans to relinquish its 1% stake in CTM to avoid potential conflicts of interest and ensure fair competition among telecommunications operators under a proposed new Telecommunications Law, a lawmaker said.

Leong Sun Iok, chairman of the Legislative Assembly’s Third Standing Committee, said government representatives acknowledged the committee’s concerns during a clause-by-clause review of the bill. However, they did not provide a timeline for the divestment.

The proposed legislation would replace the current telecommunications licensing system with an application-based regime without a fixed limit on the number of licenses. Applicants would undergo qualification assessments, while the government would shift its regulatory focus toward maintaining market order through a combination of preventive and post-incident oversight.

Under the bill, the Post and Telecommunications Bureau (CTT) could require operators to revise service pricing or promotional plans if these were found to involve anti-competitive practices or hinder market development. The legislation also proposes adjusting fines and introducing tougher penalties for certain violations.

The committee also raised concerns about responsibility for emergency repairs to telecommunications infrastructure during typhoons after existing concession arrangements end.

Lei said the government had responded that, under the more open market framework, the chief executive could require licensed operators to jointly participate in emergency repair work as part of civil protection efforts.

The proposed changes aim to introduce greater competition while maintaining regulatory oversight.