TM says it has executed agreement with MYTV in two-year-long arbitration dispute

KUALA LUMPUR (June 27): Telekom Malaysia Bhd (KL:TM) said it has executed an agreement with MYTV Broadcasting Sdn Bhd to settle all their disputes related to non-payment for the provision of digital terrestrial television (DTT), broadcasting infrastructure and network facilities.

It said in a bourse filing on Thursday that both parties will jointly inform the arbitral tribunal of the settlement of the disputes.

However, it has yet to reveal the terms of the settlement agreement. “Further announcement will be made on any material developments in respect of this matter,” it added.

In February 2022, MYTV — an infrastructure and network service provider controlled by tycoon Tan Sri Syed Mokhtar Albukhary — filed for arbitration to seek declaratory relief related to a service agreement.

These included declaratory relief that TM is not entitled to be paid the amount of RM91.71 million or any amounts claimed by TM under the service agreement and that the amount of RM38 million paid by MYTV to TM under the consultancy agreement be accounted for and deemed as payment under the service agreement.

The telco denied all allegations and claims made by MYTV. It also counterclaimed against MYTV for reliefs including RM84.02 million for the outstanding charges and RM15.62 million for late-payment charges due and owed by MYTV to TM under the service agreement as at April 30, 2023.

TM previously signed an agreement worth RM916.1 million in 2016 to provide services to MYTV for a period of 15 years.

Shares of TM closed near its all-time high at RM6.78 on Thursday, valuing the group at RM26.02 billion.

It charted a new all-time high at RM6.81 last week after announcing its joint venture with Singapore Telecommunications Ltd (Singtel)’s indirect subsidiary Nxera My Pte Ltd to develop a data centre in Johor.