May 2004 updates

Jaring not going to merge with TM Net
By Chin Saik Yoon in Penang, Malaysia. May 2004

Plans to merge the two top Malaysian ISPs have been abandoned. This was announced by the recently appointed Minister for Energy, Water and Communications, Dr Lim Keng Yaik and reported by In.Tech on 11 May 2004. The article quoted him as saying that his ministry had discussed the proposed merger and decided in favour of preserving a competitive environment in the ISP market.

If the merger had proceeded, it would have created a near monopoly in the country. The merger was first proposed in the 2004 Malaysian budget. It caught most people in the industry unawares and caused much concern among Internet users in the country worried about the long-term implications of such a merger. Telekom Malaysia, the parent company of TM Net, had previously made known its interests in taking over Jaring about three years ago.