Malaysia telecom sector is turning a corner, Credit Suisse says

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SINGAPORE (Jan 16): Malaysia telecom sector’s sales will turn around this year as cellular revenue is set to grow over next three years after declining for the past five, Credit Suisse’s analyst Danny Chan writes in note, upgrading the sector to market weight from underweight.

* Cellular service revenue will grow at a CAGR of 1.3% over by FY19-22 as prepaid customers migrate to postpaid and due to less competition

* Cost of doing business will also dramatically reduce under 5G as regulator wants just one consortium to roll out infrastructure

* Upgrades Axiata to outperform from neutral

* Keeps buy on Maxis and Time dotCom