KUALA LUMPUR (July 23): Telekom Malaysia Bhd (TM) and Tenaga Nasional Bhd (TNB) have terminated the Memorandum of Understanding (MoU) signed by the two groups to jointly develop an implementation plan to deliver on the government's Nationwide Fiberisation Plan (NFP).

The decision to discontinue the MoU was mutual and with immediate effect, they said in their statements filed with Bursa Malaysia, without however stating the reason for the termination.

“Effective today, TNB and TM have mutually agreed not to proceed with the collaboration on NFP.

“The discontinuation, however, does not preclude TNB and TM from considering other collaborations, should there be future business opportunities that are beneficial to both parties,” read the statement.

The MoU was signed on Jan 16 by TM's former managing director and group executive officer Datuk Seri Mohammed Shazalli Ramly and TNB president and chief executive officer Datuk Seri Azman Mohd.

The two government-linked companies had said the collaboration will capitalise on the strengths of both parties, enabling the most efficient cost structure and accelerating the fibre broadband network reach in line with the government’s move to drive Malaysia’s digital economy.

Communications and Multimedia Minister Gobind Singh Deo had said over the weekend that the new  government may replace the previous government’s NFP with the National Connectivity Plan, to allow wider and more extensive Internet accessibility.

Towards this end, Gobind said the Ministry was in the process of discussing with telecommunication companies on the change.