Tan Sri Shahril Ridza Ridzuan Axiata Group Berhad, one of Asia's leading telecommunications companies, has expressed strong optimism about Bangladesh's future as a high-growth market, accentuating the need for stable state policies and clear regulations to court long-term foreign investment.
In an exclusive interview with The Financial Express (FE) during his recent Dhaka visit, Axiata Group chairman Tan Sri Shahril Ridza Ridzuan outlined the company's vision for its operations in Bangladesh.
He pointed out that regulatory and policy consistency was crucial for fostering an environment conducive to long-term investment.
"We look forward to seeing stable government policies and a clearly defined tax framework. This is the kind of environment that foreign investors are keen to succeed in," said Mr Ridzuan.
"The stability of policies and regulations really encourages us to think about the long-term investment that we have here."
The Axiata boss branded Bangladesh as a "fantastic" and "high-growth" market, drawing comparisons with other countries where Axiata has significant operations.
"We've invested in emerging markets like Malaysia, Vietnam, Cambodia and Sri Lanka. Bangladesh is showing a similar growth trajectory. As the market matures and the government focuses on rolling out digital services and infrastructure, we are seeing a rapid shift toward a more digital lifestyle for the average consumer."
As data consumption in Bangladesh lags behind markets like Malaysia where usage is five to six times higher per person, according to Mr Ridzuan, the rate of growth is accelerating.
"Over the next five to 10 years, we expect Bangladesh to match neighbouring countries like India in terms of data consumption," he noted.
"This is where telecom operators like Robi, our local subsidiary, must continue investing in infrastructure to support this growth."
Robi Axiata, an Axiata subsidiary, has had sustained growth in recent years, enabling the company to invest in its infrastructure and network. This has resulted in an improvement in the quality of services, including call stability and internet pricing, according to Mr Ridzuan.
"The quality of service, including call-drop rates and internet prices, is now better than in many developed countries," he said, crediting close collaboration with regulators and local partners for these improvements.
The Axiata leader also acknowledged the challenges posed by foreign-exchange fluctuations but reiterated his company's commitment to further investment here.
He said Axiata concerns-Robi Axiata and Edotco-are committed to reinvesting in Bangladesh and both have been continuously reinvesting from their profit to upgrade the market.
But Mr Ridzuan has reiterated that stable policies in regulation, laws and rules, taxation are prerequisite for long-term investment.
While 5G remains a key priority for Axiata globally, he cautioned that it might not be an immediate priority for Bangladesh due to relatively low smartphone penetration, currently estimated at 60 per cent.
For successful 5G coverage, smartphone penetration and internet connectivity would need to cover 90 per cent of the population, explained Mr Ridzuan.
"Bangladesh is rightly focusing on increasing internet connectivity before leaping into 5G. The investment in 5G infrastructure is significant, and it needs to be sustainable," he said.
The demand for smartphones and digital services will naturally grow as the country's digital infrastructure improves.
Citing Axiata's experience in Malaysia where it has deployed 5G coverage to over 70 per cent of the population, Mr Ridzuan said Bangladesh could expect similar growth trends once the foundation for digital services is firmly in place.
"In many countries, the demand for smartphones peaks when digital services surpass non-digital alternatives in convenience and quality," he explained.
"Bangladesh is on the right track, focusing on connectivity and digitisation and preparing for the eventual transition to 5G."
Mr Ridzuan's extensive experience in leading major investment ventures, including his previous role as managing director of Khazanah Nasional Berhad, Malaysia's sovereign wealth fund, has shaped his approach to balancing short-term financial returns with long-term benefits.
His leadership at Axiata is expected to drive further growth in Bangladesh and other emerging markets.
Mr Ridzuan was appointed as chairman of Axiata Group Berhad on 01 January 2022, after joining the board on 29 November 2021.
© 2024 - All Rights with The Financial Express
