KUALA LUMPUR: SGX Mainboard-listed TeleChoice International Ltd has won a contract renewal worth an estimated S$1.3 billion from U Mobile Sdn Bhd, one of Malaysia’s leading telcos.
The group’s wholly-owned subsidiary, Planet Telecoms Managed Services Sdn Bhd (PTMS), will continue to provide U Mobile with end-to-end supply chain services.
The renewed contract’s annual value is higher than that of the first, reflecting an expanded scope of services.
The first contract was announced in February 2024 and valued at S$500 million over three years.
The renewal takes effect from February 2027 for a 3-year term, which may be extended for a further 2 years.
The U Mobile partnership has been an important growth driver for TeleChoice in Malaysia.
It has contributed significantly to the group’s Personal Communications Solutions Services Division.
The renewal is expected to continue to positively impact the group’s consolidated net tangible assets per share and consolidated earnings per share for the financial year ending Dec 31, 2027.
TeleChoice president and CEO Pauline Wong said this renewal is a strong vote of confidence in the company.
“In just three years, the network we manage for U Mobile has grown from over 600 to more than 1,000 touchpoints across Malaysia.
“This reflects the hard work of our PTMS team and the close collaboration between our two companies.
“As U Mobile extends the nationwide reach of its ULTRA5G network, we will invest further in our people, systems and automation.
“We will also build on this experience to take our managed services business further across the region,” she said.
U Mobile CEO Wong Heang Tuck said the renewed agreement with TeleChoice builds on the operational capabilities that the teams have developed together.
“It will help us respond to changing demand across our sales and distribution channels as we expand our 5G network nationwide.
“This supports our vision of being Malaysia’s preferred mobile and digital services provider,” he said.
Under the agreement, PTMS manages U Mobile’s device supply chain from end to end.
As U Mobile’s procurement partner, it oversees the full product lifecycle.
Its services include stock management, warehousing, order fulfilment and distribution.
PTMS also finances the device inventories and provides insurance coverage for deliveries.
Real-time data is used to monitor performance and manage stock levels efficiently.
Since the partnership began, PTMS has continued to strengthen these capabilities.
This has enabled faster procurement and a broader product portfolio for U Mobile, spanning new brands and models, accessories and wearables.
PTMS also ensures products are readily available across U Mobile’s touchpoints, particularly during campaigns and promotional periods.
Going forward, it is committed to further investment in its people, systems and technology, with plans to explore the use of AI in demand forecasting and inventory planning.