PETALING JAYA: In view of Singapore’s proposal to ban the sale of media streaming boxes in the country, analysts say Astro Malaysia Holdings Bhd may reap benefits if Malaysia follows suit.
Earlier this month, Singapore’s Law Ministry said it was proposing a ban on the sale of set-top boxes or media streaming boxes with services that allow consumers access to pirated content.
According to reports, this is among proposed changes to the country’s Copyright Act, to be tabled in Parliament this year.
The amendments are the result of a three-year review and follows consultation with Singapore’s Intellectual Property Office, content providers, Pay-TV operators, and the public; and will introduce civil and criminal liabilities.
Maybank Investment Bank (IB) Research noted that Android TV boxes had posed a huge problem for Pay-TV operators both in Singapore and Malaysia.
“If Malaysia passes similar legislation, we believe that it would be a huge catalyst for Astro,” the research house said.
The research house has maintained its earnings estimates, “buy” call on the counter and target price of RM1.95.
“We continue to like Astro for its high dividend yields of over 6%, attractive valuations and potential as an merger and acquisition or privatisation candidate,” it said.
In November 2018, the Singapore High Court ordered Internet service providers to cut Internet access to Android TV boxes.