Axiata’s costly ventures

An analyst says the investments into the frontier markets have added pressure on Axiata’s cash flow as the investments have yet to yield the returns as expected.

Axiata Group Bhd’s decision to exit some of its risky frontier market investments is a valuable lesson not only to corporate Malaysia, but also the government as the biggest shareholder of the telecommunication giant.

Last December, Axiata walked out of Nepal at a loss, complaining about unfair taxation and unfavourable foreign investor protection.