TeleChoice unit secures S$1.3 billion supply chain deal from Malaysia’s U Mobile

[SINGAPORE] Mainboard-listed TeleChoice International (TeleChoice) has won a contract renewal with Malaysia’s telecoms company U Mobile worth around S$1.3 billion.

In a bourse announcement on Monday (Oct 26), TeleChoice, an info-communications products and services provider, stated the renewed contract will last for three years with an option to be extended by a further two years.

Pauline Wong, president and CEO of TeleChoice said: “As U Mobile extends the nationwide reach of its Ultra 5G 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.”

The original contract, signed in February 2024 and due to expire in February 2027, was worth S$500 million.

The contract is signed between U Mobile and TeleChoice’s Malaysian unit Planet Telecoms Managed Services (PTMS) and is for the provision of fourth-party logistics (4PL), meaning the contracted party will manage and design a company’s entire end-to-end supply chain.

The contract means PTMS manages U Mobile’s device supply chain from end-to-end, including stock management, warehousing, order fulfilment and distribution. It also finances the device inventories and provides insurance coverage for deliveries.

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TeleChoice described the partnership as an important growth driver for its Malaysian business. It noted that the contract renewal is expected to have a “positive impact on the group’s consolidated net tangible assets per share and consolidated earnings per share for the financial year ending Dec 31, 2027”.

Shares of the counter closed trading flat at S$0.198 on Monday.