Optimizing the Asset and Liability Management of Telecommunication Company using Goal Programming Model

Authors

  • Lam Weng Siew Department of Physical and Mathematical Science, Faculty of Science, Universiti Tunku Abdul Rahman, Kampar Campus, Jalan Universiti, Bandar Barat, 31900 Kampar, Perak, Malaysia
  • Lam Weng Hoe Department of Physical and Mathematical Science, Faculty of Science, Universiti Tunku Abdul Rahman, Kampar Campus, Jalan Universiti, Bandar Barat, 31900 Kampar, Perak, Malaysia
  • Lee Pei Fun Department of Physical and Mathematical Science, Faculty of Science, Universiti Tunku Abdul Rahman, Kampar Campus, Jalan Universiti, Bandar Barat, 31900 Kampar, Perak, Malaysia

DOI:

https://doi.org/10.30564/jeisr.v2i2.2497

Abstract

Since the telecommunications companies experience great competition, high churn rate, data traffic issues during the Covid-19 pandemic and the upgrade to 5G connectivity, the finance management of a telecommunications company should be analyzed to study the volatility and returns in the sector. This paper aims to develop a goal programming model to examine the asset and liability management of a telecommunication company, namely Telekom Malaysia Berhad (TM) in Malaysia. The result of this study shows that TM has achieved all the goals in maximizing assets, equities, profits, earnings and optimum management item while minimizing liabilities over the period of study from 2015 to 2019. Potential improvements on these goals have also been identified through this study. This paper has also contributed to the studies in financial management since past studies have not been done on asset and liability management in telecommunications companies which is rapidly growing and expanding even while the world is suffering from economy crisis during this pandemic.

Keywords:

Goal programming, Optimal solution, Telecommunication, Potential improvement

References

[1] Rouse, M. Telecommunications (Telecom), 2016. https://searchnetworking.techtarget.com/definition/telecommunications-telecom

[2] International Finance Corporation. Covid-19’s impact on the global telecommunications industry, 2020.

[3] Oyeniran, S. T., Jayesimi, O. S., Ogundele, R. A., Oyeniran, O. A. Computer mediated communication for effective and efficient organization service deliv-ery amid Covid-19 pandemic[J]. International Journal of Engineering and Artificial Intelligence, 1(3): 44-49.

[4] NST Business. Telco to work hand in hand with govt to execute Jendela[N]. New Straits Times. https://www.nst.com.my/business/2020/09/621570/telco-work-hand-hand-govt-execute-jendela

[5] Business Wire. Malaysia telecom operators country intelligence report 2020[R]. https://www.businesswire.com/news/home/20200714005513/en/Malaysia-Telecom-Oper-ators-Country-Intelligence-Report-2020

[6] Abidin, A. F. Z., Hashim, H. A., Ariff, A. M. Ethical commitments and financial performance: evidence from publicly listed companies in Malaysia[J]. Asian Academy of Management Journal, 22(2): 53-95. DOI: https://doi.org/10.21315/aamj2017.22.2.3

[7] Amin, A., Al-Obeidat, F., Shah, B., Adnan, A., Loo, J., Anwar, S. Customer churn prediction in telecommu-nication industry using data uncertainty[J]. Journal of Business Research, 94: 290-301. DOI: https://doi.org/10.1016/j.jbusres.2018.03.003

[8] John, S. J. The evolution of Malaysia' s telecom in-dustry, 2020. https://www.telecomreviewasia.com/index.php/news/featured-articles/1841-the-evolution-of-malay-sia-s-telecom-industry#:~:text=In%202018%2C%20the%20telecommunications%20sector,generated%20by%20fixed%20service%20providers

[9] Jhunjhunwala, A. Role of telecom network to man-age Covid-19 in India: Aarogya Setu[J]. Transactions of the Indian National Academy of Engineering. DOI: https://doi.org/10.1007/s41403-020-00109-7

[10] PwC. Covid-19 and the telecommunications industry. 2020. https://www.pwc.com/us/en/library/covid-19/corona-virus-telecommunication-impact.html

[11] Sam, M. F. M., Li, B. L. X., Ismail, A. F. Analyzing the financial performance of telecommunications companies in Malaysia by using financial state-ments[J]. Advanced Science Letters, 23: 7641-7644. DOI: https://doi.org/10.1166/asl.2017.9542

[12] Shen, Y., Wei, J., Zhao, Q. Mean-variance asset-li-ability management problem under non-Markovian regime-switching models[J]. Applied Mathematics & Optimization, 81(3): 859-897. DOI: https://doi.org/10.1007/s00245-018-9523-8

[13] Hamm, A. M., Knispel, T., Weber, S. Optimal risk sharing in insurance networks: an application to asset-liability management[J]. European Actuarial Journal, 10(1): 203-234. DOI: https://doi.org/10.1007/s13385-019-00219-9

[14] Lam, W. S., Chen, J. W., Lam, W. H.. An empirical study on the selection of fast food restaurants among the undergraduates with AHP model[J]. American Journal of Information Science and Computer Engi-neering, 2(3): 15-21.

[15] Lam, W. S., Leong, W. B., Lam, W. H. Selection of mobile network operator based on multi-criteria de-cision making model using Analytic Hierarchy Process [J]. Mathematics and Statistics Journal, 1(1): 12-18.

[16] Lam, W. S., Bishan, R. S., Lam, W. H.. An empirical study on the mold machine-tool selection in semi-conductor industry with Analytic Hierarchy Process Model[J]. Advanced Science Letters, 23(9): 8286-8289. DOI: https://doi.org/10.1166/asl.2017.9878

[17] Lam, W. H., Lam, W. S., Liew, K. F. Performance analysis on telecommunication companies in Malay-sia with TOPSIS model [J]. Indonesian Journal of Electrical Engineering and Computer Science, 13(2): 744-751. DOI: https://doi.org/10.11591/ijeecs.v13.i2

[18] Lam, W. S., Lee, W. K., Lam, W. H.. Multi-criteria decision making in job selection problem using An-alytic Hierarchy Process model[J]. Mathematics and Statistics Journal, 1(2): 3-7. DOI: https://doi.org/10.11591/ijeecs.v13.i2.pp744-751

[19] Lam, W. S., Bakar, M. A., Lam, W. H., Liew K. F. Multi-criteria decision making in the selection of mo-bile network operators with AHP-TOPSIS model [J]. Journal of Engineering and Applied Sciences, 12: 6382-6386. DOI: https://doi.org/10.36478/jeasci.2017.6382.6386

[20] Lam, W. S., Lam, W. H., Liew, K. F., Chen, J. W. An empirical study on the preference of fast food restau-rants in Malaysia with AHP-TOPSIS model[J]. Journal of Engineering and Applied Sciences, 13: 3226-3231. DOI: https://doi.org/10.36478/jeasci.2018.3226.3231

[21] Liew, K. F., Lam, W. S., Lam, W. H. Financial anal-ysis on the company performance in Malaysia with multi-criteria decision making model[J]. Systems Science and Applied Mathematics, 1(1): 1-7.

[22] Lam, W. S., Liew, K. F., Lam, W. H. Evaluation on the financial performance of the Malaysian banks with TOPSIS model [J]. American Journal of Service Science and Management, 4(2): 11-16.

[23] Lam, W. S., Lam, W. H., Liew, K. F. Data analysis on the performance of technology sector in Malaysia with Entropy-TOPSIS model[J]. Communications in Computers and Information Science, 886: 194-203. DOI: https://doi.org/10.1007/978-981-13-1628-9_18

[24] Guijarro, F., Poyatos, J. A. Designing a sustainable development goal index through a goal programming model: the case of EU-28 countries [J]. Sustainability, 10(3167): 1-17. DOI: https://doi.org/10.3390/su10093167

[25] Bal, A., Satoglu, I. S. A goal programming model for sustainable reverse logistics operations planning and an application [J]. Journal of Cleaner Production, 201,10: 1081-1091. DOI: https://doi.org/10.1016/j.jclepro.2018.08.104

[26] Chen, L., Peng, J., Zhang, B. Uncertain goal pro-gramming models for bicriteria solid transportation problem [J]. Applied Soft Computing, 51: 49-59. DOI: https://doi.org/10.1016/j.asoc.2016.11.027

[27] Mirzaee, H., Naderi, B., Pasandideh, S. H. R. A preemptive fuzzy goal programming model for generalized supplier selection and order allocation with incremental discount [J]. Computers & Industrial Engineering, 122: 292-302. DOI: https://doi.org/10.1016/j.cie.2018.05.042

[28] Trivedi, A., Singh, A. A hybrid multi-objective deci-sion model for emergency shelter location-relocation projects using fuzzy analytical hierarchy process and goal programming approach [J]. International Journal of Project Management, 35, 5: 827-840. DOI: https://doi.org/10.1016/j.ijproman.2016.12.004

[29] Arewa, A., Owoputi, J. A., Torbira, L. L. Financial statement management, liability reduction and asset accumulation: an application of goal programming model to a Nigerian bank[J]. International Journal of Financial Research, 4, 4: 83-90. DOI: https://doi.org/10.5430/ijfr.v4n4p83

[30] Naderi, S., Minouei, M., Gashti, H. P. Asset and lia-bility optimal management mathematical modeling for bank [J]. Journal of Basic and Applied Scientific Research, 3(1): 484-493.

[31] Gür, S., Eren, T. Scheduling and planning in service systems with goal programming: literature review [J]. Mathematics, 6(265): 1-16. DOI: 10.3390/math6110265

[32] Halim, B. A., Karim, H. A., Fahami, N. A., Mahad, N. F., Nordin, S. K., Hassan, N. Bank financial state-ment management using a goal programming model [J]. Procedia-Social and Behavioral Sciences, 211: 498-504. DOI: https://doi.org/10.1016/j.sbspro.2015.11.066

Downloads

How to Cite

Siew, L. W., Hoe, L. W., & Fun, L. P. (2020). Optimizing the Asset and Liability Management of Telecommunication Company using Goal Programming Model. Journal of Electronic & Information Systems, 2(2), 23–29. https://doi.org/10.30564/jeisr.v2i2.2497

Issue

Article Type

Article