This thesis is concerned with an evaluation of decisions and practices of the government of Malaysia and top management of Telekom Malaysia (TM) in the preparation for and after privatisation of the entity.The thesis shows that in reality the Malaysian government has pursued policies contrary to its stated privatisation goals by denying independent decision making in TM and hence the evolution of strategic management practices in the privatised entity. Instead of an independent decision-making body, the top management of TM are little more than acquiescent political and civil service appointees, who are obliged to accept passively directives from the government which clearly will affect the ability to achieve the stated corporate goals of Telecommunications Vision 2005 - to put in place a first class network and organisation which is capable of providing services on a par with those existing in the advanced countries by the year 2005.On the basis of this study, the researcher has arrived at several propositions. The most important contribution of the thesis is that it presents to both the government and top management of TM, recommendations to adopt an appropriate strategic management and long-term approach to achieve the stated goals based on long-term growth, efficiency and higher bumiputra equity, that supports the realisation of TM's ambitious goal of Telecommunications Vision 2005