i think you don't understand economics, or the real world.

TM cannot just wire-up KL or Penang and just ignore everywhere else in Malaysia; as Hanzo explained.

If you have 2 parents (Family A) earning $200,000 & have only 1 child; compared to another family (B) where they earn $50,000 with 8 children, do you think these 9 kids have the same education & benefits? Surely the 1 rich kid (A) can afford Ipods, PS3, swimming at clubs,private school, etc. The other 8 kids (B) will have a totally different lifestyle.... or you think the parents can just help 1 kid & leave the other 7 kids with nothing??????

in other words, imagine TM only put fibre in KL & everyone in KL get 50mbs internet, but the rest of malaysia no need any wiring, no need phones, no need communication....?

That's what happen if you say "just compare any city in Malaysia to Singapore".... btw, you may not be aware that Singapore is a COUNTRY, not just a city.
As for China, if you're thinking of comparing KL (2 million) to Beijing (22 million) or Shanghai (17 million), of course the logistics & business opportunity makes it worth to invest billions in China where the potential customers is 10 times more. When Celcom first started business, they actually set-up telecom companies in China, where 1 small China city earn more revenue than the entire Malaysia. Even a "small city" like Shenzhen (by China standards) has over 8 million population... that's 400% bigger than KL, or 1600% bigger than Ipoh!

If you still don't understand basic economics & business logistics, i'm sorry you'll have to go somewhere else to learn this.........

You dont need to be absolutely that extreme for a comparison. Rural area do not need a Skyscraper, LRT or Unifi

We have 56k and streamyx covering most of our country. Rural area do not need Unifi. Covering KL, Penang as several Major cities is more than enough for now.

IMO, it is much better for TM to provide better infrastructure in the city get 10 people to subscribe VIP20, than laying cable across the country to a smaller city to get 3 VIP5 customer.  Its is all about business.

OKlah, just to reply to your very bizarre sceanario (which would be a good script for a cantonese soap-opera):

Lets say both family A and B have the SAME income. Same question applies: would the 8 kids in B have the same standard of living as the 1 kid in A???

That is more relevant to the original question that was asked; i.e. why Singapore (700 sq km) can have 50mbs while Malaysia (330,000 sq km) have lousy streamy line.