A transmitting terminal includes a signal processing unit, MS RF units, MT transmit antennas and a switch unit. The signal processing unit has K precoders for precoding K data streams corresponding to K receiving terminals. The MS RF units output MS up-converted transmit signals based on the precoded K data streams. The switch unit is coupled between the RF units and the transmit antennas and controlled by the signal processing unit for selection of the transmit antennas. The signal processing unit sets the MT transmit antennas as a universal set, calculates a plurality of sum rates corresponding to a plurality of subsets, each subset excluding an ith transmit antenna, according to channel state information, selects the subset with a maximum sum rate as the universal set of a next iteration, and then repeats the calculating and selecting steps until the subset with the maximum sum rate remaining MS transmit antennas.