BUSINESS ACTIVITIES

BUSINESS-TO-CONSUMER
(B2C)
BUSINESS-TO-BUSINESS
(B2B)
CARRIER-TO-CARRIER
(C2C)
EDUCATION AND NATION-BUILDING

TM GROUP’S GOVERNANCE FRAMEWORK

TM Group’s CG framework is guided by the legal requirements, best practices, policies and guidelines issued by our regulators and is reviewed on a regular basis to ensure consideration of the latest CG developments. In addition, TM also leverages relevant international best practices and standards to remain globally aligned and competitive.

  • Companies Act, 2016 (CA 2016)
  • Main Market Listing Requirements (Main LR) of Bursa Malaysia Securities Berhad (Bursa Securities)
  • CG Guide (4th edition) published by Bursa Malaysia Berhad
  • Malaysian Code on Corporate Governance 2021 (MCCG) by the Securities Commission Malaysia (SC)
  • Guidelines on Conduct of Directors of Listed Corporations and their Subsidiaries by the SC

EMPOWERING

GENERATIONS

Integrated Annual
Report 2025

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2025 Snapshot

SUMMARY

We are pleased to present TM’s Integrated Annual Report (IAR) 2025. This report is a testament to our commitment to providing stakeholders with a comprehensive understanding of our financial and non-financial achievements. It is designed to enable an assessment of the value we have created and delivered throughout the year.

TOTAL DIVIDEND PAYOUT
RM 1.2 billion

31.0 sen per share

FINANCIAL HIGHLIGHTS

TOTAL REVENUE

RM 11.9 billion

PATAMI

RM 1.7 billion

EBIT

RM 2.0 billion
BUSINESS HIGHLIGHTS
>750,000 km

Domestic fibre cables

>400,000 km*

across 39 submarine cable systems

6 Data Centres

(5 in Malaysia and 1 in Hong Kong)

26

Points of Presence (PoPs)

Reduction in PoPs due to migration to cloud solution.
Drove hybrid cloud-adoption for large-scale enterprises
OUR CUSTOMERS
Business-to-Consumer (B2C)
3.2 million

Fixed broadband customers*

>400,000

MSME customers

>1.1 million

Fixed broadband customers subscribing to mobile and content services^


Business-to-Business (B2B)
>2,000

Government customers

>5,000

Enterprises

Carrier-to-Carrier (C2C)
194

Domestic customers

580

International customers

* Comprises B2C, B2B and C2C segments
^ Customers can opt to subscribe to mobile, content or both. This is in line with our market position as Malaysia’s Convergence Champion.
OUR PEOPLE
17,300

Warga TM

>1.1 million hours

Total training hours by employees

33 %

Women on the Board

36 %

Women in Senior Management

CORPORATE HIGHLIGHTS
ARTIFICIAL INTELLIGENCE

1st telco in Malaysia to receive SIRIM Artificial Intelligence Management System (AIMS) Certification

SUSTAINABILITY
S&P Global ESG 57/100

Highest in the telco industry

3.8
C
A
4 out of 4 stars
RM3.6 billion

Spent on local suppliers

RM57.4 million

Invested in community impact programmes

REFLECTIONS FROM THE TOP

80 YEARS OF PURPOSE, PROGRESS AND POSSIBILITIES

As TM marks its 80th anniversary, we are humbled and proud to have been part of Malaysia’s story of progress across generations.

From telephony to broadband and now to digital platforms, data centres and artificial intelligence (AI), the organisation has continually adapted to meet the nation’s changing needs.

DATO' ZAINAL ABIDIN PUTIH
Chairman

For eight decades, TM has grown alongside Malaysia’s journey of nation-building. What began in 1946 as the nation’s telecommunications service has evolved into a digital orchestrator connecting communities, businesses and institutions across the country. Today, as Malaysia enters a new phase of digital growth and transformation, TM continues to play a strategic role in strengthening the nation’s connectivity foundations and enabling progress across the economy and society.

AMAR HUZAIMI MD DERIS
Managing Director/Group Chief Executive Officer (MD/GCEO)

As we advance our Digital Powerhouse aspiration, our financial priorities remain focused on sustaining resilient revenue growth, protecting earnings quality, preserving balance sheet strength and ensuring disciplined capital allocation. At the same time, we continue integrating sustainability considerations directly into capital planning and financial governance.

AHMAD FAIRUS RAHIM
Group Chief Financial Officer (GCFO)

VALUE CREATION MODEL

OUR CAPITALS…
...ENABLE VALUE‐ADDING
BUSINESS ACTIVITIES THAT CREATE...
...VALUE FOR OUR STAKEHOLDERS
  • INPUTS
    Financial
    FINANCIAL
    • RM30.9 billion market capitalisation
    • RM20.5 billion total assets
    • RM1.6 billion free cash flow
    • RM1.9 billion CAPEX
    Financial
    MANUFACTURED
    • >750,000 km domestic fibre optic cables nationwide
    • >400,000 km across 39 submarine cable systems
    • 6 data centres (including 1 in Hong Kong)
    • 7 edge data centres
    • 26 Points of Presence (PoPs)
    • 153 Content Delivery Network (CDN)
    Financial
    INTELLECTUAL
    • AI Centre of Excellence
    • Multimedia University (MMU) as education arm
    • TM R&D with RM55 million investment value in R&D
    • 167 total number of researchers
    • TM Learning & Development
    • TM Digital Academy
    • TM One Innovation Lab & Enterprise 5G Lab
    Financial
    HUMAN
    • 17,300 Warga TM
    • RM22.6 million invested in training and development
    Financial
    SOCIAL & RELATIONSHIP
    • >1,800 active suppliers with RM3.6 billion spent on local suppliers
    • RM57.4 million invested in community development including scholarships, humanitarian efforts and social impact programmes
    • 506 TM-managed NADI centres nationwide
    Financial
    NATURAL
    • 480,521 MWh of energy consumed
    • 1,681 megalitres of water drawn from municipal water supplies
    • 96,587 MWh of renewable energy through Green Energy Tariff
  • BUSINESS OVERVIEW
    • Market Trends
      • Driving Digital Economy
      • Expanding Digital Infrastructure
      • Orchestrating Digital Ecosystem
      • Embedding Sustainability
    • Risks and Associated Opportunities
      Geopolitical Uncertainties
      Infrastructure Readiness for Future Business Growth
      Mobile Business Growth
      Regulatory Compliance
      Cybersecurity Threats
      IT and Digital Resilience
      Anti-Corruption and Integrity Practices
      Climate Change Impact
      Workforce Development for New Technologies
      Artificial Intelligence (AI) Adoption and Governance (New)
    Material Matters
    • PROSPERITY
      Innovation & Technology
      Customer Experience
      Network Stability & Quality
      Sustainable Value Chain
      Responsible Communication
      Cyber Resilience
      Good Governance
    • PLANET
      Environmental Management
      Climate Change
    • PEOPLE
      Labour Practices & Human Rights
      Learning & Development
      Health & Safety
      Digital Inclusion
      Community Empowerment
  • OUTPUTS/OUTCOMES
    Financial
    FINANCIAL
    • Total dividend payout:RM1.2 billion
    • Return on Equity (ROE):14.2%
    • Return on Invested Capital (ROIC):12.3%
    • Share Price Growth:21.05%
    Financial
    MANUFACTURED
    • 3.2 million fixed broadband customers
    • >1.1 million fixed broadband customers subscribing to mobile and content services
    • >400,000 MSME customers
    • >2,000 government customers
    • >5,000 enterprise customers
    • 194 domestic customers
    • 580 international customers
    Financial
    INTELLECTUAL
    • MMU's new Faculty of AI and Engineering (FAIE) established
    • First Malaysian telco to be certified under ISO/IEC 42001:2023 AI Management Systems (AIMS)
    • 1,217 SCOPUS research publications
    • 92 Intellectual Property Rights (IPRs)
    • Introduced new smart solutions such as Vision AI
    Financial
    HUMAN
    • 100% Warga TM trained in data governance, digital products and cybersecurity
    • A total of 1,118,761 training hours delivered with 11,078 training sessions concluded
    • Onboarded 3,534 Digital Competent talents in the Talent Marketplace Platform
    Financial
    SOCIAL & RELATIONSHIP
    • 104 active vendors in TM's Bumiputera Vendor Development Programme (BVDP)
    • 225,830 beneficiaries including communities, students and general public
    • Rolled out of flagship community programmes such as Jangkau Digital TM, TM Future Skills, as well as support for national sepak takraw development and neurodivergent community
    Financial
    NATURAL
    • TM’s carbon emissions reduction improved by 34% from the 2019 baseline
    • Strengthened water disclosure from 8 sites in 2024 to 60 sites in 2025
    • Implemented rainwater harvesting for non-essential use
  • ACTIONS TO ENHANCE OUTCOMES
    Financial
    FINANCIAL
    • Drive sustained revenue growth across lines of business (LOB)
    • Improve cost efficiency to boost profitability
    • Optimise cost of capital to maximise shareholder value and returns
    Financial
    MANUFACTURED
    • Strengthen network resilience and capabilities
    • Enhance convergence offerings as well as MSME digital solutions and trainings
    • Strategic investments and partnerships in future-ready digital infrastructure
    Financial
    INTELLECTUAL
    • Strengthen capabilities in digital innovation and research
    • Foster industry–academia collaboration to advance knowledge and talent development
    • Strategic investments in R&D
    Financial
    HUMAN
    • Continue equipping Warga TM with the skills and mindset to enhance digital capabilities through structured training and development programmes
    Financial
    SOCIAL & RELATIONSHIP
    • Empower suppliers through capability-building initiatives
    • Support local entrepreneurs through empowerment initiatives and industry-relevant training
    • Continue to strengthen community empowerment programmes
    Financial
    NATURAL
    • Reduce energy consumption through partnerships with solar power producers (SPP) and network modernisation and optimisation
    • Reduce water reliance on municipal supplies through improved water management and technology use
  • STRATEGIC TRADE-OFFS
    Financial
    FINANCIAL
    Financial Capital is channelled into Manufactured, Intellectual, Human, Social & Relationship and Natural Capitals through investments in digital infrastructure, innovation, talent and sustainability. While this may temporarily reduce Financial Capital, it strengthens earnings resilience, operational efficiency and long-term value.
    Financial
    MANUFACTURED
    Investments in network expansion, resilience and next-generation digital infrastructure require upfront capital and ongoing cost commitments. While impacting near-term Financial Capital, these investments enhance service quality, scalability, customer growth, long-term competitiveness, while ensuring long-term revenue for the company.
    Financial
    INTELLECTUAL
    Investments in R&D, AI capabilities and talent development to build a strong innovation pipeline may have immediate financial impact and longer gestation periods. However, they enhance TM’s ability to develop proprietary solutions, strengthen research output and intellectual property, and drive continuous innovation to support long-term growth while supporting national talent development.
    Financial
    HUMAN
    Investments in workforce upskilling, digital capabilities and organisational development may initially impact Financial Capital in the short term. Nevertheless, they build a more agile, productive and future-ready workforce, supporting execution excellence and sustained performance.
    Financial
    SOCIAL & RELATIONSHIP
    Investments in supplier development, ecosystem enablement and community initiatives require dedicated financial resources without immediate financial returns. Over time, these efforts strengthen stakeholder trust, expand market access, support inclusive growth and reinforce TM’s nation-building role.
    Financial
    NATURAL
    Investments in energy transition, resource efficiency and environmental management involve upfront capital and operational adjustments. While impacting short-term Financial Capital, they reduce long-term environmental risks, improve efficiency, support regulatory alignment and strengthen stakeholder confidence.
  • UN SDGs
    Financial
    FINANCIAL
    Financial
    MANUFACTURED
    Financial
    INTELLECTUAL
    Financial
    HUMAN
    Financial
    SOCIAL & RELATIONSHIP
    Financial
    NATURAL

STRATEGY IN ACTION

DEFENDING CORE BUSINESS. SCALING DIGITAL CAPABILITIES

In 2023, we introduced our aspiration to become a Digital Powerhouse by 2030, while positioning Malaysia as the digital hub for the region. Our roadmap is structured into three (3) phases. Phase I: Defend and Build focuses on strengthening core foundations while advancing our digital solutions and platform ecosystem. Phase II: Grow and Replicate scales proven platforms and solutions to expand value creation across Malaysia and ASEAN, before culminating in our 2030 ambition. This journey is anchored in our sustainability Triple Bottom Line of Prosperity, Planet and People (3Ps), embedded across the roadmap to align growth priorities with responsible execution.

PWR Logo

Pioneer

Pioneering industry growth through digitalisation and sustainability by pushing the boundaries of innovation and setting new industry standards.

Win

Winning the infrastructure leadership position in high-impact areas serving communities, businesses and the government by becoming the go-to-provider for high-end infrastructure and services, including 5G.

Revitalise

Revitalising digital talent and innovation ecosystem, positioning Malaysia as a hub for digital advancements by supporting entrepreneurs and innovators.

BUSINESS REVIEW

BUSINESS-TO-CONSUMER (B2C)

Accelerating Growth as Malaysia's Convergence Champion

Malaysia’s connectivity market is well established and increasingly shaped by rising demand for higher‑quality, converged services. Fixed and mobile access are broadly available nationwide, with 5G adoption and usage continuing to deepen. As households seek more integrated digital experiences, convergence has become a key driver of value, reinforcing Unifi’s position as the country’s convergence champion. As such, Unifi continues to enhance its convergence proposition by integrating home, mobile, content and lifestyle solutions while ensuring seamless customer experience.

Revenue
2025
RM5,674.2 million
2024 RM5,633.3 million
0.7 YoY growth
Fixed Broadband Subscribers
2025
3.2 million
2024 RM3.18 million
Convergence
>1.1 million
Broadband customers subscribing to mobile and content services
Unifi TV 2.0 Adoption
1 million downloads within a month
Achieved within one (1) month of launch

BUSINESS-TO-BUSINESS (B2B)

Empowering Digital Transformation for Enterprise and the Public Sector

Malaysia’s overall ICT market is projected to exceed RM190 billion by 2028, growing at a CAGR of more than 15%, with expansion driven primarily on cloud-based platforms and services. Enterprises and Government agencies are increasingly adopting hybrid and multicloud environments to modernise legacy systems and enhance security, compliance and data sovereignty.

Revenue
2025
RM2,782.8 million
2024 RM2,906.2 million
4.2% YoY
Total Government Customers
2025
>2,000
2024 ~2,350
Total Enterprise Customers
2025
>5,000
2024 ~4,750
Revenue Mix Shift
Higher contribution from IT services, cloud, data centres and cybersecurity

CARRIER-TO-CARRIER (C2C)

Positioning Malaysia as the Digital Hub for the Region

Malaysia continues to strengthen its position as a strategic digital gateway, connecting the nation to the world while serving as a key hub for global traffic flowing across the region. Anchored by its central ASEAN location, competitive infrastructure ecosystem and rapidly advancing digital economy, the country continues to attract large-scale investments in next-generation digital infrastructure. Johor and Cyberjaya have emerged as priority clusters, serving as focal points for hyperscale data centre development and regional connectivity growth.

Revenue
2025
RM3,292.6 million
2024 RM3,061.4 million
7.6% YoY growth
Cross-Border Capacity
16.2 Tbps
International Traffic Growth
>170TB YoY
5G Backhaul Deployment
7,600 sites
Data Centre Expansion
+ 20MW
Total customers Domestic and International
Total customers
2025 774
2024 ~800
Domestic
2025 194
2024 193
International
2025 580
2024 557

MULTIMEDIA UNIVERSITY (MMU)

Empowering Malaysia’s Digital Future Through Education

Multimedia University (MMU), TM's education arm continues to contribute to nation building by developing digitally skilled, industry-ready graduates and strengthening Malaysia’s research and innovation ecosystem. We play a strategic role in expanding the country’s digital talent pipeline, advancing research excellence and supporting sustainable institutional and national digital growth.

FINANCIAL
Revenue
RM362.2 million
(2024: RM348.2 million)
4.0% YoY growth
NON-FINANCIAL
6-star ratings
Employers’ Choice of University recognition from Talentbank
Ranked 148
in QS Asia University Rankings 2026
(2025: 207)
Ranked 124 in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026 (2025: 401–500 band) position MMU among the top three (3) universities in Malaysia and as the leading private institution in the country.
Graduate Employability
99.5%
(2024: 98%)
Total Student Population
17,989
(2024: 16,938)
Scopus Publications
1,217
(2024: 1,025)
Citations
35,315
(2024: 23,006)

ARTICLES

Sustainability Message

2025 marks an important chapter in TM’s sustainability journey. As we advance our aspiration to become a Digital Powerhouse by 2030, we are moving beyond traditional ESG frameworks. Sustainability is no longer treated as a standalone programme at TM. Instead, it is embedded into the way we operate, make decisions and create value.

NOR FADHILAH MOHD ALI
Chief Corporate Officer (CCO)

SUSTAINABILITY STATEMENT PART ONE

SUSTAINABILITY-RELATED FINANCIAL INFORMATION REPORT 2025 (ALIGNED TO ISSB STANDARDS)

Our 2025 disclosures mark a pivotal milestone in our commitment to transparency. Driven by financial materiality, Part 1 outlines the foundation of our journey to align with the National Sustainability Reporting Framework (NSRF).

SUSTAINABILITY STATEMENT PART TWO

IMPACT MATERIALITY

This part of the Sustainability Statement centres on Impact Materiality, ensuring our sustainability initiatives remain transparent. Aligned with Bursa Malaysia’s Sustainability Reporting Guide (3rd Edition), this section details the outcomes of our enhanced Double Materiality Assessment, demonstrating how our 14 material matters are now streamlined under three (3) strategic pillars: Prosperity, Planet and People.

CORPORATE GOVERNANCE OVERVIEW STATEMENT

OUR COMMITMENT TOWARDS GOVERNANCE EXCELLENCE

The Board recognises that strong corporate governance (CG) is fundamental to TM Group’s long-term sustainability and value creation. The Board is committed to upholding high standards of integrity, accountability and transparency in the conduct of the Group’s business and affairs.

TM Group Governance Framework

Our CG Framework
Compliance With the MCCG 2021
  • Board Leadership and Effectiveness

    Led by the Board Chairman, the Board holds primary responsibility for setting the tone at the top, defining the Group’s strategic direction, ensuring effective function of the core processes relating to governance, business performance and ethical oversight with the aim of creating long-term sustainable value to stakeholders.

  • Effective Audit and Risk Management

    BAC assists the Board in overseeing financial reporting, internal controls, audit processes and integrity and governance practices across the Group. The Committee plays an important role in safeguarding the integrity of the Group’s financial reporting, ensuring the effectiveness of internal control systems and maintaining the independence and performance of both internal and external auditors.

  • Integrity in Corporate Reporting and Meaningful Relationships with Stakeholders

    Effective communication underpins TM’s governance approach by facilitating transparent, accurate and timely dissemination of information to stakeholders. Guided by the Internal Communication Policy and established best practices, the Group manages corporate disclosures in compliance with regulatory requirements, with a strong emphasis on clarity, consistency and accountability. This framework ensures that the Group’s performance, strategic priorities and material developments are communicated in a structured and responsible manner.

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