25 May 2023
TM Records a Promising 1Q2023 Performance with 2.0% Revenue Growth; Continues to Strengthen its Core Business
1Q2023 Key Highlights (vs 1Q2022)
· Operating Revenue grew 2.0% from RM2.89 billion to RM2.95 billion, with continuous growth across Unifi and TM Global
· EBIT decreased 15.5% from RM560.4 million to RM473.3 million, following accelerated depreciation and impairment
· PATAMI lower 2.9% from RM339.9 million to RM330.1 million, lower EBIT cushioned by lower net finance cost and effective tax rate
· CAPEX investment stood at 14.0% of revenue or RM413.1 million, heavily attributed to fibre network expansion
Amidst the challenges for the year, Telekom Malaysia Berhad (TM) achieved a steady and promising performance in the first quarter that ended on 31 March 2023, compared to the same period in the previous year (YoY).
Operating revenue grew 2.0% to RM2.95 billion, from RM2.89 billion in 2022, driven by Unifi and TM Global. TM saw an increase in customers with Unifi now serving close to 3.5 million home and MSME customers, TM One catering to 8,800 businesses, and TM Global serving more than 700 local and regional customers.
Its reported Earnings Before Interest and Tax (EBIT) is lower 15.5% to RM473.3 million, from RM560.4 million, following the Group’s decision to accelerate depreciation and impairment of IT assets, due to changes in market conditions.
Profit After Tax and Minority Interest (PATAMI) decreased 2.9% to RM330.1 million from RM339.9 million. Lower net finance cost and lower effective tax rate from the recognition of deferred tax assets mitigated the impact of the lower EBIT on the Group’s overall profitability.
Capital Expenditure (CAPEX) stood at 14.0% of overall revenue, or RM413.1 million. A significant portion of this investment was dedicated to fortifying its fibre infrastructure, delivering new customer acquisition, international subsea cables investment and 5G fibre network deployment to meet Government’s target of 80% coverage by year end.
Unifi sustaining growth trajectory
Unifi continues to deliver leadership in convergence service and solutions for both home and MSMEs customers. Unifi reported a 1Q2023 revenue growth of 4.3% from RM1.38 billion to RM1.44 billion contributed by both, growth in number of subscribers and average revenue per customer (ARPC).
Unifi fixed broadband subscription increased by 8.1% to 3.08 million propelled by aggressive sales, and promotions such as the 6-months complimentary speed upgrade offered to existing Unifi Home users and 7-days free viewing of all Unifi TV channels during Chinese New Year.
Unifi Mobile unveiled its latest offerings, the UNI5G prepaid and postpaid plans, which include complimentary 5G access for all current mobile subscribers. Additionally, Unifi introduced the Pakej Perpaduan Jalur Lebar Tetap (Home Internet) and Pakej Perpaduan Prabayar Mudah Alih (Prepaid Mobile) plans specifically designed for underserved communities, providing inclusive and ubiquitous connectivity for the community.
Unifi Business’ collaborative efforts with local government agencies have been instrumental in supporting MSMEs to digitally grow their businesses. As part of this initiative, Unifi Business launched a programme in Sabah that has resulted in a significant participation of local entrepreneurs.
TM One navigating challenging market and shifting demand
TM One recorded a 6.7% slowdown in revenue from RM773.7 million to RM721.9 million in the current quarter, largely due to the impact of price reduction and lower revenue from one-off customer projects.
The delivery of key projects across several industries shall set the pace for TM One in the coming quarters. TM One delivered a Private 5G solution to enable Smart Industry solutions and completed a hybrid cloud project that is instrumental to the IT backbone transformation of its customer. TM is also the only telco with a 100% completion record for the Point of Presence (POP) Phase 1 Project, successfully delivering 233 sites across the northern states, Sabah and Sarawak.
Building on the success of TM One 5G Sphere Partner Programme launched end of 2022 where more than 90 leading partners are registered today, TM One launched its Sandbox platform providing a secure and controlled environment for enterprise and Government customers with technology partners to co-create and commercialise innovative smart service solutions, which will propel their digitalisation and automation drive.
TM Global catalysing digital inclusivity
TM Global reported continuous growth in 1Q2023, with revenue increasing by 3.9% from RM625.1 million to RM649.2 million, contributed by higher data and data centre co-location services.
As the leading partner for High-Speed Broadband Access (HSBA), TM Global achieved the highest number of new installations in March, supporting collective industry growth throughout Malaysia. Additionally, close to 8,000 4G and 5G fiberisation site were deployed to meet the growing demands of industry players and enhance nationwide edge capabilities, further propelling national digital initiatives.
Internationally, TM Global secured deals from US-based hyperscaler and North Asia digital provider for its wholesale data centre solutions as well as a substantial deal from ASEAN telecommunication player for more than 10Tbps data requirement within this region. TM Global remains focused on positioning Malaysia as the preferred digital hub for the ASEAN region through its comprehensive and customised offerings for hyperscalers, global carriers and digital players.
Commentary and Outlook from Dato’ Imri Mokhtar, TM Group Chief Executive Officer
“2023 is expected to be a challenging year with changes in the regulatory landscape, heightened competition and other market structure changes. TM will continue strengthening its core business to be commercially sustainable as a Public Listed Company (PLC) whilst continuing to contribute to the nation’s growth via its role as a Government Linked Company (GLC).
“As the national connectivity and digital infrastructure provider, TM will continue to execute the fiberisation plan to support the Government’s National Digital Network (JENDELA) programmes as well as the 5G rollout nationwide. TM looks forward to continue playing an active role in the 5G implementation, leveraging its nationwide fibre infrastructure, extensive digital platforms (data centres, edge nodes) and rollout experience.
“We remain steadfast as we enter the final year of our 2021-2023 Transformation Programme, and pursue the next wave of growth beyond 2023. In line with our journey to become a human-centred TechCo, we announced the launch of TM’s new HQ and Campus, located in Cyberjaya. The campus will serve as a catalyst for a new way of working that drives agility and flexibility through digital collaboration and hybrid work environment, propelling innovation among our employees, customers and partners.
“We will continue to advocate sustainability efforts and strive for progress. TM has released our first Task Force on Climate-related Financial Disclosures (TCFD) report, 2 years ahead of Bursa Malaysia’s 2025 requirement. The report focuses on increasing transparency around the financial implications of an organisations’ climate-related risks and opportunities.
“Though cautious with the overall outlook, we remain optimistic with the prospects of increased hyperconnectivity, continuous growth investments in connectivity and digitalisation across all customer segments. TM will continue to enable a Digital Malaysia by offering comprehensive suite of communication services and digital solutions benefitting communities, businesses and Government.”
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TM collaborates with Malaysia telecommunications tower providers for access to tower sites facilities
The strategic collaboration affirms TM’s commitment and readiness to drive Malaysia’s Digital Economy aspirations as the national digital infrastructure accelerator Telekom Malaysia Berhad (TM) marked another milestone as the national connectivity and digital infrastructure provider when its wholesale domestic and international business arm, TM WHOLESALE, entered into a collaboration with nine (9) tower providers (TowerCos), enabling access to tower sites facilities. The nine (9) TowerCos are the members of Persatuan Penyedia Infrastruktur Telekomunikasi (PPIT), namely D'Harmoni Telco Infra Sdn Bhd, Melaka ICT Holdings Sdn Bhd, Perlis Comm Sdn Bhd, Infra Quest Sdn Bhd, Perak Integrated Network Services Sdn Bhd, EdgePoint Towers Sdn Bhd, PDC Telecommunication Services Sdn Bhd, Desabina Industries Sdn Bhd and Yiked Bina Sdn Bhd. The ceremony was held recently in Johor Bahru attended by TM and nine (9) other TowerCos. TM was represented by Amar Huzaimi Md Deris, Executive Vice President, TM WHOLESALE, while the TowerCos were represented by: Dato' Haji Mohd Rehat Ahmad, Chief Operating Officer, D'Harmoni Telco Infra Sdn Bhd, who is also the President of PPIT Dato' Mohd Fauzi Yaakub, Deputy Chairman, Melaka ICT Holdings Sdn Bhd Dato' Ramli Abd Rahman, Managing Director, Perlis Comm Sdn Bhd Ab Aziz Yunus, Executive Chairman, Infra Quest Sdn Bhd Iwan Che Wan Che Ismail, Chief Executive Officer / Managing Director, Perak Integrated Network Services Sdn Bhd Muniff Kamaruddin, Chief Executive Officer, EdgePoint Towers Sdn Bhd Hasmunir Hamid, Acting Chief Executive Officer, PDC Telecommunication Services Sdn Bhd Shikh Badrudden Shikh Ismail, General Manager, Desabina Industries Sdn Bhd Azhan Abdul Hamid, General Manager, Yiked Bina Sdn Bhd Under the collaboration, the nine (9) TowerCos will provide TM with access to their tower sites, including land and rooftop facilities. This will enable TM to connect the towers with its high-speed fibre optic network to support high quality network performance and capability. Commenting on the collaboration, Amar Huzaimi said, "TM through TM WHOLESALE, is committed to ensuring our national telecommunication industry is provided with cutting edge connectivity and extensive fibre infrastructure solutions as a catalyst to accelerate the delivery of a high quality digital experience to all Malaysians, true to our role as national digital infrastructure accelerator. This will allow service providers to serve their customers with faster connectivity speed and greater bandwidth capacity for the current 4G and future 5G services nationwide. This partnership further demonstrates our commitment as the enabler of Digital Malaysia in supporting the country's digital aspirations, which include the Jalinan Digital Negara (JENDELA) and the Malaysia Digital Economy Blueprint (MyDIGITAL)." Meanwhile, Dato' Hj Mohd Rehat said, "TM has been a long-standing partner of PPIT for over a decade, and together, we have developed a high level of trust among each other. After a few series of fruitful discussions, PPIT and TM have once again agreed to ink a new collaboration to continue to work hand-in-hand in respect of the access to tower sites facilities."
TM ONE AND AGROBANK FORGE FIVE-YEAR STRATEGIC COLLABORATION TO ACCELERATE DIGITAL TRANSFORMATION IN THE AGRICULTURE SECTOR
KOTA KINABALU, 8 AUGUST 2025 – TM One, TM’s enterprise and public sector business solutions arm, has formalised a five-year strategic collaboration with Agrobank to accelerate the digital transformation of Malaysia’s agriculture and agro-based MSME sectors. This long-term partnership underscores a shared commitment to modernise the nation’s agro financial ecosystem through secure, resilient and forward-looking digital infrastructure. The exchange of the document was formalised by Megawati Norhashim, Vice President, Enterprise Business, TM One and Zahid Ahmad Zawawi, Group Chief Operations Officer of Agrobank, during the Hari Peladang, Penternak dan Nelayan Kebangsaan (HPPNK) 2025 in Sabah. It was witnessed by YB Dato' Sri Arthur Joseph Kurup, Deputy Minister of Ministry of Agriculture and Food Security, Shazurawati Abd Karim, Executive Vice President, TM One and Datuk Yunos Abd Ghani, Chairman of Agrobank. As a leading financial institution focused on rural and agro-based development, Agrobank plays a critical role in empowering farmers, cooperatives, and MSMEs. The collaboration with TM One strengthens this mandate through the deployment of advanced connectivity, cloud, cybersecurity, and managed ICT services across Agrobank’s nationwide network. Shazurawati said, “This partnership represents a strategic, co-creative alliance to digitally empower Malaysia’s agro community. It aligns with key national priorities such as the National Agrofood Policy (NAP 2.0), and Shared Prosperity Vision 2030, advancing goals around rural digital inclusion, food security, and sustainable agricultural innovation. She added, “We are proud to work alongside Agrobank to unlock the long-term impact to this critical industry, leveraging digital solutions that enable financial inclusion, operational resilience, and sustainable growth. This is a pivotal part of TM’s Digital Powerhouse 2030 commitment to pioneer digital growth through technology leadership, shaping future-ready industries and creating inclusive digital progress for all Malaysians.” According to Dato’ Tengku Ahmad Badli Shah Raja Hussin, Group President and Chief Executive Officer of Agrobank, “We are honoured to collaborate with TM One in driving the digital transformation of Malaysia’s agro and rural sectors. This strategic partnership reflects Agrobank’s unwavering commitment to embracing innovation and technology as key enablers in enhancing the efficiency, accessibility and inclusivity of our financial services. With TM One’s proven capabilities, we are confident that this collaboration will strengthen our service delivery and empower agropreneurs nationwide through advanced digital infrastructure.” He added, “The agriculture sector, once regarded as traditional, is now evolving rapidly in tandem with digital progress. The integration of digital solutions demonstrates that agro-based industries are no longer left behind. As a key financier for sectors contributing to national food security, Agrobank is committed to empowering all key players in the industry including farmers and agropreneurs to thrive in a technology-driven economy. This partnership not only reaffirms our role as a development-focused institution but also reflects our readiness to support a future-proof agro ecosystem.” The partnership will include the delivery of a comprehensive suite of TM One’s Managed secured SDWAN services to Agrobank nationwide presence. These initiatives will enhance Agrobank’s operational resilience, network performance, and cybersecurity posture. Broadly, the collaboration will focus on leveraging TM One’s capabilities to provide secure, robust and scalable connectivity, especially in urban, rural and semi-urban areas to serve Agrobank and its customer base. Through this collaboration, TM One and Agrobank are enabling financial services, agriculture and digital infrastructure to converge seamlessly, shaping a more inclusive, secure and sustainable future for Malaysia’s agro-economy.
Jangkau Digital TM Reimagines Kampung Mukut, Pulau Tioman as Malaysia’s First Smart Eco-Village, Driving Rural Digital Inclusion and Nation-Building
KUALA LUMPUR, 14 August 2025 – Telekom Malaysia Berhad (“TM” or “the Group”) has identified Kampung Mukut, Pulau Tioman as the first village for its inaugural Jangkau Digital programme, reimagining the small coastal settlement as a Smart Eco-Village that blends digital connectivity, economic empowerment, education, and environmental stewardship. The initiative is aligned with the Government’s call for organisations to contribute in uplifting rural communities through sustainable and inclusive development. Home to just over 100 residents, Kampung Mukut is renowned for its crystal-clear waters, lush rainforests, serene waterfall, and the towering Dragon Horns of Tioman. Its remoteness has also meant limited access to connectivity and public infrastructure, challenges that Jangkau Digital seeks to address while preserving the village’s unique culture and biodiversity. The programme in Mukut was officially launched by His Royal Highness The Sultan Pahang, Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah, during his recent visit to the village. Amar Huzaimi Md Deris, TM’s Managing Director and Group Chief Executive Officer said, “Jangkau Digital TM is about building the right foundations for communities to thrive, from expanding digital access, to unlocking new economic opportunities, nurturing future-ready talent, and safeguarding environment. It reflects our role as a nation builder, ensuring that even the most remote communities are part of Malaysia’s digital future. In Mukut, we are working closely with the community and the Tioman Development Authority as our strategic partner to demonstrate that rural and island villages can progress sustainably, while preserving the heritage and natural beauty that make them unique.” Digital Foundation for Inclusive Growth The transformation begins with robust digital infrastructure across Pulau Tioman. The 75km submarine cable from Kuala Rompin that was deployed by TM, forms the backbone that connects the entire island to Malaysia’s national digital network, effectively bringing the world to Tioman and Tioman to the world. This is followed by the rollout of high-speed fibre broadband and expanded mobile coverage that now reaches all key settlements and tourism hotspots. This upgrade ensures that residents, businesses and visitors across Tioman enjoy stable, high-quality internet access, a critical enabler for economic activity, education, and tourism. In Kampung Mukut, this connectivity has been further strengthened with the installation of outdoor WiFi spanning the village from the jetty and school to the mosque, eateries, homestays, and along scenic trails, enabling tourists to navigate, locals to run online businesses, and students to participate in virtual learning without interruption. Complementing this, TM’s Vision AI CCTV systems have also been deployed at strategic points to improve public safety, manage visitor flows and support responsible tourism in line with Mukut’s eco-tourism appeal. MSME Empowerment & Economic Upliftment With strong digital connectivity as the foundation, entrepreneurs in Mukut are now better positioned to tap into the digital economy. Tourism operators, guesthouses, and boat service providers have been onboarded to visitmukut.com – a community-managed tourism portal powered by TM and enhanced with AI to deliver an end-to-end experience, from discovering Mukut’s natural beauty to booking and engaging with local operators. This is integrated with the Unifi Business Go Bookit app for seamless visitor experiences. This transition to online visibility is strengthening business resilience, particularly for operators who once depended solely on walk-in visitors. To support this shift, TM will conduct targeted training sessions to equip local MSMEs with skills in booking management, social media promotion, and digital content creation, with additional support extended to B40 entrepreneurs via the Sejahtera MADANI programme. By building these capabilities, TM aims to ensure that the economic benefits of tourism are shared more broadly across the community, while positioning Mukut as a destination that is digitally accessible. Equipping Students and Teachers for the Future The Jangkau Digital TM also brings the TM Future Skills (TMFS) to SK Mukut as the Champion School. SK Mukut is now linked to SMK Tekek, Tioman’s “nucleus” digital hub school, enabling resource-sharing and access to advanced digital tools. Through this collaboration, students are exposed to coding, robotics, 3D printing and AI learning modules – subjects that previously seemed out of reach in rural settings. Teachers in Mukut also benefit from training programmes that help them integrate STEM content into lessons and maximise the use of digital tools. Beyond the classroom, TM is investing in capability building for the community’s core sporting tradition - sailing. Efforts include upgrading essential infrastructure such as dedicated walkway and slipway to provide safe and convenient access to the waterfront. The Group also goes the extra mile by providing a comprehensive coach training and talent development programme, and providing official sports attire for the school’s sailing team. These initiatives are designed to inspire the students, enhance competitive readiness, and cultivate a new generation of talent capable of competing at the highest levels. This integrated approach ensures that Mukut’s youth can excel both in academics and in sports, proving that rural communities can nurture future champions on multiple fronts. Preserving Environment and Biodiversity In preserving Mukut’s charm, TM is embedding environmental stewardship into every aspect of development. The village’s coral reefs, rainforest trails, and marine biodiversity are recognised as irreplaceable assets, and planned coral protection and trail conservation programmes will ensure these remain intact for future generations. TM’s sustainability commitment extends to the seabed where the presence of submarine cables naturally fosters the formation of artificial reefs, providing vital habitats for marine life and cultivating to long-term biodiversity ecosystem. To further support eco-tourism safety, TM is enhancing measures to ensure the safety of both tour guides and hikers on treks to the Dragon Horns including providing GPS trackers and other digital solutions, helping Mukut maintain its reputation as a safe, well-managed destination for adventure tourism. By combining digital technology with environmental care, Jangkau Digital TM reinforces the idea that progress in rural communities can go hand in hand with sustainability. Greater Purpose of TM “Our aspiration to become Malaysia’s Digital Powerhouse by 2030 is grounded in our greater purpose to enable progress that is inclusive, sustainable, and meaningful for all. When students in Mukut can explore robotics, local entrepreneurs can reach customers worldwide, and young athletes can train for national glory, all while preserving their environment, we see the true value of digital transformation. Jangkau Digital TM in Mukut is just the beginning, and we are committed to extending this progress to other rural islands and communities across the nation,” concluded Amar.
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