07 Jul 2023
TM Announces Upcoming Change In MD / Group CEO
Telekom Malaysia Berhad (TM), is pleased to announce a change in its executive leadership effective 1 August 2023. The change sees Amar Huzaimi Md Deris as the new Managing Director / Group CEO of TM, succeeding Datuk Imri Mokhtar, who completes his 3-year term on 31 July 2023.
Currently heading TM's domestic and global wholesale business, Amar is another example of TM's home-grown talent, after Datuk Imri. Beginning his career with TM after graduating in 1998, Amar’s roles have ranged from financial control, internal audit, corporate and regulatory affairs, Group CEO’s office, culminating in his current P&L position at TM Global. His strategic vision, combined with operational experience and grasp of global leading technologies, ideally positions him to steer TM's evolution from a Telco to a TechCo.
His achievements have not gone unnoticed, as evidenced by his recognition as one of CPA Australia's 40 young business leaders (2012) and by Capacity Media's 'Power 100' list in wholesale carrier community (2019, 2023). These accolades further attest to his leadership capabilities and the promising future he holds at the helm of TM.
Speaking about his upcoming role, Amar said, "Datuk Imri has set the right path for TM, with the strengthened foundation from the turnaround and pursuit of new growth areas – charting the shift from a Telco to a TechCo. I am proud to have been part of that journey; and now, I am enthusiastic to follow through and lead TM to the next level."
Datuk Imri expressed his confidence in Amar’s appointment, saying, “Amar is an exceptional TM-grown leader with a proven ability to navigate the business and deliver results. I have full confidence that TM shall attain greater success under Amar’s leadership. I extend my best wishes to Amar, the leadership team and Warga TM as they embark on the next chapter of TM’s growth journey.”
The company wishes to extend its gratitude to Datuk Imri for his tenure as MD/GCEO which has seen notable turnaround and growth, and his total of 21 years serving in TM. With the appointment of Amar Huzaimi as the new MD/GCEO, TM is confident it will continue to innovate and grow, building upon its success and further enhancing its role as the enabler of Digital Malaysia.
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TM DELIVERS LANDMARK 2022 PERFORMANCE (FY2022) Revenue up 5.1% at RM12.12 billion; EBIT up 22.2% at RM2.09 billion; PATAMI up 27.7% at RM1.14 billion
FY2022 Key Highlights (vs FY2021) · Operating Revenue grew 5.1% from RM11.53 billion to RM12.12 billion, with growth across all customer segments and product lines · EBIT grew 22.2% from RM1.71 billion to RM2.09 billion, driven by strong revenue growth and improved cost efficiency · PATAMI grew 27.7% from RM0.90 billion to RM1.14 billion, contributed by lower financing cost · CAPEX investment at 20.0% of revenue or RM2.43 billion, highest in 5 years primarily on growth in fibre service and network expansion · Final interim dividend at 7.5 sen per share declared amounting to RM286.6 million, with total dividend of 16.5 sen per share amounting to RM627.5 million for 2022 · ESG rating upgraded, FTSE Russell rated 3.6 from 3.1 in 2021; CDP rated ‘B’ from ‘C’ in 2021. Both above industry average · FY2022 overall performance showed strong results with good trajectory and operational excellence across all lines of business The financial year 2022 (FY2022) performance, ended 31 December 2022, represents Telekom Malaysia Berhad’s (TM) progress of its 3-year transformation programme (2021-2023). Moving into the final year of this transformation phase, TM remains committed to its focus in delivering value to its stakeholders. Operating revenue grew by 5.1% to RM12.12 billion, from RM11.53 billion in 2021, fuelled by demand in connectivity, solutions and infrastructure. TM continued to strengthen its core businesses across Unifi, TM One and TM Global amidst intensified competition in the market. Through revenue growth and improved cost efficiency, TM’s Earnings Before Interest and Tax (EBIT) grew by 22.2% to RM2.09 billion, from RM1.71 billion last year. Profit After Tax and Minority Interest (PATAMI) rose to RM1.14 billion from RM0.90 billion, up 27.7% through higher operating profit and lower financing cost. Capital Expenditure (CAPEX) stood at 20.0% of overall revenue, amounting to RM2.43 billion invested to deliver growth in fibre services, network modernisation and upgrades. Unifi’s continuous growth momentum Unifi continues its leadership in converged solutions of fixed broadband, mobile services, digital content and solutions for both consumers and MSMEs, recording a revenue growth of 7.5% from RM5.22 billion to RM5.61 billion contributed by increased number of home and MSME customers. Unifi fixed broadband customers grew by 9.3% and exceeded the 3 million mark in 2022. To celebrate this milestone, customers were rewarded with free viewing of all 72 Unifi TV channels for one month, as well as pay-per-view movie discounts in appreciation for their trust and loyalty. Unifi launched its 5G services in November 2022, offering Uni5G plans to Unifi Mobile postpaid and prepaid customers. 5G will reinforce TM’s converged leadership to provide the widest and fastest all-in-one solution for fixed broadband, mobile service and digital content. Unifi Business’ digital solutions continue to boost and support MSME’s digitalisation needs from cloud storage, eCommerce hub, cybersecurity and digital marketing, serving critical needs from connectivity to digital solutions, accelerating their business growth. TM One drives enterprise-grade innovative solutions TM One reported a 0.5% growth in revenue from RM3.32 billion to RM3.34 billion in 2022, after several years of revenue decline amidst changing market dynamics and competitive landscape. This is attributed to higher recurring revenue and bespoke solutions deployment, as a trusted technology partner for large enterprises and the Government. Utilisation of data centre space and power have also increased in 2022. The twin-core data centre of KVDC and IPDC have obtained Green Electricity Tariff (GET) from TNB as well as Green Building Index (GBI) and Leadership in Energy Environmental Design (LEED) certifications. To strengthen its partner ecosystem, TM One launched ‘5G Sphere’ in October 2022 and today counts on over 70 leading technology and smart solution partners to accelerate the co-creation of 5G use-cases. On the other hand, Credence is advancing enterprise’s ‘cloud-first strategy’ as well as developing technologically-skilled professionals to accelerate cloud adoption in Malaysia. TM Global positions Malaysia forward as a digital hub in the region TM Global (rebranded from TM Wholesale) delivered a strong performance which made a significant contribution to the overall 2022 performance. TM Global’s revenue grew 7.8% from RM2.58 billion to RM2.78 billion, on the back of higher domestic data and international digital demand. Domestically, TM Global is the preferred partner for High-Speed Broadband Access (HSBA) with the highest new installation in 4Q 2022. Advancing the country’s 5G rollout, almost 4,000 fiberisation sites were completed for the year. Internationally, TM Global closed deals from US-based hyperscalers and Asia-Pacific carriers for its wholesale data centre solutions and international data services, elevating Malaysia as a trusted digital hub for the ASEAN region. Commentary and Outlook from Dato’ Imri Mokhtar, TM Group Chief Executive Officer “2022 was a milestone year for TM, tracking well in our transformation with growth across our business segments – Unifi, TM One and TM Global, and cost efficiency improvement. The stronger financial position places TM in a position to deliver better value and benefits for our stakeholders – customers, shareholders, partner ecosystem and community. “TM is committed to continuously invest in shaping a Digital Malaysia through technology that empowers communities, businesses and Government – not just in our core business, but also in new, adjacent growth areas such as cloud, data centre, cybersecurity and platform-services. “Sustainability will also be a domain we strive to make continuous progress. We have seen improvements in TM’s ESG ratings, for example the FTSE Russell ESG score rising from 3.1 to 3.6 in 2022 and also the CDP rating upgrade to ‘B’ from ‘C’ last year, both above the industry average. On governance, TM upholds transparency, disclosure and zero-tolerance to all forms of corruption, receiving the Gold Category in the recent Integrity, Governance and Anti-Corruption Award (AIGA) 2022. “As part of TM’s next transformation to become a human-centred TechCo, we announced a reorganisation in December 2022 to streamline our core businesses and subsidiaries under a new entity named TM Technology Services Sdn Bhd (TM Tech). TM Tech is set to become the main operating entity of the Group with effect from 1 March 2023. This new corporate structure will be the catalyst for the next phase of TM’s transformation to reinforce its fixed-mobile convergence leadership, further improve operational efficiencies and deliver a more seamless customer experience. “On the back of our current business momentum, there are new opportunities in the adjacent growth areas but also industry headwinds in terms of regulatory policy and higher technology costs. We are continuously assessing the impact of industry developments and will work closely with key stakeholders towards providing technology that is accessible to all in this digital era.”
TM’s commitment to combat corruption and reinforcement of integrity as organisational DNA
Organised annual TM Integrity Day 2022, in collaboration with MACC, SIRIM, PDRM, IIM, TI-M and others TM adopts the highest level of integrity and ethics that uphold the standard of its employees’ behaviour and conduct by championing high integrity and anti-corruption practices in its working environment. It reflects TM’s commitment in adhering to good corporate governance and fulfilling its responsibilities towards investors and other stakeholders. This is maintained through rigorous awareness, internalisation and enforcement efforts guided by its ethics and integrity policies. To demonstrate its commitment and continuous effort to upholding high integrity, governance, and transparency in its business operations, Telekom Malaysia Berhad (TM), has organised its annual TM Integrity Day 2022 (TMID) on 1 November 2022, in conjunction with the National Integrity Day which is observed every November. The many highlights of TMID included MS ISO 37001:2016 certification handover by SIRIM, recitation of the corruption-free pledge followed by a forum entitled, “Uncompromising Integrity”. The TMID 2022 was launched by Datuk Seri TKPj. Norazlan Mohd Razali, Deputy Chief Commissioner (Prevention) of Malaysian Anti-Corruption Commission (MACC), witnessed by Tan Sri Mohammed Azlan Hashim, Chairman of TM Group and Imri Mokhtar, Group Chief Executive Officer of TM. Also present were Datuk Ir. (Dr) Khairol Anuar Tawi,Chairman SIRIM QAS International Sdn Bhd, while Datuk Wan Suraya Wan Mohd Radzi, Chief Executive Officer of Malaysian Institute of Integrity (IIM), and Dato’ Allaudeen Abdul Majid, Deputy Director, Department of Integrity and Standard Compliance (JIPS) PDRM attended as panelists for the forum, moderated by Dr. Muhammad Mohan, President of Transparency International Malaysia (TI-M). TM’s proprietary Organisational Anti-Corruption Plan (OACP) 2021–2025 launched last year, was developed to closely align with the National Anti-Corruption Plan (NACP) 2019-2023 geared towards improving transparency, and embedding the principles of integrity, good governance, compliance, and accountability in ensuring governance in the public and corporate sectors in Malaysia. TM OACP is one of the policies developed in tandem with Section 17A of the MACC Act 2009, in accordance with the standards set by IIM. “At TM, "Uncompromising Integrity" is one of the corporate values that must be embraced by every TM employee to fulfill our responsibilities to all stakeholders. We take any misconduct that involves integrity in this organisation very seriously,” said Tan Sri Mohammed Azlan. “I hope that all TM employees and Business Partners will continue to carry out the best duties and responsibilities to the company in the effort of TM to drive the aspirations of Digital Malaysia,” he added. “Our OACP is a 5-year plan to further strengthen TM’s existing ethics and integrity ecosystem among Warga TM, business partners, vendors and suppliers. The OACP clearly defines the focus areas and strategic initiatives to mitigate corruption, integrity and governance risks. It is the duty of every TM employee and business partners to act in the best interest of TM and maintaining the highest degree of integrity, transparency, and accountability,” he further commented. At the event, Imri led the citation of the corruption-free pledge together with Tan Sri Azlan, TM Board of Directors, Senior Management, Business Partners and all Warga TM nationwide in the presence of Datuk Seri TKPj. Norazlan. The pledge is an oath voluntarily taken by TM’s leadership and its employees proclaiming their commitment to carrying out their duties with transparency, responsibility and accountability. Good governance rests with the people. As TM evolves into a human centred TechCo, Warga TM must be empowered in upholding the company values. TM’s company-wide efforts to instill a high level of integrity amongst Warga TM began in 2002 by establishing various policies and guidelines such as TM OACP, certified Anti-Bribery Management System (ABMS) for high-risk divisions, TM Code of Conduct & Business Ethics, Whistle Blowing Policy, Anti-Corruption Guidelines, Ethics Hotline and several others to infuse transparency, accountability and responsibility amongst its employees and Business Partners.
TM aspires towards a human-centred technology company in delivering digital Malaysia following successful 37th AGM
2021 a milestone first-year of the New TM Transformation Telekom Malaysia Berhad ("TM" or "the Group") today successfully concluded its 37th Annual General Meeting, with all 13 Ordinary Resolutions and one Special Resolution tabled duly approved by its shareholders. The Meeting was conducted online for a third consecutive year to allow maximum flexibility for engagement with shareholders. The event saw over 1,000 shareholders attending virtually. Hosting the proceedings for the first time, Tan Sri Mohammed Azlan Hashim, Chairman of TM's Board of Directors said, "2021 has been a milestone first-year in our New TM Transformation, with the Group setting a solid foundation as a growth-oriented PLC investing for optimum long-term returns for its shareholders, while also continuing its nation-building efforts to realise a truly Digital Malaysia." Alongside the Board of Directors, key senior leaders including Imri Mokhtar, Managing Director and Group Chief Executive Officer; and Razidan Ghazalli, Group Chief Financial Officer were also in attendance to offer insights into the 2021 Audited Financial Statements and the Group's moving forward business priorities. "In 2022, we aim to continue growing our operating revenue by strengthening our core business momentum to improve profitability, enabling us to invest for future growth. Our first quarter of 2022 recorded steady revenue growth at RM2.89 billion, an increase of 2.9% from this same period last year, despite heightened competition. We also ramped up our transformation initiatives and delivered profit after tax and non-controlling interests (PATAMI) at RM339.9 million, or 4.4% higher. We will continue to optimise cost and improve productivity in our effort to raise EBIT to more than RM1.8 billion," Imri explained. He added: "We are intensifying our efforts in the remaining seven months to deliver the next chapter of our Transformation. We will look at a total CAPEX spend between 14-18 per cent of revenue, with spending primarily focused on network expansion and modernisation together with enhancing customer experience." unifi will continue to maintain its leadership in fixed broadband and enhance its Fixed-Mobile Convergence (FMC) proposition, enriched with TV and streaming content. This reflects its commitment to improve its FMC customer experience with better and seamless service. unifi will also grow its SME digital platform as a one-stop service centre for solutions catering especially to SMEs nationwide. TM Wholesale will continue to enable industry broadband and 4G network via its fibre infrastructure, with the ongoing 5G rollout further strengthening that role. On the international front, it will further serve other OTTs and hyperscalers with connectivity and data centres, moving towards establishing Malaysia as a digital hub for ASEAN via new submarine cables, enhanced data centre solutions, and edge computing. TM One, as the sole home-based cloud service provider will also offer end-to-end managed services with robust connectivity and infrastructure. In addition to ensuring data sovereignty and security for the MyGovCloud initiative, TM One will be ramping up its data centres to support the nation's Cloud First agenda. Recognising that the future is digital, TM has also invested in strengthening its digital services through Credence, a new arm that will focus on expanding the capabilities of enterprises in their digital transformation journey. Helmed by senior leaders from the technology sector, this new business will serve existing TM customers as an end-to-end Cloud and Services solution partner, offering services from tech infrastructure to business insights, IT landscape migration, SaaS, managed services as well as analytics. While improving connectivity and digitisation solutions to enable a better Malaysia, the human factor remains the true centre of TM's growth agenda. Imri concluded: "Our aspiration is to evolve towards becoming a human-centred technology company. From our beginnings as just a fixed telco, we are now a converged telco providing voice, internet and data through both fixed and mobile technology, which further delivers content, data centre and cloud services. The next step is to evolve from delivering converged connectivity into a human-centred technology company – delivering lifestyle and business solutions for our customers with innovative digital technology and applications. "In a market where telcos and other digital players now have a play in almost every solution, customer experience will be the true differentiator in attracting and retaining customers."
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