02 Nov 2023
TM Integrity Day 2023 Emphasises “Uncompromising Integrity” as Cornerstone of Corporate Governance
KUALA LUMPUR, 2 November 2023 – TM reaffirms its commitment to integrity, corporate governance, and ethical business practices as it celebrates TM Integrity Day 2023 (TMID). This annual event serves as a platform to reinforce its core values among Warga TM, business partners and its supply chain ecosystem.
The theme ‘Uncompromising Integrity’ was chosen to underscore TM's dedication to upholding the highest standards of compliance and ethics in all aspects of its operations. Through these principles, TM continues to strengthen its corporate governance and culture of responsible business conduct.
The event featured a forum titled “Strengthening Integrity & Governance” with insights from Tan Sri Abu Kassim Bin Mohamed, Chairman of the Advisory Board of the National Centre for Financial Crime Prevention, and Datuk Dr. Anis Yusal Bin Yusoff, Director of the Centre for Leadership and Professional Development (UM Lead). The forum was moderated by Nik Azli Bin Abu Zahar, Group General Counsel of TM. In addition to the forum, various programmes were organised, including a theatre performance by Akademi Seni Budaya dan Warisan Kebangsaan (ASWARA).
Dato’ Zainal Abidin Bin Putih, Chairman of TM, emphasised in his launching speech, “High integrity and efficient governance form the bedrock of any organisation and are essential for building trust among stakeholders. Key principles such as transparency, accountability, fairness, and responsibility in delivering services to customers must be upheld to ensure the sustainability of the organisation.”
He added, “Beyond qualifications and skills, another essential attribute that every individual should possess is Integrity. The absence of these qualities will not only harm the individual but also have a detrimental impact on the company's performance and reputation”.
The event was broadcasted live to facilitate broader participation from Warga TM and TM’s business partners virtually. TM continues to foster a culture of integrity, accountability, and ethical conduct, ensuring a more sustainable future for all stakeholders.
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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 data centres now powered by clean energy
TM secures Green Electricity Tariff (GET) from TNB for its KL, Cyberjaya and Johor Bahru data centres, adding to their Green Building Index (GBI) and Leadership in Energy and Environmental Design (LEED) certifications Customers of data centre services provided by Telekom Malaysia Berhad (TM) will now be able to accelerate their sustainability journey, with the Group recently securing Green Electricity Tariff (GET) from Tenaga Nasional Berhad (TNB) for three (3) of its data centres. The data centres comprise the Klang Valley Core Data Centre (KVDC) in Cyberjaya, Iskandar Puteri Core Data Centre (IPDC) in Johor Bahru and KL City Data Centre (CTDC) in Brickfields. This adoption of green energy supply complements the data centres’ Green Building Index (GBI) and Leadership in Energy and Environmental Design (LEED) certifications obtained previously for their efficient energy use, further cementing TM’s commitment towards reducing carbon emission and impact on the environment. GET is one of the Government’s initiatives to provide Malaysian consumers the option to use green electricity coming from renewable energy supply as the country moves towards achieving net-zero Greenhouse Gas (GHG) emissions by the year 2050. GET subscribers are supplied with electricity coming from solar and hydro generators instead of fossil-fuel based. Imri Mokhtar, Group Chief Executive Officer, TM said, “The largest source of carbon emission worldwide is from electricity generation as well as heat management, and data centres use significant amounts of power to run the IT and Cloud workloads. This indirectly contributes to high level of carbon emission as the electricity typically comes from fossil fuel-based energy supply. With this clean electricity, we will substantially reduce the impact our data centres have on the environment, while continuing to enable our customers, from large enterprises, the public sector or global hyperscalers, to enjoy the convenience, stability and security of our data centre services. “For our data centre customers who are conscious of the green efforts in their business operations, GET fulfills this need, enabling them to deliver their products and services in a greener manner to their end customers. This green initiative by TM will provide a total energy saving of 27 million kWh per year, which is equivalent to a total carbon emission of 19,134 metric tons,” he added. “To put that into perspective, this is comparable to the amount of electricity used at 3,476 homes for a year, or 9.7 million litres of petrol consumed by the average automobile.” The adoption of GET is the latest among the Group’s various initiatives under the Environmental pillar of its Environmental, Social and Governance (ESG) commitment. Mindful of its responsibilities towards environment conservation and climate impact, the Group has included sustainability factors in all its operations in addition to running nature preservation activities via its foundation, Yayasan TM. In promoting sustainability, TM remains steadfast in its ESG commitments. For Environmental, the Group will progressively cut down emissions by 30% in 2024, 45% by 2030 and achieve Net-Zero emission by 2050. On Social, TM is set to provide access to high-speed internet to at least 70% of premises nationwide. The Group promotes gender diversity in decision-making roles by having a minimum of 30% women on its Board of Directors and in Management. Under Governance, TM will continue working with the Malaysian Anti-Corruption Commission (MACC) to uphold its zero-tolerance to any form of corruption and maintain the highest standards of corporate governance.
TM One teams up with sap to become first local hyperscaler for partner managed cloud
This collaboration is aimed at empowering enterprise digitalisation to drive and support MyDIGITAL aspirations towards a technologically advanced economy via SAP and TM One’s Cloud infrastructure TM One, the enterprise and public sector business solutions arm of Telekom Malaysia Berhad (TM) and SAP Malaysia Sdn Bhd (SAP), recently signed a Memorandum of Understanding (MoU) for a strategic collaboration to accelerate the digital transformation of Malaysian enterprises and to improve their operating efficiency through digital solutions. The event also announced the appointment of TM One as the first local hyperscaler to become the Partner Managed Cloud (PMC) provider for SAP business suite solutions in Malaysia. With this appointment, TM One's α Edge (pronounced as Alpha Edge) will provide cloud infrastructure to empower SAP's Enterprise Resource Planning (ERP) solutions in meeting the business needs of TM One's enterprise customers. Commenting on the appointment, Shazurawati Abd Karim, Executive Vice President of TM One said, "The appointment by SAP Malaysia is another milestone for TM One as we continuously expand and strengthen our Cloud α offerings. This time, we are making available to our customers the largest sovereign-Cloud to empower SAP Business One solutions targeted at SME and medium-sized enterprises. With this solution, our customers will be able to enjoy secure, world-class Cloud-based enterprise business solutions, hosted on TM One's intelligent Cloud – α Edge cloud infrastructure. It provides unmatched Cloud connectivity and cybersecurity as well as full data residency in Malaysia." "SAP is a renowned global technology powerhouse that has accelerated the digitalisation of millions of businesses through its ERP solutions. We view this appointment as timely in TM One's continuous journey towards taking transformation forward for Malaysian enterprises. As we innovate and continue to empower our customers in the current digital economy, SAP is the right organisation to drive the digital transformation of businesses, thus elevating the country into Digital Malaysia. This befits TM Group's unique role as the enabler of Digital Malaysia's aspirations, committed to serving a more digital society, digital business, digital industry and digital Government," added Shazurawati. As SAP's PMC provider, TM One is able to offer its customers a full subscription-based model of SAP Business One hosted on TM One's α Edge, bundled with managed services. This arrangement enables organisations to migrate their enterprise systems to the Cloud with confidence, visibility, and predictability. Through this approach, TM One customers will also be able to enjoy ready-to-use fully managed solutions, rapid time-to-value, lower total cost of ownership (TCO) and scalability and flexibility in deployment. In addition, TM One is in discussions with SAP to finalise its scope of offerings by expanding the PMC programme to SAP S/4HANA Intelligent Enterprise solutions to target large enterprise customers. As part of this tie-up, TM One and SAP will also explore a co-creation and innovation partnership that entails transformation initiatives for 5G use cases, Customer Experience, Procurement & Digital Supply Chain and Human Experience Management. Meanwhile, Hong Kok Cheong, Managing Director, SAP Malaysia said: "True digital transformation is the fundamental rethinking of the customer experience, business models, and operations to find new ways in delivering value, generating revenue and improving efficiency. This can be done by leveraging intelligent technologies such as ERP solutions, Artificial Intelligence (AI) and the Cloud. With SAP solutions hosted on TM ONE's α Edge, businesses can harness the power of their data and build a truly intelligent enterprise, while accelerating trusted outcome-driven innovation, real-time decision making, and thrive in the digital economy." SAP is today the world's leading enterprise applications provider. Across the globe, SAP customers include 92% of the Forbes Global 2000 companies, 98% of the 100 most valued brands, 97% of the greenest companies (according to Newsweek), while approximately 80% of SAP's customers are SMEs. For more information about TM ONE Cloud α solutions, visit www.tmone.com.my/solutions/cloud-services and for more information on SAP, visit www.sap.com/sea/index.html.
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