01 Mar 2023
CONSOLIDATION OF TM’S BUSINESS IN MALAYSIA INTO TM TECH TO STRENGTHEN CONVERGENCE LEADERSHIP AND IMPROVE OPERATIONAL EFFICIENCY
Following the earlier communication on 14 December 2022, Telekom Malaysia Berhad (“TM”) today announced the internal reorganisation of its business in Malaysia into a single operating entity named TM Technology Services Sdn Bhd (“TM Tech”) following the approval of various bodies, including the High Court of Malaysia and the Malaysian Communications and Multimedia Commission.
Effective today, 1st March 2023, Telekom Malaysia Berhad will serve as an investment holding company for this single operating entity (TM Tech), along with other wholly owned subsidiaries, covering TM’s international, digital, education, support business and other non-wholly owned subsidiaries. This group in totality will continue to be governed by the current TM’s Board of Directors and managed by the same Senior Management team.
The reorganisation into TM Tech – which includes Unifi, TM One and TM Global, amongst others – marks the next phase of TM’s transformation that will reinforce its fixed-mobile convergence (FMC) position, further improve operational efficiencies and deliver a more seamless customer experience. Resource-wise, the reorganisation brings together the diverse talents, facilitating greater cross-functional collaboration and agility through more streamlined and simplified processes.
Group CEO of TM, Dato’ Imri Mokhtar explained, “As customer demand, increasing competition and stakeholder expectations reshape the industry, it is timely to consolidate our telco business in Malaysia into a single operating entity that will allow us to serve our diverse customer segments better and quicker, as well as drive operational efficiency.”
“We have recently notified all of our valued customers on this internal reorganisation via email and digital letters. At this point, for all payment transactions - the beneficiary name will now be “TM Technology Services Sdn Bhd” instead of “Telekom Malaysia Berhad”. All other payment details remain the same, such as the bank account and JomPAY code,” Imri added.
“The success of TM to shape a Digital Malaysia through technology that empowers communities, businesses and Government truly lies in our Warga TM. With majority of Warga TM realigned into this single operating entity, the individual job functions, entitlements and benefits will remain unchanged. Similarly, all of TM’s current obligations in terms of partnerships, vendor and service agreements will remain in effect.”
“We believe this reorganisation will strengthen TM’s role in advancing the country’s digital economy and to serve our growing customers in a more cohesive manner. It will reinforce TM’s competitive edge, solidifying our transition towards being a human-centred TechCo,” Imri concluded.
YOU MAY ALSO LIKE
TM One-UC Tati collaboration to enhance Terengganu’s tech research and development; enables education equity for students in the state
The Master Services Agreement (MSA) between TM & UC TATI will enable the digital transformation initiatives of this state government university college TM One, the enterprise and public sector business solutions arm of Telekom Malaysia (TM), has signed a Master Services Agreement (MSA) with University College Terengganu Advanced Technical Institute (UC TATI) to provide high speed managed data and Internet services at its Teluk Kalong Kemaman Campus and Kuala Terengganu City Campus respectively, for the benefit and use by the students, lecturers and staff. The partnership, which includes a complete end-to-end package of both Wide Area Network and Local Area Network effectively enables wireless connectivity throughout the campuses, and is part of the Terengganu-based institution's efforts to enhance its digital research and development field, as well as delighting student experiences post pandemic. In particular, TM One’s high-speed Internet services will support the Terengganu Big Data Institute (BDIT) located at UC TATI to conduct research and activities related to public data for the university college and the Terengganu State Government. With this, TM One enables UC TATI to explore new digital technologies such as Cloud-Based Services, Public Data and Disaster Recovery Centres that will enhance student learning as well as potentially serve the local Government and surrounding communities. General Manager of State Sales for TM One, Jamalullail Mohd said, “This agreement symbolises the strong partnership between TM One and UC TATI to provide next gen connectivity services for more contextual teaching and learning experiences to students. The accelerated adoption of digitisation has impacted the lives of Malaysians everywhere, with access to fast and reliable Internet services becoming a necessity in households, workplaces and learning institutions. This collaboration ensures educational equity and equal access to students from all parts of the country and we are pleased to support UC TATI in their transformation.” "This collaboration will also be a catalyst for UC TATI in its digital transformation journey and is among the first steps for us to meet the IR 4.0 revolution. In addition to enhancing our research and development efforts into Big Data and other key technologies, this Internet service will enhance the university's operational efficiency, teaching and learning, and overall student experiences – especially for those who are resident on-campus. Working with TM One enables us to improve our capabilities and the quality of our services in these fields and to bring our institution into the next phase of its growth," explained Professor Dr. Anuar Bin Ahmad, Rector of UC TATI.
TM PLEDGES RM4 MILLION FOR FLOOD RELIEF AND RECOVERY EFFORTS
KUALA LUMPUR, 16 December 2024 – TM announced at least RM4 million allocation, including cash assistance, to support immediate flood relief efforts for affected customers, communities, and employees nationwide. This is in support of the Sumbangan Ihsan MADANI initiative, aimed at ensuring timely support for those in need. TM installed complimentary Wi-Fi services at various flood relief centres (PPS) to ensure uninterrupted communication for flood victims and PPS’ administration. At the same time, TM’s network restoration team is working tirelessly to restore services for customers impacted by the recent monsoon flood especially in the East Coast region. This involves efforts to immediately divert key network elements for infrastructure that have been destroyed by the flood to minimise service downtime for the Government, enterprises and consumers. TM understands the challenges faced by the flood victims. Therefore, to ease their hardship, TM is committed to provide additional supports for the affected Unifi Home customers which include: • Free replacement of damaged Customer Premise Equipment (CPE) and network components, • A one (1) month subscription rebate for affected customers, and • An extension of credit terms to 60 days without service suspension. Through its social impact foundation, Yayasan TM (YTM) mobilised medical aid, food and other necessities with the support of its social impact partners. As Co-Secretariat and a member of the GLC/GLIC Disaster Response Network (GDRN) coalition, YTM assisted over 18,400 individuals via various initiatives including the MOF-GDRN Bantu Fund, to assist affected communities. Amar Huzaimi Md Deris, Group Chief Executive Officer of TM, emphasised the company’s dedication during this time of need. “We stand in solidarity with our customers, communities, and employees during these challenging times. Beyond restoring connectivity, our focus is on providing meaningful assistance to those affected, ensuring they can rebuild their lives with greater resilience. “We deeply appreciate the patience and understanding of our customers as we work to restore our networks, despite challenges due to power outages and damaged equipment in certain locations. Rest assured, our dedicated teams are fully committed to resolve these as swiftly as possible. To bolster our efforts, we have deployed the 56 Rejimen Semboyan Pakar Telekom Askar Wataniah, a team of TM volunteers, to provide on-ground assistance, deliver emergency services, and expedite restoration works. “TM is grateful to serve alongside the Ministry of Communications, Malaysian Communications and Multimedia Commission (MCMC), National Disaster Management Agency (NADMA), Malaysia Civil Defence Force (APM) and GDRN members in supporting collective efforts to assist communities in need. We extend our heartfelt thanks to these agencies and social impact partners for their dedication and collaboration in ensuring timely and effective support. “Through these partnerships, we supported more than 28,000 individuals via various disaster relief and preparedness programmes, ensuring faster distribution of aid across the country. We remain steadfast in our efforts to restore connectivity and essential telecommunications services and aiding recovery for those affected by the floods," concluded Amar. Earlier last week, Amar visited flood-affected areas in Kelantan and Terengganu, including the Central Disaster Operations Control Centre (PKOB) in Kota Bharu. During his visit, he handed over additional care packages to be stored at the control centre. These care packages will be mobilised to affected areas and distributed to the flood victims as needed. In support of its employees, TM launched an internal crowdfunding initiative to help provide affected Warga TM with essential home amenities, ensuring they could resume their daily lives as quickly as possible. This initiative aligns with TM's "Ini Cara Kita" culture statement, embodying the spirit of caring and togetherness. Additionally, TM extended financial aid to 131 Warga TM whose homes were damaged by the floods. Early flood aid and damage claims have already been disbursed, with further assistance underway. The company urges everyone to prioritise safety during this challenging season and remains committed to restoring essential services and aiding long-term recovery.
TM announces another steady full year performance (FY2021) with EBIT up 6.6% at RM1.71 billion; revenue up 6.4% at RM11.53 billion; declares 6 sen per share dividend
As a result of jump in revenue and continuous cost optimisation initiatives, Earnings Before Interest and Tax (EBIT) increased 6.6% to RM1.71 billion from RM1.60 billion in 2020 despite one-off provisions, impairments and accelerated depreciation Telekom Malaysia Berhad (TM or the Group) delivered yet another healthy set of financial results for the Full Year 2021 ended 31 December 2021 as compared to the same period last year (YoY), despite protracted impact from the ongoing pandemic on the economic and business front. Fueled by strong growth in unifi revenue and fixed broadband subscribers, as well as sharp growth in the TM Wholesale business which registered increasing data demands from hyperscalers, and international and domestic service providers, TM recorded a 6.4% rise in revenue to clock in at RM11.53 billion from RM10.84 billion in 2020. This marked revenue improvement as well as the Group’s continuous cost optimisation initiatives led to the increase in Earnings Before Interest and Tax (EBIT), up 6.6% YoY to RM1.71 billion, from RM1.60 billion last year. Profit After Tax and Non-Controlling Interests (PATAMI) at RM895.2 million dipped 11.9% contributed by higher taxation including provision for Cukai Makmur, lesser interest income and forex losses, as well as impairment of TM’s mobile assets as the Group prepares itself for 5G. Based on its steady financial position and strong Free Cash Flow generation, the Board of Directors proposed the final interim dividend at 6 sen per share, resulting in a total dividend of 13 sen per share for 2021, in line with the Group’s growth investment strategy. CAPEX for the year was reported at RM1.70 billion, or 14.7% of revenue, reflecting TM’s commitment to reinvest in business expansion, new growth areas and provide great experience and services for its growing base of customers. Free Cash Flow at RM2.19 billion rose 9.5% from RM2.00 billion, ensuring steady growth ahead of a demanding future. unifi: Record-breaking revenue, total subscribers It was a landmark year for unifi, contributing to the Group’s strong performance. Overall unifi revenue grew by 10.3% driven by increased fixed broadband subscribers, with 2.78 million cumulative registered subscribers - the highest number of unifi and fixed broadband customers registered, as well as highest number of ports installed. In addition to unifi’s drive to reduce broadband downtime to the absolute minimum for its customers, the business introduced five #unificares initiatives to refine its end-to-end customer experience, with the highlight being unifi’s 24-hour service restoration guarantee, the first of its kind in the Malaysian telecommunications industry. In its effort to support SME recovery and growth, unifi has offered more than 377,000 local SMEs special packages with complete digital ecosystem to help them to grow their business and stay competitive. unifi will continue to maintain its leadership in convergence of broadband, content, mobile and solutions for both home and SMEs customers. With online connectivity playing a central role to enable Digital Malaysia, unifi bridges the connectivity gap by serving customers with innovative and high-quality products and services. TM Wholesale (TMW): Realising 5G and Malaysia’s digital hub aspiration TM continues to drive wholesale business for both domestic and international segments via TM Wholesale (TMW). With a strong performance last year, TMW’s posted revenue grew by 14.7% due to solid partnership expansion with domestic and international customers. Domestically, as the preferred fibre service provider, TMW will continue to pursue 4G and 5G fibre infrastructure deployment as well as promoting collaboration with domestic service providers, in line with the Government’s JENDELA initiative. The 5G fibre leasing services (worth RM2 billion over 10 years) for Digital Nasional Berhad (DNB)’s 5G infrastructure needs, is a testament of TM’s commitment to infrastructure sharing in enabling excellent wireless solutions and services. TMW also recorded the highest active ports subscription for wholesale High-Speed Broadband (HSBB) access with more than 550,000 cumulative ports for Malaysian fibre broadband providers. On the international front, TMW continues with its aspiration to become a digital hub for the ASEAN region through strategic collaborations with hyperscalers and global service providers. The year saw a solid achievement with 190 new deals from hyperscalers and global service providers for various wholesale International Data offerings. This translated into the highest annual revenue contribution from major hyperscalers worldwide, a milestone year in building a regional hub position for Malaysia. TM ONE: Custom solutions and digital adoption amid a challenging landscape TM ONE is expected to remain competitive amidst the challenging economic and business environment. This is driven by its strong value proposition of offering the end-to-end managed services and digital solutions, backed by robust digital connectivity and infrastructure. As the only home-based Cloud Service Provider (CSP) with data sovereignty assurance, TM ONE will continue enhancing its Cloud service as a complete digital solution by embedding analytics, smart services/IoT and cybersecurity to cater for the key industry verticals. Enterprises and public sector services are on an accelerated path to digitally transform, leveraging on cloud architecture and smart services as a foundational pillar to unlock innovation opportunities, stay resilient and maintain a competitive edge, all in line with Malaysia’s MyDIGITAL aspirations. In becoming a trusted cloud partner, TM ONE focused its efforts in boosting proficiencies and competencies of its solution consultants, technology experts as well as international certifications. It has attained four (4) International Standard certifications (ISO/IEC) for Cloud α (pronounced as Cloud alpha) on Information Security Management System (ISMS), Personal Data Protection Act (PDPA), Business Continuity Management System (BCMS) and Cloud Specific Controls. Commentary and Outlook from Imri Mokhtar, TM Group Chief Executive Officer “As the enabler of Digital Malaysia, TM remains steadfast in its efforts to realise the national digital aspirations. We are committed to support the Government’s efforts to re-build the economy post-pandemic. For 2021, TM has shown positive results, driven by the New TM Transformation Programme which has delivered overall growth in TM’s revenue and EBIT. Cost rationalisation has also significantly improved the Group’s profitability. As TM enters its second year of transformation in 2022, we are activating more programmes to ensure we quickly move forward as a growth company, and keep pace with our trajectory. TM’s revenue growth is expected to remain intact, in line with the Group's market guidance, which is between low to middle single digit growth, while EBIT is projected to be more than RM1.80 billion, driven by TM’s three Lines of Business: unifi, TM ONE and TM Wholesale. We expect to invest between 14% to 18% of our revenue this year on Capex, reflecting our continued commitment to reinvesting into growth areas, capability, and capacity building, as well as enhanced customer experience. In promoting sustainability, TM aligns its ESG (Environmental, Social, Governance) vision and commitments to national and global aspirations. For Environmental, TM is committed to achieve carbon emission reduction by 30% in 2024, 45% by 2030 and Net-Zero emission by 2050. On Social, TM is set to enable MyDIGITAL Blueprint 2025 targets by ensuring at least 70% of premises have access to high-speed Internet. Under Governance, TM works hand-in-hand with the Malaysian Anti-Corruption Commission (MACC) to continue upholding our zero-tolerance to any form of corruption and maintaining the highest standards of corporate governance. This year, we will continue to power a digital nation, by delivering great Customer Experience, Solutions and Connectivity Excellence. This is made possible with unwavering support from its core execution engine; the employees or "Warga TM" who are fully dedicated and committed to enabling a Digital Malaysia, bridging the digital divide and in step, reducing the income divide.” In its pursuit to strengthen its core connectivity and invest more in digital, TM is future-proofing the organisation with future-ready skills and digital workforce, as part of its aspiration in becoming a human-centred technology company.” Guidance for 2022 is summarised below: Revenue Growth Low to middle single digit growth Low to middle single digit growth EBIT More than RM 1.8 billion CAPEX / Revenue Between 14% - 18%
NEWSLETTER
Just drop your details and stay updated with the world of Telekom Malaysia. We promise – no spam!