Both parties exploring a working mechanism to cover spectrum, business case, ecosystem and key technologies towards empowering Digital Malaysia.
Telekom Malaysia Berhad (TM) and Huawei Technologies (M) Sdn Bhd (Huawei) have recently signed a Memorandum of Understanding (MoU) to collaborate in accelerating 5G commercialisation in Malaysia as the country moves towards a Digital Nation.
The MoU was signed by both companies at TM-Huawei Tech Summit held recently. Ir. Ts Azizi A. Hadi, Chief Network Officer, TM signed the MoU on behalf of TM while Mr. Zac Chow, Vice President Huawei Malaysia, represented Huawei at the signing ceremony.
Commenting on the collaboration, Dato' Noor Kamarul Anuar, Group Chief Executive Officer, TM said, "It is an exciting development for us to collaborate with a global player like Huawei to accelerate the offering of 5G services to Malaysians. As a national telecommunications infrastructure provider of Malaysia's Digital Nation aspirations, 5G technology will complement our existing wired-based offerings, world class connectivity as well as digital infrastructure. It will enable us to deliver more innovative digital solutions to all our customers across various segments. TM via its innovative and comprehensive products and solutions will continue to lay the foundation for Industrial Revolution 4.0 and rolling out 5G nationwide - serving a more digital society and lifestyle, digital businesses and industry verticals, as well as digital Government. This collaboration augurs well for the accelerated deployment of future 5G network, applications and solutions for Malaysian homes, businesses and beyond, in line with our aspiration to power Digital Malaysia."
Meanwhile, Michael Yuan, Chief Executive Officer of Huawei said: "TM and Huawei have been working hand-in-hand for 15 years. We have been working together to connect more people than ever before. We are now at the crossroads of digital transformation. Huawei will fully support TM's aspiration to power Digital Malaysia, and will work together with TM to building a better connected and intelligent Malaysia via 5G."
Under the MoU, both parties intend to explore on collaborating by leveraging on each other's core expertise and capabilities to explore a working mechanism covering spectrum, business case, ecosystem and key technologies. This would include collaborating for a joint study on 5G spectrum and its evolution; possible joint development of new services concepts and business case of selected 5G use cases which include but not limited to Fixed Wireless Access (FWA), Smart Cities and Vehicle-to-Vehicle or Vehicle-to-Infrastructure (V2X); joint study in the areas of 5G Ecosystem Innovation; and explore future cooperation on full-fledged 5G end-to-end system.
Through this collaboration, a joint working group will also be set up to identify areas of copper line services with the aim towards improving customer experience through FWA technology and/or services.
"With this collaboration, we further strengthen our role as a national telecommunications infrastructure provider of Malaysia's Digital Nation aspirations, where TM has established the communications backbone of Malaysia with the widest connectivity and convergence network. As a responsible nation-builder, we will continue to serve as a strategic enabler of the National Fiberisation and Connectivity Plan (NFCP), backed by our solid infrastructure towards empowering Digital Malaysia" Dato' Noor Kamarul Anuar concluded.
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TM Records Stronger 2Q 2023 Financial Performance; Sustaining the Group’s Growth Momentum
KUALA LUMPUR, 25 August 2023 – Telekom Malaysia Berhad (“TM” or “the Group”) recorded a stronger financial performance in the second quarter of the year that ended 30 June 2023, compared to the same period in the previous year. Its operating revenue grew 0.3% to RM3.10 billion, propelled by Unifi’s expansion which saw a substantial increase to 3.11 million fixed broadband subscribers. The growth was also due to TM Global’s solid 10.0% revenue growth driven by higher demand for domestic and international data services. Profit After Tax and Non-Controlling Interest (PATAMI) rose 50.4% from RM378.0 million to RM568.7 million due to lower net finance cost and the recognition of tax credits from unutilised tax losses. TM’s Capital Expenditure (CAPEX) allocation for the first half of 2023 stood at RM942.8 million, which accounts for 15.6% of the overall revenue for the expansion of network infrastructure to enhance nationwide coverage. Meanwhile, Earnings Before Interest and Tax (EBIT) was lower by 10.3% at RM630.0 million from RM702.7 million, due to higher preventive maintenance costs to better serve our customers and higher depreciation from revision of asset useful life. TM declared a higher Interim Dividend of 9.5 sen per share. This is a testament of the Group’s positive financial performance and its ongoing commitment to shareholder value. Commenting on these results, Amar Huzaimi Md Deris, TM’s Group Chief Executive Officer said, “We are pleased with this quarter’s performance, which is marked by overall positive results across our Lines of Business (“LOBs”). These achievements further strengthen TM’s growth momentum in facing a more competitive market.” “In the coming months, TM expects to face a more challenging marketplace but remains confident in our overall positive financial performance. The Group remains steadfast to continue strengthening its core business to be commercially sustainable whilst also continuing to contribute to the nation’s growth. “TM is excited by the huge potential of fixed, mobile and lifestyle convergence in the digital market, as well as digital infrastructure and solutions for MSME, enterprise and government sectors, whilst pursuing to capture opportunities from International partners including hyperscalers. “We also remain committed to continuously invest in expanding our network to enable the nation’s progress towards a Digital Malaysia. TM will continue to collaborate closely with the Government to serve as the nation’s trusted partner to grow Malaysia’s overall connectivity and digital ecosystem, including 5G,” Amar concluded. LINES OF BUSINESS PERFORMANCE Unifi drives growth with enhanced services and market leadership Unifi’s revenue increased 0.5% to RM1.41 billion, driven by growth in fixed broadband subscribers reaching 3.11 million from consumer and Micro Small & Medium Enterprises (“MSME”) segments. Reinforcing its market leadership in fibre broadband services, Unifi unveiled its Ultra Gigabit Broadband Plans with 1Gbps and 2Gbps packages designed to empower digital households and expedite the growth of MSMEs. Unifi also strengthened its position by introducing innovative Uni5G postpaid and prepaid all-in-one 4G and 5G mobile plans, enhancing its fixed-mobile convergence value proposition. Unifi’s lifestyle services arm, Unifi TV, continued its pursuit of enriching user experiences by integrating popular streaming apps such as Netflix into its diverse portfolio. This move bolsters Unifi TV’s value proposition and adds to the variety of content available to users. The availability of a comprehensive convergence proposition encompassing gigabit fixed broadband, innovative 5G mobile packages and lifestyle services is the only offering of its kind in the industry. This is delivered over the best fibre network, superior 4G network coverage and expanding 5G nationwide footprint that offers elevated connectivity experiences at home and on-the-go. As a market leader, Unifi Business launched its Digital Marketing Solution (“DMS”) to encourage the MSME segment develop stronger brand presence and online visibility. As the latest addition to its line-up of connectivity and business solutions, DMS complements and augments Unifi Business’ existing offerings and will propel digital adoption among businesses. Earning further accolades, Unifi Business received the “Best Business Fixed Broadband Service Provider” award from PC.com during the period under review. TM One Drives Innovation with Smart Solutions and Private 5G Advancements TM One experience a decline in revenue by 11.4% to RM732.0 million in 2Q 2023 as a result of price reductions in connectivity services and lower one-off revenue from customer projects. To mitigate this, TM One is driving the rapid development of smart innovative solutions for verticals such as smart cities, healthcare, agriculture and industries. As a trusted digital partner for large enterprises and government, TM One is also leading Private 5G propositions and solutions across diverse industries spanning across oil & gas, transportation hubs and manufacturing to drive the country’s advancement. As the largest local cloud provider, TM Cloud Alpha remains the preferred local sovereign hyper-scaled cloud for data residency and locality in Malaysia. It has also reinforced its role in shaping Malaysia’s modern urban landscapes by being the strategic partner for smart city low-carbon initiatives with local councils. Along with its growing local and global partnerships, it has been appointed to implement and support various digital transformation programmes for its customers. In recognition of its industry excellence across a suite of end-to-end next generation business solutions, TM One received the accolade for "Best Enterprise Telco" from PC.com. TM Global on track to make Malaysia the preferred digital hub for ASEAN TM Global recorded a 10.0% solid revenue growth from RM739.9 million to RM813.6 million, contributed by higher demand for both domestic and international data services. TM Global remains steadfast in solidifying its stature as Malaysia’s preferred network infrastructure provider, catalysing digital industry and 4G/5G ecosystem while simultaneously positioning the country to become a digital hub for ASEAN. TM Global continues to deploy its 4G/5G fibre backhaul rollout and drive greater demand for High Speed Broadband Access (HSBA) ports, reinforcing its commitment to support the Government’s aspirations for digital inclusivity in the country. Beyond borders, TM Global has reinforced its position by enriching the platform play services via strategic collaborations with partners on A2P SMS Gateway in Philippines and Content Delivery Network (CDN) Last Mile Delivery in Thailand. Additionally, TM Global continued to cater to mega bandwidth requirements with dynamic and customised solutions for hyper-scalers as well as global service providers, cementing its significance on the international stage.
Yayasan TM in collaboration with CENDANA transforms Muzium Telekom into engaging public digital arts space as part of art in the city's inaugural KLWKND
Through the marriage of technology and arts, Yayasan TM (YTM) continues its ongoing mission to preserve and celebrate the nation's arts, culture and heritage by transforming Muzium Telekom into an engaging public digital arts space, thanks to a ground-breaking collaboration with the Cultural Economy Development Agency (CENDANA). The collaboration is in support of the agency's Art In The City Programme, via its inaugural KLWKND event. KLWKND is a series of exciting events happening from 25 to 28 November 2021 created to make arts and culture accessible to all walks of life. KLWKND is set to transform downtown KL into a vibrant, truly immersive hub for creativity, arts and culture with various activities planned, all throughout the four (4) day programme including dance, music, opera, fashion, architecture, food, visual arts, design, creative products, traditional crafts, literature, history and more. In amongst the activities, YTM is honoured to be part of KLWKND placing Muzium Telekom as the centrepiece where art meets technology. The 93-year old heritage building will be transformed as SITULAH, a public digital arts showcase. Since 1994, the museum has been showcasing the history and evolution of telecommunications in Malaysia. Befitting the times, YTM aims to reinvigorate this beautiful historic building as an engaging hub that connect the dots across the many facets within the TM Group, showcasing talents from Multimedia University (MMU) students, alumni and faculty in digital, creative and cinematic arts as well as TM's heritage and innovation in telecommunications. True to its collaborative spirit, YTM is working with CENDANA together with Joe Sidek Productions and other esteemed figures in the arts community including gifted visual and performing artists; whilst supporting local Food & Beverage businesses during the festival period and beyond. Muzium Telekom as SITULAH at KLWKND carries the exhibition theme of Traverse – Motions Through Time, a showcase of art and technology traversing without borders across time, mediums and cultures, in a vibrant interdependent ecosystem. As the visitors move through the museum, the artworks will guide them through an exploration into the past, present and future. Addressing the transformation of telecommunication institutions (TM Group, Muzium Telekom and MMU) in the age of digital evolution, contained within four (4) chapters: ENTER, INTER(IN)VENTION, RETROSPECT, and EXPERIENCE. 'Traverse' asks the visitors - how do these historical shifts in the mediation of our perception reflect our beliefs in the function of these institutes in our media society. At 'Traverse – Motions Through Time' while the artists are embracing the new form of art-making, expressing their ideas in a novel and ingenious ways, YTM take the opportunity to inform the public of the emerging creative practices by encouraging public participation, reflection and immersive engagement with the new content produced by MMU students, faculty and alumni. Besides digital and creative arts, TM R&D and TM ONE also showcase their latest technology and innovations. Today, the exhibition hosted a VVIP walkabout, graced by YB Datuk Zahidi Zainul Abidin, Deputy Minister of Communications and Multimedia, accompanied by Dato' Ir. Dr. Abdul Rahim Haji Daud, YTM Board of Trustees Member; Izlyn Ramli, Director of YTM; Dr. Sharlene Thiagarajah, Chief Executive Officer of TM Research & Development (TM R&D); Ainol Shaharina Sahar, Chief Executive Officer of Menara KL; Nor Azmi Mat Said, Chairman of MyCreative Ventures; Junady Nawawi, Group Chief Executive Officer of MyCreative Ventures; Izan Satrina Mohd Sallehuddin, Chief Executive Officer of CENDANA; and Joe Sidek, Director of KLWKND Festival. Holding on to the noble principle that no one gets left behind in this digital age, YTM is exhibiting the extraordinary visual talents of gifted artists in Malaysia for a charity sale during the event. Also taking part are visual artists from Persatuan Pelukis Negeri Perak who will be showcasing the Gutta Percha Trail Exhibition, the history of how a tree native to Malaysia played a crucial part in making the global submarine and telegraph network possible. With the exciting emergence of vast markets for non-fungible tokens (NFTs), YTM is also collaborating with DETIK, a unique Malaysian NFT project team who is organising the NFT-JAM Challenge where digital artists will meet up in the DETIK created Newsantara metaverse. This challenge aims to increase digital literacy reach so that creative communities can participate in the digital economy and earn potential income from their creative arts. This initiative will have presence in the Traverse exhibition and also feature some of the artwork displayed physically and digitally at Muzium Telekom. Commenting on the collaboration, Izlyn said, "As a purpose driven social impact foundation, YTM is committed to the Group's aspiration of enabling a Digital Malaysia via our three pillars of Education, Community and Nation-Building as well as Tourism, Culture and Heritage. The third pillar is dedicated to the sustainable development of Malaysian arts, culture and creative ventures. It is a necessary part for the preservation and celebration of our nation's heritage but also a key foundation to building our future. Creativity and innovation are not just confined to a certain sector; they are applicable across all aspects as well as being a key life skills. This must be nurtured and supported by all stakeholders for the betterment of society." "Malaysia has a wealth of talent, creativity and innovation but it needs that due attention and support to grow further and make an even greater mark in the world. How corporates can support the overall ecosystem should be considered from a strategic view – how they can enhance the scene with the core competencies they have so that the local arts industry creates greater impact and sustainability. YTM's role is in connecting the dots between the youth, talent and creativity to skills development, digital opportunities and collaborative partners; focusing on expanding traditional content and goods to digital platforms and solutions," she added. Meanwhile, as the main organiser, Izan Satrina said, "KLWKND is an integral part of Art In The City key to reach out, restart, revive and rebuild the economy for the arts and culture sector. To successfully implement such efforts, collaboration at all levels amongst the private and public sectors is needed to ensure involvement and ownership of the programme. Therefore, we are proud to partner with YTM and Joe Sidek Productions to build a greater impact for the sector and wrap up the year with a bang. Part of the arts includes us reflecting our history. The exhibition 'Traverse – Motions Through Time' complements this journey." YTM and its partners invite all to come and experience this exciting and immersive digital arts and innovations exhibition, Traverse – Motions Through Time from 25 – 28 November 2021 (10.00 am – 10.00 pm) as part of CENDANA's Art in The City inaugural KLWKND programme. There will also be cool prizes to be won from a special gamification competition feature of the exhibition journey!
TM turns in solid 1Q2021 performance; strong start to transformation programme
The Group posted revenue of RM2.81 billion, 9.9% higher from RM2.56 billion in 1Q2020. A Solid 1Q2021 Performance Telekom Malaysia Berhad (TM) today reported its financial results for the first quarter ended 31 March 2021. The Group's revenue increased by 9.9% to RM2.81 billion compared to RM2.56 billion in the same quarter last year with an increase in revenue across all business lines – unifi, TM ONE and TM WHOLESALE. Ongoing cost improvement initiatives continued to show results with total operating cost ratios (% cost to revenue) improving from 88.1% last year to 79.7%, supporting both revenue growth whilst optimising cost efficiency across direct costs, manpower, other operating costs and depreciation and amortisation. Group EBIT for 1Q2021 rose by 80.8% YoY from RM326.1 million in 1Q2020 to RM589.7 million, on the back of higher revenue and better operating costs efficiency. This subsequently led to a strong 113.4% YoY growth in Group PATAMI from RM152.5 million last year to RM325.5 million. In 1Q2021, the Company invested 8.8% of revenue in capex amounting to RM247.0 million as it continued to modernise its network and technology platforms towards delivering current and future solutions for customers. Of the amount invested, 69% was for network access including JENDELA (fibre broadband expansion), 12% for core network, and the balance 19% for support systems. TM expects to meet the 2021 market guidance announced in February with revenue growth to be flat or single digit growth, EBIT to be more than RM1.6 billion and CAPEX guidance to be between 14% to 18% of revenue. 1Q2021 Business Highlights: A Strong Start to the New TM Transformation Programme The 'New TM' Transformation Programme (2021-2023), anchored on 40+ Value Programmes focusing on customer experience, revenue, cost efficiency and a future proof organisation, has seen a strong start with quarterly growth across all lines of business and improved operations. unifi maintains its strong momentum and convergence leadership with 11.9% YoY growth in fixed broadband customers to 2.44 million, with the highest ever quarterly fixed broadband customers net additions of 110k, driven by growth of unifi customer base. Whilst the MCO since 2020 has increased demand for fixed broadband, unifi has successfully converted this demand with its compelling unifi convergence proposition under the #unifiyourworld campaign, providing the best customer value for broadband, mobile and content via unifi Plus Box. This growth was also supported by the higher number of ports deployed and wider fiber network roll-out under the JENDELA programme, which TM surpassed its 1Q targets achieving 141% of its commitment. TM is also expanding the pool of network contractors to increase the capacity of its fiber expansion programme in the coming quarters. unifi also focused on continuously improving customer experience and accelerated its Streamyx migration programme in Q1 2021 to enable more customers enjoy higher speed broadband. WiFi optimisation is also an important part of getting the best internet experience, hence unifi also continues to promote the take up of Mesh WiFi to its new and existing customers. Meanwhile, its IT systems are also undergoing enhancements to provide better customer experience and cost optimisation via simplification and consolidation of platforms. Notably, unifi rolled out a new order management system that reduces order processing time by more than 60%, to improve customer experience across its sales touchpoints. TM ONE continues to enable the digital transformation journey of enterprise and public sector customers with a comprehensive suite of connectivity, data centre, Cloud, cybersecurity and smart solutions. After cautious spending in 2020, customers are now accelerating their digitalisation, and this has translated into new sales and contract renewals to provide comprehensive digital solutions, especially in key verticals such as oil and gas, the banking and financial services industry (BFSI) as well as from higher broadcast, ICT and customer projects. There is also greater traction seen for Cloud services from the Enterprise segment; whilst discussions are ongoing to support public sector data migration, as the Government's sole local Cloud Service Provider (CSP) under the MyDIGITAL blueprint. TM WHOLESALE is the preferred network infrastructure provider supporting the technology industry and is positioning Malaysia as a digital hub with strong demand from domestic and international telco and technology operators; including hyperscalers. On the home front, TM as the leading infrastructure partner for High Speed Broadband wholesale services, leveraged its superior network nationwide to support the industry's broadband growth. It is also the primary mobile backhaul infrastructure provider for the industry, which saw growth in coverage and capacity through dynamic offerings of these services. TM also recorded growth in terms of its Wholesale Data Services. Towards establishing Malaysia as an ASEAN digital hub, TM strengthened its partnership ecosystem with international carriers and hyperscalers registering higher revenue for International Data Services as compared to last year. TM expanded its portfolio of data centre customers with more major Asian and US hyperscalers co-locating at the nation's only Tier III twin core data centres at Iskandar Puteri (IPDC) and Klang Valley (KVDC). Its wholesale Content Delivery Network (CDN) services also expanded its digital media delivery network ecosystem with more new customers in 1Q2021. TM remains committed to sustainable growth, with continued emphasis on Environmental, Social and Governance (ESG), maintaining its strong track record as one of the 75 Bursa companies on the FTSE4Good Bursa Malaysia Index, with the full rating of 4/4. Environment: TM complies with the Environmental Quality Act 1974, and has reduced its annual carbon emissions by 13%; integrating sustainable practices in all areas of operations. Social: TM ensures the safety and health of customers and Warga TM with special working arrangements implemented and enhanced Standard Operating Procedures (SOPs) towards business and customer service continuity. TM also supports the nation and communities in need through connectivity initiatives such as Jaringan Prihatin, CERDIK, MYBAIKHATI and other humanitarian aid. Governance: Committed to uncompromising integrity, TM continuously assesses the Group's corruption risk and ensures its corruption mitigation practices are independently certified. Imri Mokhtar, Managing Director & Group Chief Executive Officer commented: "We began 2021 with a positive momentum and a strong start to our 'New TM' 2021-2023 Transformation Programme. We are pleased to report a solid year-on-year performance despite these unprecedented times. We delivered good growth with our revenue up 9.9% YoY to RM2.81 billion, contributed by strong demand from our unifi, TM ONE and TM WHOLESALE customers. Coupled with our continuous cost efficiency initiatives, EBIT significantly improved 80.8% YoY to RM589.7 million and PATAMI doubled to RM325.5 million as compared to the first quarter of 2020. Under the 40+ Value Programmes, TM is reshaping our workforce into a stronger execution engine, embracing a more agile work culture with future-ready skills; focused on growing with our customers towards a more digital society, businesses, public sector services and technology industry. TM reiterates our leading role in accelerating Digital Malaysia through digital connectivity, digital infrastructure and a digital workforce. As an essential enabler, we are ready to play a leading role in the execution of both, the JENDELA implementation plan and the realisation of the Malaysia Digital Economy Blueprint (MyDIGITAL); leveraging on our comprehensive connectivity, digital infrastructure and innovative solutions. We are also committed towards sustainable growth, with increased emphasis on ESG by our Board and management. We remain focused on our ESG sustainability journey. I am pleased to update that we maintained our track record as one of the 75 Bursa companies on the FTSE4Good Bursa Malaysia Index, with a full rating of 4/4. With this encouraging set of overall results, we are on track to meet our 2021 market guidance and look forward to delivering greater customer experience and shareholder value with our New TM Transformation Programme."