26 May 2022
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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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.”
K-KOMM Deputy Minister officiates Yayasan TM’s effort for most number of Gutta Percha planted within 24 hours
Recognised by the Malaysia Book of Records, campaign sees planting of 5,017 trees across 23 locations with 18 collaborative partners Yayasan TM (YTM), the foundation arm of Telekom Malaysia Berhad (TM), today launched The Largest Gutta Percha Tree-Planting Event in 24 hours, a Malaysia Book of Records certified campaign in conjunction with World Telecommunication and Information Society Day 2022. The project, inspired by the “Greening Malaysia; Our Trees, Our Life” campaign under the Ministry of Energy and Natural Resources that aims to preserve the country’s biological diversity, was co-organised with Yayasan Sukarelawan Siswa (YSS), and saw 1,000 student volunteers and TM’s own Reaching Out Volunteers (TM ROVers) working together to plant 5,017 Gutta Percha trees at 23 locations simultaneously. Launched by YB Datuk Zahidi Zainul Abidin, Deputy Minister of Communications and Multimedia, together with Dato’ Haji Rosli Isa, Secretary General, Ministry of Energy and Natural Resources, the campaign specifically chose the Gutta Percha tree species for its significant heritage status in Malaysia. Native to the country and known as Nyatoh Taban Merah to locals, the species was instrumental for the early beginnings of the global submarine telegraph network. In 1851, the latex from the Gutta Percha tree was discovered to be the best insulating material and led to the invention of the first submarine cable in the world. While it was replaced with polyethylene by the 1950s, this humble tree essentially spearheaded modern telecommunications capabilities globally. Hosting the event, Tan Sri Dato’ Seri Abd. Ghafar Mahmud, Board of Trustee Member of YTM said, “This symbolic Gutta Percha tree-planting programme is a collaborative effort to protect our natural heritage and to honour the unique role it has played in connecting communities throughout the world. From its humble origins in our own forests, this species has transformed our communications capabilities, and it is now our duty to protect it for future generations.” Speaking at the launch, YB Datuk Zahidi said, “The World Telecommunication and Information Society Day this year is celebrated by industry players, agencies and corporate partners in their own unique ways. As we move with the fast pace of the digital world, we need to balance it with green conservation efforts to sustain our environment. I am thrilled and excited with today’s event that sees the preservation of Gutta Percha, a native and very important species particularly to telecommunications. Congratulations to YTM and YSS for this unique collaboration!” A total of 18 partners from local councils, institutions and universities also collaborated on this project, providing designated areas for Gutta Percha education, research and development, as well as participating in the tree-planting initiative. Besides YSS, these partners include: Forest Research Institute Malaysia (FRIM), Jabatan Perhutanan Semenanjung Malaysia, Perbadanan Putrajaya, Majlis Perbandaran Sepang, Dewan Bandaraya Kuala Lumpur, Multimedia University (MMU), International Islamic University Malaysia (IIUM), Universiti Sains Islam Malaysia (USIM), University of Malaya (UM), Universiti Putra Malaysia (UPM), Universiti Kebangsaan Malaysia (UKM), Universiti Teknologi MARA (UITM), Universiti Teknologi Petronas (UTP) and Universiti Malaysia Perlis (UniMAP) as well as Mr DIY, Hara Makers and unifi. In addition to tree-planting, YTM is also supporting Buy for Impact’s social enterprise, Hara Makers, through their Reimagine Plastic environmental initiatives. The foundation is further helping economically-disadvantaged communities through an income-generating project to create upcycled volunteers’ hats for the Gutta Percha Tree-Planting event. Extending the impact of the project beyond the launch event, YTM, in partnership with unifi, is running an Adopt-A-Tree campaign via unifi Rewards points redemptions. unifi customers will have the opportunity to adopt a Gutta Percha tree by donating their points towards this effort via the myunifi application or portal. Through their support, the adopted trees will be planted within the 23 unifi Green Zones and customers will receive a digital certificate from YTM for their contribution. These initiatives tie in with TM Group’s Environmental, Societal and Governance (ESG) sustainability commitments, connecting the three components with Malaysia’s national heritage conservation as well as education efforts.
TM R&D collaborates with Maldives’ leading digital services provider, Dhiraagu to bring ewar to businesses in Maldives
EWAR, A.I. driven contactless temperature screening solution made in Malaysia has now entered the international market Telekom Malaysia Berhad (TM), through its innovation arm, TM Research & Development (TM R&D), is expanding the delivery of its Artificial Intelligence (A.I.) driven contactless temperature screening solution – Early Warning, Alert & Response or "EWAR" – to Maldives. For the expansion, TM R&D is working alongside Dhiraagu, the leading and largest provider of telecommunications and digital services in Maldives, to assist local businesses in resuming full operations while maintaining a safe environment by installing EWAR at their premises. This initiative is set to provide businesses in Maldives and their stakeholders with the confidence for business continuity through the provisioning of the complete solution. Commenting on the collaboration, Dr. Sharlene Thiagarajah, Chief Executive Officer, TM R&D said, "We are excited to collaborate with Dhiraagu to introduce EWAR, a reliable and accurate contactless thermal screening solution to businesses in Maldives. As we are facing an unprecedented period, health procedures to curb the Covid-19 pandemic are universal which is why we believe EWAR serves two main purposes – to provide early warning alerts of high temperature efficiently and to minimise human contacts. We believe other countries can also reap the benefits of EWAR to better face this pandemic. We see this as our first step into showcasing how innovative digital solutions developed by Malaysian talents such as EWAR can assist in the fight against COVID-19 at the global front." "As we are navigating through a new normal, we will continue to introduce smart digital solutions that focus on safety and to help fulfil the digital requirements of businesses. This is befitting of our aim to serve a more digital lifestyle and in line with our support for TM's unique role of enabling a more Digital Malaysia," she added. Harnessing their expertise in digital platforms and digital solutions, TM R&D introduced two (2) main products under EWAR, namely EWAR Crowds and EWAR Compact in April. EWAR Crowds is designed to conduct a rapid body temperature screening of approximately 10-15 individuals per second simultaneously at high traffic areas. The solution is non-intrusive and can easily be deployed in locations with mass traffic flow such as offices, shopping complexes, transportation hubs, universities, schools, tourist attractions, airports, immigration centres, and hospitals. EWAR Compact on the other hand is more suitable for one-on-one contactless thermal screening. This helps to eliminate the need for hand-held temperature taking devices which can subsequently minimise long queues and increase efficiency. Both EWAR products also come with cloud-based software and real-time monitoring app which makes this innovative solution unique. If any visitor entering the premises records a higher temperature, an alert will be triggered and a notification will be sent to the mobile device of the designated person in charge. The system also allows storing of individual temperature reports over a cloud system where it can be accessed remotely for tracking or analysis. "As we all are collectively working towards the same goal, health, and safety of our employees, customers, and communities are given the utmost priority. The EWAR solution has been developed with the highest accuracy for thermal screening. We are delighted to be collaborating with TM R&D to bring this complete solution to local businesses towards ensuring business continuity," said Mahmoud Dasser, Chief Marketing Officer of Dhiraagu. Currently, EWAR has been deployed at more than 150 sites across several industry verticals to provide accurate, hassle-free screening of employees and visitors. The sites include the quarantine and treatment centre for COVID-19 cases at Malaysia Agro Exposition Park (MAEPS) in Serdang, large and mid-size office lobbies, 12 schools, hotels, Kuala Lumpur City Hall (DBKL) payment counters, various sales galleries, Gamuda Land construction sites, just to name a few. TM R&D has been growing from strength to strength since 2016, winning seven (7) globally recognised awards over the last two (2) years. With more than 2,800 IPRs and 1,400 digital assets generated to-date, TM R&D's innovations, all developed in-house cut across multiple verticals such as Telco, Retail, Logistics, Agriculture, Healthcare and Education with safety and productivity as the top priority. As the organisation continues to expand beyond connectivity and into new value-added digital and smarter platforms, its role in TM has become more prominent and exciting. For more information about TM R&D and its products and services, please log on to www.tmrnd.com.my. Follow us on LinkedIn (TM Research & Development) for more news and updates.
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