07 Sep 2022
TM reinforces commitment for employee welfare & safety; signs new Collective Agreement with NUTE for 2022-2024
Telekom Malaysia Berhad (TM) signed its twelfth (12th) Collective Agreement (CA) last week, on 24 August 2022, with the National Union of Telecommunications Employees (NUTE) for the period of 2022-2024. Consecutively, the CA was also signed between NUTE and TM's subsidiaries, namely Telekom Sales & Services Sdn Bhd, TM Info-Media Sdn Bhd, GITN Sdn Bhd and TM R&D Sdn Bhd.
About 8,000 non-executive employees in Peninsular Malaysia and Labuan were covered by this CA. It includes employment enhancements for various terms and conditions, including salary adjustment and cost of living allowances among others. It is also aimed to enhance and boost employees’ productivity and work performance.
Representing TM Group for the CA signing was Imri Mokhtar, Group Chief Executive Officer and Sarinah Abu Bakar, Chief Human Capital Officer while NUTE was represented by its President, Mohd Jafar Abd Majid, and Mohamad Farid Mohamad Daud, General Secretary of NUTE. The signing ceremony was also witnessed by Tan Sri Mohammed Azlan Hashim, Chairman of TM.
“The new CA demonstrates TM’s unwavering commitment and strong industrial partnership with NUTE towards the well-being of our employees. Our people – Warga TM, is the impetus behind our achievements, they are the engine driving TM’s performance. It is hoped that the harmonious relationship between both parties will fuel the continuous growth of TM, inculcating a high-performance working culture and realise TM’s aspiration to become a Human-Centred Tech Company,” said Imri Mokhtar, TM’s Group Chief Executive Officer.
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TM Inks MOU With ZTE For R&D Innovation Under Latest Strategic Partnership Programme
TM, Malaysia’s leading converged telco and technology company, has today entered into a MoU with ZTE Malaysia Corporation Sdn Bhd (ZTE), a global leader in information and communication technology solutions, to collaborate on a range of research and development innovations under its latest strategic partnership programme. The partnership will leverage TM and ZTE’s joint expertise to drive innovation and digital transformation for customers and industries, focusing on R&D opportunities and commercialisation, product and technology improvement, and the enhancement of TM’s digital talent ecosystem. The collaboration will also serve as an important step towards strengthening the nation’s digital and telco infrastructure, and empower Malaysia’s competitive edge in delivering cutting-edge solutions to the marketplace. Slated to run for a period of three years, the MoU was presided over by YB Fahmi Fadzil, Minister for Communications and Digital; YB Teo Nie Ching, Deputy Minister for Communications and Digital; Tan Sri Mohamad Salim Bin Fateh Din, Chairman; and Dato’ Mohd Ali Hanafiah Mohd Yunus, Chief Operating Officer for the Malaysian Communications and Multimedia Commission respectively. The MOU was signed by TM’s Group Chief Executive Officer, Dato’ Imri Mokhtar and ZTE’s Managing Director, Mr. Steven Ge. Building on TM and ZTE’s ongoing investments and commitment to R&D and innovation, the partnership aims to deliver new products and services, with TM serving as ZTE’s preferred business partner to deploy innovative solutions, go-to-market strategies, commercialisation, and networking across various markets and customer segments in Malaysia and regionally. The companies will also work on network and technology planning and overall digital transformation by bringing together Software as a Service (SaaS), Platform as a Service (PaaS), and Anything as a Service (XaaS) providers to develop customised end-to-end solutions for various industry sectors. Aside from technological developments and aligning with TM’s transformation as a human-centred TechCo, the collaboration will focus on enhancing TM's digital talent ecosystem, covering areas such as talent competency best practices, professional competency framework, technical training and certifications for digital transformation, as well as cross-border knowledge sharing on new technologies. Dato’ Imri Mokhtar, TM’s Group Chief Executive Officer, said: “We are pleased to partner with ZTE once more in providing new innovations that will serve today’s digital customers and industries. Spearheading these efforts will be TM’s R&D arm who will provide hardware testing and design enhancement, consultation on digital platform technologies, as well as integration solutions to ensure our offerings are market-ready. This MOU comes on the heels of another recent joint research in next generation access technology to enhance Malaysia’s high speed internet connectivity. Introducing the first ever 50Gbps bandwidth in Malaysia has prepared us to drive other innovative services such as 5G, Cloud VR, and intelligent manufacturing which will benefit communities, businesses and the Government.” Mr Steven Ge, ZTE’s Managing Director, concluded: “As a global leading provider of information and telco technology solutions, we’re looking forward to collaborating with Malaysia’s leading telco player. We’re confident that our collaboration will bring forth new innovations and solutions to address the growing needs of today’s digital markets. ZTE is also committed to supporting TM's digital transformation and talent ecosystem growth through our global expertise and resources. We believe that this partnership will create a win-win situation for both parties and set a new industry standard for strategic collaborations."
unifi encourages MSMEs to maximise Government Digitalisation Grant and accelerate their digitalisation journey with its suite of digital-first solutions
Government’s announcement to increase digitalisation grant to RM200 million next year is a big step in the right direction unifi is set to accelerate MSMEs in their digitalisation plans with its complete range of digital-first solutions. This comes after the Government’s announcement to raise the Digitalisation Grant for Malaysian micro, small and medium enterprises (MSMEs) to RM200 million next year. The increase is a big step in the right direction and is expected to have a significant impact on the push for digitalisation especially in a period when businesses are looking at technology to fast track their road to recovery and beyond. Along this road to recovery, unifi Business has positioned itself to become the preferred digitalisation enabler for MSMEs with its digital-first solutions while playing its part as a responsible corporate citizen in supporting the Government’s push to digitalise MSMEs. Anand Vijayan, Chief Commercial Officer of Telekom Malaysia Berhad (TM) said MSMEs should fully utilise this opportunity to accelerate their digitalisation journey and unifi Business is here to support them. “The decision to raise the digitalisation grant to RM200 million is a big move in the right direction and we’re ready to support the needs of MSMEs in Malaysia that want to accelerate their digitalisation journey.” “As a government-appointed Technology Service Provider Partner (TSP) under the MSME Digitalisation Grant, we have the complete range of digitalisation solutions for MSMEs in every step of their digitalisation journey,” said Anand during a virtual media briefing session held today. Since unifi launched its bespoke initiative that leverages on the Digitalisation Grant in August this year, the response from MSMEs have been overwhelming, further strengthening the brand’s position as the digital partner of choice among the MSMEs. Currently, unifi serves a significant portion of the nation’s MSME ecosystem with more than 375,000 MSMEs subscribed its solutions nationwide. Under this Grant, MSME entrepreneurs can subscribe to unifi Business Solution packages with savings of up to 50% across 12 months. In addition, unifi is offering prizes worth RM1.5 million to encourage MSME entrepreneurs to start digitising their businesses. Meanwhile, Mohamad Yusman Ammeran, unifi Head of SME Segment who was also present at the session said feedback from MSMEs showed that digitalisation served as a booster that helped these businesses recover and thrive. “The pandemic has transformed the business landscape in Malaysia and digitalisation is the way forward. We see a positive impact in the many businesses that we’ve supported during this very challenging period and I’m happy to see that many not only recover but have thrived thanks to our digitalisation solutions despite the challenges,” said Mohamad Yusman. unifi has a host of solutions to cater to the different needs of individual MSMEs. These include Microsoft 365 which allows businesses to increase productivity with real-time solutions to connect and collaborate anytime, anywhere. This solution also offers access to files in real time across multiple devices while ensuring a high degree of data integrity. For new businesses venturing into the digital marketplace, unifi offers a comprehensive Digital Marketing Solution where they can enhance their online presence with increased visibility especially on social media. Another unifi Business innovation is the cari@unifi Premium Listing site, a solution that allows businesses to reach a wider customer base through online listings and articles on the hugely popular local e-commerce platform, cari@unifi. In addition, unifi also organises complimentary awareness and training programs for MSMEs to increase their digital proficiency. On top of that, unifi has business consultants at 83 MSMEs Corners nationwide to provide advice and guidance to business owners – the only technology company in the country to provide such services. To encourage sign-up for the Digital Grant, unifi is also offering exciting prizes to successful applicants under its “Sign Up & Drive Away” contest. Prizes include nine (9) four-wheel drive (4WD) vehicles during the contest period which will end 31 December 2021. Other interesting prizes include laptops, smartphones and tablets. For more information on unifi Business Solutions and SME Digitalisation grant offerings, please visit www.unifi.com.my/business/smegrant.
TM delivers double digit revenue, EBIT and PATAMI growth in Q2; on track to achieve its 2022 market guidance
2Q2022 Key Highlights (vs 2Q2021) Increased demand for Internet and Data translated to an 11.8% growth in Operating Revenue, at RM3.09 billion compared to RM2.76 billion Manpower and other OPEX cost optimisation contributed 81.3% EBIT growth, recorded at RM702.7 million PATAMI up 73.0% at RM378.0 million from RM218.5 million, as a result of higher operating profit and lower net finance cost Invested 15.7% of revenue in CAPEX or RM484.5 million in fibre expansion, network upgrades and support systems Free Cash Flow increased 36.4% at RM730.5 million, mainly attributed to increase in revenue and cost optimisation initiatives Interim Dividend of 9.0 sen per share declared with Dividend Reinvestment Scheme applicable (DRS) On track to achieve its 2022 market guidance, TM continues to strengthen core businesses while investing in new growth areas Telekom Malaysia Berhad (TM) has sustained its growth trajectory, delivering an excellent set of financial results across all key metrics for the second quarter ended 30 June 2022, offering converged services and solutions and demonstrating its resilience against increasing competition from other telco and technology players. The Group’s operating revenue grew by 11.8% to RM3.09 billion, compared to RM2.76 billion in the same quarter last year (YoY), on a foundation of strong performance across every customer segment and a sharp increase in revenue from all lines of service, particularly Internet and Data. Optimisation efforts enabled TM to record lower manpower and other OPEX costs, which led to higher Earnings Before Interest and Taxation (EBIT), up 81.3% at RM702.7 million compared to RM387.6 million YoY. Profit After Tax and Non-controlling Interest (PATAMI) was up 73.0% at RM378.0 million from RM218.5 million YoY, on the back of accelerated demand for connectivity, services and digital solutions. The Group applied the 33% Cukai Makmur statutory tax rate accordingly for the current quarter. In addition to Group-wide cost optimisation initiatives, the revenue jump helped drive an increase of Free Cash Flow by 36.4% to RM730.5 million YoY, putting TM in a solid position to make future investments and further reduce debt. TM also declared an Interim Dividend of 9.0 sen per share in line with its policy to distribute yearly dividends of 40% - 60% from its PATAMI. The DRS is applicable for this dividend tranche to provide flexibility to shareholders, enabling participation into the Group’s continuous growth momentum. unifi: Maintaining growth momentum As the leading convergence provider in Malaysia, unifi recorded a 10.3% revenue increase from RM1,272.0 million to RM1,402.6 million in the current quarter, driven primarily by continuous growth of fixed broadband subscribers, which recorded a 14.1% increase from the same quarter last year. unifi continues to innovate the home entertainment landscape, rapidly adapting to consumer consumption patterns through more attractive content that can be viewed both at home via high-speed broadband as well as on mobile devices via the playTV@unifi app. Its growing content ranges from Hollywood to Hallyu, offering variety for everyone. unifi's focus also extended to local SME businesses with the month-long #BelanjaDiSME campaign, as well as the SME Digitalisation Grant (SDG), which provides entrepreneurs with up to 50% savings for internet subscriptions and digital solutions. TM Wholesale (TMW): Leading the charge in positioning Malaysia as a digital hub TMW continues its march to be the nation’s preferred network infrastructure provider and to position Malaysia as a digital hub. Revenue for the current quarter increased by 26.4% from RM585.3 million YoY to RM739.9 million, contributed mainly by higher revenue from data and voice services. TMW’s compelling performance is underpinned by escalating domestic data demand and new deals secured on the international front. It recorded the highest installation for High-Speed Broadband (HSBB) Access in June 2022, driven by mobile network operators (MNOs) and content service provider under JENDELA. TMW also delivered more than 4,500 cumulative 4G and 5G backhaul sites in supporting the MyDIGITAL blueprint for enhanced digital inclusivity nationwide. On the international front, TMW has secured new deals with a US-based hyperscaler and a North Asian digital provider. Simultaneously, its collaborative agreement with Globe Telecom will enable its customers to enjoy superior gaming experiences, a strategic move to expand its business beyond its telco offerings. TM One: Stronger performance amidst market challenges The Group’s enterprise and public sector arm, TM One, recorded an increase in revenue of 4.1% YoY to RM854.6 million, with growth from recurring business across the enterprise and government sectors. Global supply chain challenges and delays, however, continued to impact its operations and subsequent delivery of several customer projects. As the sole local provider for the Government’s MyGovCloud initiative, TM through TM One, is the only hyperscale cloud provider to offer data residency, data locality and data sovereignty for the Malaysian Government and its citizens. This eliminates potential risks from international regulations, policy interventions, or risk of Malaysian data housed beyond Malaysia’s borders. Credence: Spearheading TM’s growth into the digital tech space Responding to the fast-growing market demand for the digitalisation of enterprises, Credence was recently launched to drive greater levels of digital capabilities and technology skills for the Group’s corporate customers. Established as a start-up, Credence is TM’s new cloud and digital services company, focusing on becoming a trusted technology partner to accelerate the digital transformation of large enterprises and the public sector. Leveraging TM’s existing technology partners and new ventures, Credence will also accelerate the Group’s transformation in the digital tech space. Commentary and Outlook from Imri Mokhtar, TM Group Chief Executive Officer “At the mid-point of 2022, our financial performance and results demonstrate TM’s ability to manage our businesses effectively despite the headwinds arising from a challenging and competitive business environment. These results are also a powerful testament of our transformation journey, and our commitment to deliver a sustainable and inclusive Digital Malaysia. “unifi will continue its trajectory to provide converged solutions to both residential and SME customers. unifi Business, specifically, will double down on its efforts to provide new propositions to engage SME customers including promotional campaigns and financing options. “TM One remains focused in enabling the digital transformation of the enterprise and public sectors. Complemented by its global partner ecosystem, TM One continues to make inroads on bespoke solutions engineered and supported by its in-house ICT capabilities. “TM Wholesale is on course to provide a comprehensive suite of advanced wholesale communication services and solutions for both domestic and global fronts. TMW is poised to position Malaysia as a digital hub for the ASEAN region. “As part of TM’s commitment to empower businesses on their digital transformational journey, the Group will also address the digital and tech skills gap through Credence. This new digital services subsidiary will deliver a differentiated advantage for enterprise digital solutions, providing greater and faster time-to-value with customised options for enterprises. “Looking ahead, 5G will level the playing field and move the industry away from network-based to service-based competition. TM welcomes the Government’s call for the industry to take up equity stakes in DNB. 5G will open up and expand the opportunities and growth areas for all of TM’s business segments – consumers, SMEs, enterprises, wholesale as well as digital services. We look forward to rolling out 5G-enabled products and solutions and unlocking value to meet customers’ demands. “As Malaysia’s convergence champion, we believe 5G will strengthen our convergence proposition, and our customers will be encouraged to transition to 5G in the near term. “Ultimately, TM’s growth and differentiation, whether in 5G, fixed broadband or digitalisation, will hinge on creating and offering exceptional customer experience, as we continue on our evolution towards becoming a human-centred technology company.”
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