14 Dec 2022
Consolidation of TM’s business in Malaysia to strengthen fixed-mobile convergence leadership and improve operational efficiency
Telekom Malaysia Berhad ("TM" or "the Group") today announced an internal reorganisation which involves the transfer of its business in Malaysia to a single operating entity named TM Technology Services Sdn Bhd ("TM Tech"). The internal reorganisation is anticipated to complete by 31 December 2023.
The reorganisation – which includes Unifi, TM One and TM Wholesale, among others – marks the next phase of the Group's transformation to be the enabler of a digital Malaysia, and to further improve its operational efficiencies, streamline processes and simplify customer touchpoints to provide a more seamless customer experience.
Incorporating its diverse businesses under TM Tech will also reinforce TM's Fixed-Mobile Convergence leadership, offering integrated fixed broadband, mobile services, data services, digital content and innovative solutions to communities, businesses and the Government.
Group CEO, Imri Mokhtar said, "As digital lifestyles, increasing competition and stakeholder expectations reshape the industry, consolidating these businesses into one operating entity will allow us to serve our diverse customer segments better and deliver their needs more quickly.
"Consolidating our suite of connectivity and digital offerings will also enable us to easily tap into the right combination of solutions to meet the unique needs of individual lifestyles and businesses."
"Furthermore, this reorganisation aligns us to industry best practices and will improve TM's competitive edge among Malaysian and international Telcos and digital players, as we continue to pursue our aspiration of becoming a leading human-centred TechCo," he added.
Under TM Tech, consumers will continue to enjoy the fastest and widest all-in-one connectivity and digital content. Enterprises and the public sector will also benefit from TM's digital and smart solutions, including cloud and data centres, cybersecurity and smart industry offerings. The operating entity will also continue to champion TM's nation-building efforts in expanding and modernising the country's fibre network, data centres and submarine cable systems.
TM Tech will be led by TM's existing senior management team and will bring together its diverse talents under a single company, encouraging greater agility and cross-functional collaboration to improve service quality.
Imri explained, "Our Warga TM will remain the execution engine for TM and the country's digital transformation. While our workforce will be realigned to this single operating entity, employee functions, entitlements and benefits will remain unchanged."
Similarly, all of TM's partnerships, vendor and service agreements will remain in effect.
Telekom Malaysia Berhad will now serve as an investment holding company for this operating entity, with all other subsidiaries within the Group to remain status quo.
"Beyond TM's own growth, this reorganisation strengthens our role in advancing the country's digital transformation and to serve our customers in a more cohesive manner. While it marks a new milestone in our continuous transformation, we remain anchored to our purpose of enabling digital inclusion, opportunities and progress for all," Imri concluded.
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TM ONE AND KPJ HEALTHCARE COLLABORATE TO DRIVE SECURE SD-WAN DIGITAL CONNECTIVITY TRANSFORMATION FOR KPJ HOSPITALS NATIONWIDE
KUALA LUMPUR, 4 DECEMBER 2024 – TM One, TM’s enterprise and government sector solutions arm, and KPJ Healthcare, Malaysia’s leading private healthcare provider, have forged a strategic collaboration to drive digital connectivity transformation across KPJ’s healthcare facilities nationwide. The partnership will focus on enhancing KPJNET through advanced Software-Defined Wide Area Network (SD-WAN) Internet Services, bolstering network performance, scalability and security. The agreement was formalised between Shahril Mizani Ariffin, KPJ Healthcare’s Chief Digital Officer, and Mohamed Faisal Naina, TM One’s Vice President for Government Business. The exchange ceremony was also witnessed by Michael Leddin, KPJ Healthcare’s Chief Strategy Officer, and Shazurawati Abd Karim, TM One’s Executive Vice President. Shazurawati said, "TM One’s partnership with KPJ Healthcare reflects our commitment to enabling better healthcare services through digitalisation. By providing high-performance SD-WAN connectivity, we are supporting KPJ to deliver better patient outcomes and optimise operational efficiency. This will lay the foundation for a smarter, more connected healthcare ecosystem not only within KPJ but throughout Malaysia, for a greater benefit to our nation in the future.” Chin Keat Chyuan, President and Managing Director of KPJ Healthcare, added, “Our partnership with TM One underscores KPJ's commitment to staying at the forefront of technological advancements and to stay competitive in today’s fast-evolving digital healthcare landscape. With the adoption of SD-WAN, we will significantly enhance our infrastructure, providing better service to our customers and empowering our teams with secure and efficient connectivity.” This partnership aligns with KPJ’s core C.A.R.E shared values (Compassion, Accountability, Respect, Excellence), directly enhancing its ability to deliver high-quality, patient-centred care through a secure and reliable digital infrastructure. Secure SD-WAN services will enable KPJ to adopt other innovative solutions such as telemedicine, digital health platforms and AI-driven diagnostics. By modernising its ICT infrastructure, KPJ will improve operational efficiency, enhance patient care and create a more connected healthcare ecosystem. This collaboration reflects TM and TM One’s commitment to enabling Malaysia’s digital transformation and lead industry growth through digitalisation and sustainability, aligning with its Digital Powerhouse 2030 aspirations.
Nurturing future digital leaders through YTM Future Skills Champion Schools
Enhances its adopted schools programme to be more holistic by embedding digital technology and leadership skills TM, through Yayasan TM (YTM), recognises the need to equip the next generation with the digital and technology skills required for Industrial Revolution 4.0 (IR4.0). In view of this, in 2014, YTM began its Science, Technology, Engineering, and Mathematics (STEM) oriented programmes, such as robotics, 3D modelling, coding, and big data analytics, to promote those subjects amongst students and education communities at schools nationwide. In 2020, the modules were conslidated into TM Future Skills (TMFS) programme, with the aim of making it more comprehensive and beneficial to the intended participants. The programme was tailored to the syllabus outlined by the Ministry of Education (MOE) and covered the nine (9) pillars of the IR4.0. It has been receiving positive feedback from the teachers and students involved and more schools have requested to be part of the programme. Supporting MOE’s aspiration for digital education transformation, YTM continues to spread the positive impact of TMFS in a more structured approach. Towards this end, the foundation has embarked on TM Future Skills Champion School (TMFS School) initiative, as a continuation of the TM School Adoption Programme with enhanced contents. TMFS Schools foster future digital skills by embracing digital technology in its classroom activities where leadership, design thinking and cognitive abilities were emphasised to prepare the students for future employment. SMK Gunung Semanggol (SMKGS) in Perak, with more than 90% of its students from B40 families, was selected as the first TMFS School, aligned with YTM’s aspiration to assist B40 students in rural areas. To further facilitate the initiative, YTM is establishing TMFS Digital Hub at TMFS Schools where the schools will be equipped with a PocketLab, robotics set, 3D printer, smart TV, desktop, and digital learning content to gain more interest from its students as well as the neighbouring schools. "SMK Gunung Semanggol was identified based on its active involvement in various STEM initiatives, including previous TMFS programmes. The school also has passionate and dedicated teachers, where they adopt integrated and innovative approach for more in-depth understanding of the modules among the students. With such exposure and capabilities, we are confident that SMK Gunung Semanggol is able to play the role as a hub to spread the digital technology knowledge to more students and teachers including at the five (5) neighbouring schools, and approximately over 20 secondary schools in the Kerian district," said Izlyn Ramli, Director of YTM, during the launching ceremony of TMFS School in November 2022. Throughout this three-year programme, YTM, together with its strategic partner, Creative Minds, will work with Multimedia University (MMU), Yayasan Universiti Multimedia (YUM), TM Perak, and other YTM's partners to design and deliver engaging programmes providing the tools and support for students in rural schools to flourish. "We are also happy to see that SMK Gunung Semanggol promotes the development of other skills, such as urban farming and entrepreneurship, to empower the local communities sustainably. So as we continue to identify more potential schools in more states of Malaysia, we hope this programme will unearth more talented students towards building a competitive and sustainable community in the future," she added. Salmah Iman, the Principal of SMK Gunung Semanggol, expressed her enthusiasm, "We feel honoured and privileged to be chosen as the first TMFS School in the Northern Zone and Malaysia. We are excited and look forward to share the positive impact of this programme with the nearby schools. As we are committed to ensuring that this programme achieves its goals, we are also confident that YTM's support and assistance will help these students be prepared for future employment and enhance their standard of living." At the event, Bakri Arsad, Chief Assistant Director of Mathematics and Science, Learning Sector, Perak State Education Department, said, "We welcome such initiatives through collaboration with the private sector, especially for rural schools that need exposure to digital technology. These programmes will inspire students to explore their potential beyond academics and increase the number of students choosing STEM-related fields." During the launch, guests had the opportunity to visit the Pusat Sumber Sekolah Pendeta Za'aba and experience content and materials created by the students based on specific themes including unique handicrafts and martial arts performances. Guests toured the school's urban farm, where they sampled delicious cuisine prepared by students from the special education class using produce from the farm. SMK Gunung Semanggol provided a wonderful ambience of positive vibes that attract students' engagement and boosted their creativity. To date, STEM-related programmes by YTM, including TMFS, have benefited over 15,000 students and teachers from over 500 schools across the country. With the support and assistance of various interested partners, we hope this initiative will spark students' interest in pursuing their tertiary studies in technology and digital fields and equip the young generation with future-proof skills relevant to the future workforce.
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%
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