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’s All-In-One Digital Solutions With Geran Digital PMKS Madani To Accelerate MSME Digitalisation
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Solid first half 2021 for TM: revenue up +8.2%, EBIT up +29.9%, dividend declared
First half 2021 Key Highlights (vs first half 2020) Group Revenue grew 8.2% to RM5.57 billion from RM5.15 billion Cost optimisation continues to yield results. Group Reported Earnings Before Interest and Tax (EBIT) increased by 29.9% to RM977.3 million, from RM752.4 million last year Group Reported Profit After Tax and Non-controlling Interests (PATAMI) rose 27.3% to RM544.0 million, compared to RM427.2 million last year Record breaking unifi customer growth; fixed broadband customer base grew 15% to 2.55 million Declares interim dividend of 7.0 sen per share totalling RM264.2 million in line with dividend policy Continues to focus on value creation and ESG for sustainable growth Telekom Malaysia Berhad's (TM) revenue for the first half of 2021 (1H2021) grew strongly by 8.2% to RM5.57 billion, compared to RM5.15 billion in the same period last year. In a statement today, the company said this achievement was driven by growth across all its customer segments – unifi, TM ONE and TM WHOLESALE. On the back of this higher revenue and better cost efficiency, Group EBIT rose by 29.9% to RM977.3 million, from RM752.4 million last year. Subsequently, Group PATAMI grew 27.3% to RM544.0 million, from RM427.2 million in the same period last year. The Company continues to invest in future growth by modernising its network and technology platforms, to deliver the best current and future solutions for its multi-segment customers. CAPEX spending in the first half of the year stood at RM597.0 million or 10.7% of revenue. Of the amount invested, 65% was for network access, 16% for core network, and the balance 19% for support systems. Fibre broadband of choice – highest ever new unifi customers recorded in 2Q2021 unifi recorded several operational milestones with more than 210,000 new customer activations in the second quarter of 2021 (2Q2021). This is the highest number of unifi activations in a quarter in its 11-year history. unifi achieved an important milestone of 2.0 million customers in May 2021. By the end of June, the overall fixed broadband customer base had gone up to 2.55 million, representing a solid 15% growth over the past 12 months since June 2020. This growth was enabled by the higher number of ports added in 2Q2021 and wider fibre network coverage, exceeding the targets committed in the JENDELA plan, achieving 138% of its commitment in 1H2021. unifi also increased its sales and installation capacity to meet strong fibre broadband demand. unifi also saw positive uptake of device bundles with the enhanced unifiYourWorld campaign offering smart lifestyle devices, unlocking the unlimited possibilities to enrich users' digital lifestyle and needs. unifi brought live streaming of the recent Olympic Games Tokyo 2020 on 13 HD channels for free via unifi PlayTV app and unifi Plus Box, to enable Malaysians to support our athletes competing at the games. Customer touchpoints and support remains in operation with stricter SOPs As more Malaysians are working from home, conducting business online, participating in online learning and keeping the family entertained while staying safely at home, TM observed that internet usage went up by 45% since the start of MCO in March 2020. All customer support services remain in operation with stricter SOPs to continuously serve customers. Customer care lines remain open and attended to over 3.6 million customer interactions in 1H2021. TMpoint outlets and key partner stores remain open for service applications and essential transactions while adhering to strict SOPs. TM is also expanding and renovating selected TMpoint outlets with localised flavour, self-serve kiosks and implementing many other improvements to enhance its customers' experience. New service installation and restoration activities remain available for customers with SOPs in place to ensure the safety of both, customers and TM personnel. Notably, TM activated unifi Rovers nationwide to help customers sign up easily. Due to the higher volume of interactions during this pandemic period, customers are encouraged to use self-serve digital channels such as the unifi portal and myunifi app which are available 24/7 for service registration, service diagnostics, account-related enquiries and payment. A more simplified and personalised digital bill was also introduced for bill payment convenience of customers. TM ONE is committed to accelerating MyDIGITAL aspirations with cutting-edge digital infrastructure and solutions TM ONE continues to be the digital enabler and trusted partner for enterprise and public sector customers by providing dependable connectivity and delivering new customer projects in 1H2021. As customers pursue to accelerate their digitalisation adoption, this has translated into new contracts and renewals. Following its appointment as the sole Malaysian Cloud Service Provider (CSP) under the MyDIGITAL blueprint, TM ONE sees growing demand for its Cloud services from enterprises and government agencies. In addition, TM ONE also served international demand to fulfil hyperscaled requirements as the local data centre provider. With its complete suite of cybersecurity solutions under TM ONE CYDEC, TM ONE has formed alliances with strong global and local cybersecurity players to further enhance its ability to detect and eliminate cyber threats for enterprise and public sector customers. This will help pave the way for digital trust and cyber resiliency to help nurture a safer and more robust national cyber ecosystem. TM WHOLESALE strengthens domestically, further builds partnership ecosystem globally Domestically, TM WHOLESALE continues its growth momentum as the preferred infrastructure partner for High Speed Broadband (HSBB) access services. It also achieved further expansion of infrastructure coverage and capacity for Next Generation Backhaul services for several mobile network operators. TM WHOLESALE also secured bandwidth capacity upgrades for major Domestic Wholesale Data solutions and services. Internationally, TM WHOLESALE strengthened its partnership ecosystem with more global telcos and hyperscalers for International Data services. TM WHOLESALE also secured more deals with global telcos and hyperscalers for International Ethernet services. It also expanded its digital media delivery network ecosystem with growth from domestic and international digital content players. Focused on value creation and ESG for sustainable growth TM continues to focus on Environmental, Social and Governance (ESG) principles of sustainable and ethical business practices in serving the nation: Governance: TM is committed to uncompromising integrity. All its suppliers have signed the TM Integrity Pledge and more than 90% of Warga TM have progressively completed the Uncompromising Integrity e-learning module. TM also ensures that its corruption mitigation practices are independently certified - having completed the Anti-Bribery Management System (ABMS) certification and the Organisational Anti-Corruption Plan (OACP). Social: TM aims to deliver social impact by ensuring the wellbeing of its Warga TM and the nation. TM is committed to bridging connectivity through the JENDELA plan. TM remains fully supportive of the Government's recovery plan - "Pelan Pemulihan Negara" - via its connectivity, digital infrastructure and solutions as well as various social contributions. Environment: TM continuously strives to reduce its annual carbon emissions from electricity usage through the retirement of old networks, implementation of an Energy Management System and improvement of energy-saving practices. TM is continuously improving these sustainability efforts while at the same time upholding its commitment to its stakeholders. Imri Mokhtar, Managing Director and Group Chief Executive Officer of TM commenting on the results: "I am pleased to report that we have recorded a solid performance in the first half of the year and we are on track to meet our 2021 targets in line with market guidance. Coming off an exceptional first quarter, we recorded notable improvements in our 1H 2021 revenue and profitability against the same period last year. "This was driven by higher revenue achieved by all of our customer segments – unifi, TM ONE & TM WHOLESALE and better cost efficiency. The current nationwide movement control order (MCO) has certainly influenced our business landscape and customer operations, but we are delighted with the momentum of our value programmes and the commitment of our frontliners. "Our revenue in 1H2021 recorded an increase of 8.2% at RM5.57 billion against RM5.15 billion in the same period last year, driven by revenue growth from all customer segments. Our EBIT has increased by 29.9% from RM752.4 million to RM977.3 million. Malaysia's economic growth outlook for 2021 continues to be challenging with the prolonged movement restrictions brought about by Covid-19. Notwithstanding the headwinds, our role remains. We will continue to serve the nation by meeting the demand for internet and data, both at the retail and wholesale fronts. This is evident through the acceleration of the number of ports deployed and the fibre network expansion under our Jalinan Digital Negara (JENDELA) commitment, which is well ahead of schedule. We remain steadfast and will leverage our comprehensive connectivity, digital infrastructure and other smart solutions to support the nation's digital aspirations under the MyDIGITAL blueprint.
TM and Cisco announce strategic partnership to supercharge Malaysia’s digital agenda
This collaboration is part of Cisco’s Country Digital Acceleration programme and aligns with MYDIGITAL to accelerate Malaysia towards becoming a regional digital leader Malaysia’s national connectivity and digital infrastructure provider, Telekom Malaysia Berhad (TM) and worldwide leader in technology, Cisco International Limited, today announced a new strategic partnership as part of Cisco’s Country Digital Acceleration (CDA) programme to supercharge Malaysia’s ambitions to become a technology-driven nation and regional digital leader. Both parties signed two collaboration agreements to pave the way for key projects focused on helping the country develop its 5G innovation platform as well as accelerate technology adoption and transformation for Malaysia’s small and medium-sized enterprises (SMEs). These initiatives were introduced at a signing ceremony presided over by YB Tan Sri Datuk Seri Panglima TPr Annuar Haji Musa, Minister of Communications and Multimedia; and attended by YBhg. Dato’ Sri Haji Mohammad Mentek, Chief Secretary, Ministry of Communications and Multimedia Malaysia; YBhg. Tan Sri Mohamad Salim Fateh Din, Interim President, the Malaysian Communications and Multimedia Commission; Imri Mokhtar, Group Chief Executive Officer, TM; Dave West, President, Cisco Asia Pacific, Japan, and Greater China (APJC); and Hana Raja, Managing Director, Cisco Malaysia. Cisco’s CDA programme is a strategic partnership with governments worldwide to accelerate their national digitalisation agendas and create new value for the country, its businesses, and citizens. The programme taps on the power of private and public partnerships across a variety of sectors, including national infrastructure, education, and smart businesses and communities, to bring digital solutions to national challenges. Digitalisation initiatives that are rolled out are made into replicable solutions to cross-pollinate and contribute to Cisco’s wider CDA ecosystem which is currently present across 44 countries globally. The CDA programme in Malaysia was unveiled as a collaboration framework between Cisco and MyDigital Corporation in May 2022. It is aligned with MyDIGITAL, the government’s Digital Economy Blueprint, aimed at accelerating the growth of Malaysia’s digital economy, with a focus on driving digital transformation in the public sector, building digital infrastructure, and cultivating agile and competent digital talent. TM’s partnership with Cisco focuses on three key pillars: digital transformation in the public sector, specifically education – which will be launched at a later date; digital transformation for service providers, focusing on 5G innovation, and digital transformation for SMEs. The two (2) collaboration agreements signed today were: • 5GaaS Innovation Platform Cisco and TM will build a 5G-as-a-service Centre of Excellence to springboard 5G adoption and develop proof of concepts for enterprises and vertical industries. Supported by Cisco’s full stack of Private 5G Core technologies complete with services and support, the innovation platform will demonstrate 5G enterprise use cases realized on the reference architecture to allow businesses to visualize and implement 5G frameworks and solutions that address unique business challenges. • Accelerating Digital Transformation of SMEs Cisco and TM will drive a joint digital solution seeding programme through a proof of concept for selected SME customers. These solutions will range from the Internet of Things (IoT) to business analytics solutions for SMEs in the retail, education, and manufacturing sectors. Successful deployments will be showcased to broaden adoption within the SME ecosystem. Cisco will also launch a digital talent development initiative focused on introducing digital talent to Application Programming Interfaces (APIS) and training on how to navigate its cloud-based network, Cisco Meraki, as well as other mentoring opportunities and hackathon events. “TM is honoured to be the first company to partner with Cisco in bringing the CDA programme to Malaysia, which has the potential to benefit enterprises, consumers and over 400,000 SMEs. This collaboration builds on TM and Cisco’s 17-year partnership and will be the first of many “Innovation Sandbox” collaborations TM will drive, in our efforts to realise the Digital Malaysia aspiration and 5G objectives for the nation,” said Imri Mokhtar, TM’s Group Chief Executive Officer. "Technology plays a critical role in powering an inclusive future for all. Our CDA programme in Malaysia is focused on turning the country's digital economy blueprint into reality by leading the development of core 5G technologies and infrastructure, accelerating the digital transformation of SMEs, and nurturing a pipeline of next-generation IT talent that will continue to support its national ambitions," said Dave West, President, Cisco Asia Pacific, Japan, and Greater China. "We are thrilled to embark on a new chapter of our collaboration with TM and the Malaysian government through our CDA programme and we're excited about the opportunities ahead."
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