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 reports strong 3Q2020 performance amidst challenging environment
Encouraging QoQ revenue growth across all product lines 3Q2020 QoQ Key Financial and Operational Highlights (All comparisons refer to the second quarter of 2020 (Quarter-on-Quarter (QoQ) comparison), except as noted): Group Revenue grew 3.8% to RM2.69 billion from RM2.59 billion recorded in 2Q2020. Group Reported Earnings Before Interest and Tax (EBIT) increased by 7.0% QoQ to RM456.2 million, from RM426.3 million in 2Q2020. Group Reported Profit After Tax and Non-controlling Interests (PATAMI) rose 19.9% QoQ to RM329.5 million compared to RM274.7 million. The total capital expenditure (capex) for 3Q2020 stood at 14.9% of revenue or RM400.0 million. unifi: Continues convergence leadership with growth in broadband and mobile; highest convergence penetration of TM households at 58%. TM ONE: Strengthened position as the digital enabler for enterprise and public sector customers with connectivity and end-to-end cloud offerings. TM Wholesale: Continues to connect industry players, carriers, over-the-top (OTT) providers and content players in Malaysia and globally. Addressing the digital divide: Remain committed to increasing connectivity reach via Jalinan Digital Negara (JENDELA) and accelerating the digital economy with recently announced Malaysia Digital Economy Corporation (MDEC) collaboration. Strong Business Performance for 3Q2020 Despite these unprecedented times, TM Group Revenue continues to increase QoQ recording a resilient 3.8% growth to RM2.69 billion from RM2.59 billion recorded in 2Q2020 on the back of higher revenue from voice, internet and data services. Group EBIT for 3Q2020 increased by 7.0% QoQ to RM456.2 million, from RM426.3 million in 2Q2020, on the back of lower operating cost, from the Group's continued momentum from its cost optimisation programmes. This subsequently led to a 19.9% increase in Group PATAMI from RM274.7 million in the preceding quarter to RM329.5 million. In 3Q2020, the company invested 14.9% of revenue in capex amounting to RM400.0 million - in line with guidance - as it continued to optimise its network and sweat its assets. Of the amount invested, 50% was for network access, 17% for core network, and the balance 33% for support system. Imri Mokhtar, Group Chief Executive Officer, TM, commenting on the results: "We are pleased to report another quarter of growth across all key financial metrics – revenue and profits – despite the challenging environment in Q3. Our efforts in cost optimisation continue to yield results with a healthy EBIT and a strong PATAMI. As we enter the ninth month of the Covid-19 pandemic, our priority continues to be the safety and health of our 'Warga TM' while continuously delivering connectivity and solutions excellence to our broad customer base." "We are seeing unifi gaining momentum, posting a 6.3% growth to 1.65 million subscribers, with our total broadband customer base now at 2.26 million. We achieved the highest convergence penetration (of three services or more) in TM households since 2018, of 58%, as more Malaysians embrace digital living-working in this new norm. On the wholesale front, we continue to collaborate with industry players in Malaysia and globally. At TM ONE, we further cemented our leadership position as the digital enabler for enterprise and public sector customers with enterprise-grade connectivity and end-to-end cloud offerings. We look forward to more collaborations with strategic partners and customers towards establishing a solid foundation for a more Digital Malaysia," Imri concluded. Operational Review: Maintaining Business Momentum TM delivered another quarter of robust performance, driven by its agility to mitigate the impact of the pandemic on Group businesses and operations; leveraging on new avenues for growth in the 'new normal' whilst adapting to challenges. unifi: Continues convergence leadership with growth in broadband and mobile Achieved the highest convergence penetration at 58% of TM households. unifi customer base grew 6.3% to 1.65 million; total broadband customer base grew 2% to 2.26 million during the quarter. Helped empower Small and Media Enterprises (SMEs) with relevant tools and knowledge to grow their businesses and embrace digitalisation with the launch of cari@unifi and eBiz Pack, unifi Business Club (uBC) collaboration with Lalamove and live webinars such as Reboot and Sembang Bisnes. Partnered with Funding Society Malaysia to provide business financing solutions for Micro SMEs (MSMEs) utilising Yellow Pages' digital platform. unifi Mobile extended access to the daily free 1GB Productivity Internet offer to 24 hours, until 31 December 2020, to support Malaysian's connectivity needs in Conditional Movement Control Order (CMCO). TM ONE: Strengthened our position as digital enabler for enterprise and public sector customers with connectivity and end-to-end cloud offerings Scaled up the full capabilities of Cloud α (Cloud Alpha) suite of services with full data residency, locality and sovereignty. Appointed as the technology partner of the Department of Statistics Malaysia (DOSM) to develop and maintain the Population and Housing Census of Malaysia 2020 (e-Census) platform. Continue to support state governments and local city councils to establish future-ready smart cities and smart homes via its TM ONE Smart City Solution enabled by the Internet of Things (IoT) and various smart solutions. TM Wholesale: Continues to connect industry players, carriers, over-the-top (OTT) providers and content players in Malaysia and globally Domestic Secured a new contract with a domestic mobile player for cross ocean connectivity, backhaul connectivity solutions and broadband access capacity upgrade. New backhaul connectivity deal with a domestic mobile player for new backhaul services. International Expansion of content delivery services with an Asian-based OTT player. Secured a deal with an Asian-based OTT player for connectivity solution within Asia Pacific, and two (2) new long term data connectivity deals with global carriers. Additional voice business deals with global service providers worldwide. TM Network remained stable throughout CMCO as a result of continuous network optimisation. This is despite traffic utilisation surging between 30% to 50% depending on peak hours, from March 2020 to November 2020 due to more Malaysians working from home. Supporting the nation's digital agenda and addressing the digital divide: Remain committed to increasing connectivity reach via JENDELA and accelerating the digital economy with the recently announced MDEC collaboration. Prospects for the Current Financial Year Ending 31 December 2020 Following the Covid-19 pandemic, Bank Negara Malaysia has revised Malaysia's annual gross domestic product (GDP) forecast to contract between 3.5% to 5.5%[1], against 4.3% growth in 2019. Uncertainty from the most recent wave of the pandemic from October onwards is expected to bring about further revision to these numbers. As the nation faces this adversity, relying even more on the internet and digital connectivity for work and studies, TM continues to serve as an essential service provider, ensuring stable network performance for the entire nation via both our retail and wholesale fronts. The Government's introduction of JENDELA in September 2020 as well as the RM7.4 billion allocations in the recent National Budget to deliver upgraded broadband services for year 2021 and 2022 will serve as a platform to accelerate Malaysia's digital connectivity through wider deployment of mobile, fibre and fixed wireless access. This will pave the way for 5G under the 12th Malaysia Plan (2021–2025). TM is at the forefront in collaborating with other service providers, enabling and delivering JENDELA. We continue to seek opportunities to cater for future demands of connectivity, in line with our proven commitment to maintain business profitability whilst adapting to and exploring new norms and avenues from this dynamic circumstances that the nation faces today. [1] Sourced from Bank Negara Malaysia, 14 August 2020
TM Announces Upcoming Change In MD / Group CEO
Telekom Malaysia Berhad (TM), is pleased to announce a change in its executive leadership effective 1 August 2023. The change sees Amar Huzaimi Md Deris as the new Managing Director / Group CEO of TM, succeeding Datuk Imri Mokhtar, who completes his 3-year term on 31 July 2023. Currently heading TM's domestic and global wholesale business, Amar is another example of TM's home-grown talent, after Datuk Imri. Beginning his career with TM after graduating in 1998, Amar’s roles have ranged from financial control, internal audit, corporate and regulatory affairs, Group CEO’s office, culminating in his current P&L position at TM Global. His strategic vision, combined with operational experience and grasp of global leading technologies, ideally positions him to steer TM's evolution from a Telco to a TechCo. His achievements have not gone unnoticed, as evidenced by his recognition as one of CPA Australia's 40 young business leaders (2012) and by Capacity Media's 'Power 100' list in wholesale carrier community (2019, 2023). These accolades further attest to his leadership capabilities and the promising future he holds at the helm of TM. Speaking about his upcoming role, Amar said, "Datuk Imri has set the right path for TM, with the strengthened foundation from the turnaround and pursuit of new growth areas – charting the shift from a Telco to a TechCo. I am proud to have been part of that journey; and now, I am enthusiastic to follow through and lead TM to the next level." Datuk Imri expressed his confidence in Amar’s appointment, saying, “Amar is an exceptional TM-grown leader with a proven ability to navigate the business and deliver results. I have full confidence that TM shall attain greater success under Amar’s leadership. I extend my best wishes to Amar, the leadership team and Warga TM as they embark on the next chapter of TM’s growth journey.” The company wishes to extend its gratitude to Datuk Imri for his tenure as MD/GCEO which has seen notable turnaround and growth, and his total of 21 years serving in TM. With the appointment of Amar Huzaimi as the new MD/GCEO, TM is confident it will continue to innovate and grow, building upon its success and further enhancing its role as the enabler of Digital Malaysia.
TM Cooperates with Authorities on Open Manhole Incident in Jalan Abdul Samad, Johor Bahru
TM is deeply concerned about an accident that occurred recently involving a school van and one of our underground manholes at Jalan Abdul Samad, Johor. We are staying updated on the condition of those affected and remain hopeful for their full and swift recovery. The manhole cover was found missing at the time of the incident, and preliminary investigations suggest it was deliberately removed by unauthorised individuals or parties. Our network team has immediately secured the area and closed the manhole to prevent further unauthorised access and ensure public safety. We are fully cooperating with the authorities on their ongoing investigations. Unauthorised access to TM’s infrastructure, such as manholes, poses safety risks and may disrupt essential services relied upon by the community. We urge the public to remain vigilant and report any suspicious activity by calling 999 or visiting the nearest police station. We will continue to monitor the situation and provide further updates as information becomes available.
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