18 Jun 2024
TM AND SINGTEL’S NXERA FORM JOINT VENTURE TO DEVELOP NEXT-GENERATION DATA CENTRES
KUALA LUMPUR, SINGAPORE, 18 JUNE 2024 – TM is partnering Nxera, the regional data centre arm of Singtel’s Digital InfraCo unit, in a joint venture to develop data centres in Malaysia starting with a sustainable, hyper-connected AI-ready data centre campus in Johor. This strategic partnership aims to serve the needs of hyperscalers, next-generation AI application providers and enterprises pursuing accelerated digitalisation and cloud in the region. The joint venture is a unique proposition, bolstered by the extensive subsea cable networks of TM and Singtel’s Digital InfraCo which provide global connectivity and enhanced network performance with lower latency and improved reliability.
Amar Huzaimi Md Deris, TM’s Group Chief Executive Officer, said, "Establishing a hyper-connected AI-ready data centre marks the next phase in our long-standing partnership with Singtel, leveraging our strengths and commitment to elevate ASEAN as the preferred digital hub destination. TM brings the largest domestic network infrastructure, extensive international subsea cable systems and the largest interconnected DC in Malaysia, a solid backbone for this project. This will serve as a catalyst for high performance computing and lay a solid foundation for the future advancement of cloud and AI applications. This collaboration of two main telcos in the region is unique and has positive impact to the development of digital ecosystem that not only benefit the businesses but also nurturing future talent. Through this partnership, TM continues to demonstrate its dedication to delivering innovative and sustainable solutions, marking a pivotal step in our aspiration to becoming a Digital Powerhouse by 2030.”
Bill Chang, CEO of Nxera and Singtel's Digital InfraCo unit, said, "We are excited to enter the Malaysian market with TM as our strategic partner. This collaboration advances our vision to be the region’s leading sustainable, hyperconnected AI-ready data centre platform, supporting businesses with the digital infrastructure needed for the growing demand for cloud, digitalisation and AI. The development of this first data centre campus in Johor, which can be expanded in phases, demonstrates our ability to scale quickly in markets that are important to our customers. With our joint industry expertise and strong track record, we will build and operate one of the most efficient, sustainable and connectivity-rich data centres in Malaysia. In addition to data centres, we will be expanding the submarine cable connectivity between Singapore and Johor to enhance digital connectivity. Our joint venture will also partner institutes of higher learning in Malaysia to nurture talent for our projects and the industry. Our strategy of developing data centre sites with close proximity to our operations in Singapore allow us to capture spill-over demand from our customers and help them scale their business with confidence.”
Located in Iskandar Puteri, just 16 km from Singapore, the data centre campus will be the largest to date for both TM and Nxera. It will be built to the latest standards for reliability, security and sustainability while offering the best local and international connectivity. With its close proximity to subsea cable links between Singapore and Malaysia, the data centre will be well-placed to support the increasing demand from both countries’ digitalisation and development initiatives.
The initial phase of the data centre is planned for 64MW and can be scaled up to 200MW in response to market demand. This high-power density campus will be able to host large computing and AI capabilities such as requirements by cloud hyperscalers, GPU-as-a-Service providers and features advanced technologies such as liquid cooling to support high-power density workloads and operations efficiently. The data centre will be a LEED-certified (Leadership in Energy and Environmental Design) green building, emphasising its commitment to greater energy efficiency and sustainable practices.
As Malaysia’s integrated telco and technology leader, TM will contribute its expertise in the region’s network infrastructure deployment to deliver customised range of wholesale data, connectivity, data centre and platform solutions catering to both local and international needs. Additionally, TM also provides Cloud services via its sovereign Cloud Alpha Edge solution.
TM currently operates seven data centres across Malaysia with 2 core data centres located in Klang Valley and Johor. Its entry into the Asia Link Cable Systems (ALC) partnership facilitates the laying of a submarine cable system spanning approximately 7,200km, with an initial design capacity of 24 Terabits/sec. Coupled with the establishment of an international Cable Landing Station at TM Exchange Kuala Sedili, Johor, these serve as vital infrastructure enhancements to accelerate the growth of the data centre industry in the state.
Nxera is a rapidly growing regional platform backed by Singtel and leading global investment firm KKR, leveraging its data centre operations in Singapore to expand overseas. Customers can also tap into a host of services such as Singtel’s Paragon cloud orchestration platform and upcoming GPU-as-a-Service. They will be able to orchestrate their AI workloads in a multi-network and multi-cloud environment, serving as a catalyst for greater innovation, entrepreneurship and business excellence.
Nxera is developing three new AI-ready data centres in the region in addition to 62MW of existing capacity in Singapore. This includes a new 58MW data centre in Tuas, Singapore and data centres with partners in Indonesia and Thailand. Nxera’s total pipeline capacity is set to increase from its current operational capacity of 62MW in Singapore to more than 200MW in the region in the next three years. The data centres will be served by Digital InfraCo's comprehensive network of subsea fibre-optic cables which provide customers with the best country-to-country connectivity in the Asia Pacific region.
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TM ONE REINFORCES COMMITMENT TO ENABLING MELAKA'S DIGITAL TRANSFORMATION ASPIRATIONS
KUALA LUMPUR & MELAKA, 30 DECEMBER 2024 – TM One, TM’s enterprise and government sector solutions arm, has reinforced its commitment to enabling Melaka’s digital and sustainable development through various collaborations with local agencies. Working with Majlis Perbandaran Alor Gajah (MPAG) and Syarikat Air Melaka Berhad (SAMB), TM One is deploying digital solutions to support the state’s economic growth, public services, and aspirations to become a model smart city. TM One also recently welcomed Datuk Seri Utama Ab Rauf Yusoh, Melaka’s Chief Minister, to the TM Response Centre Melaka, one of three facilities that supports emergency responses across Malaysia. The Centre is staffed by over 150 personnel who manage emergency response calls 24/7, ensuring quality control, technical support, and data management. Handling over a million calls every month, the Centre serves as a critical national infrastructure that connects citizens with emergency responders, reinforcing public safety and security. Shazurawati Abd Karim, TM One’s Executive Vice President, said “The Chief Minister’s visit to TM’s Response Centre and our strategic partnerships with MPAG and SAMB underscore TM One’s expanded role in Melaka’s digitalisation journey. These essential services contribute to the state’s aspirations to enhance public safety, operational resilience, and sustainable urban growth, and are significant steps toward realising Melaka’s vision of becoming a premier smart city. This is part of TM’s aspirations to become a Digital Powerhouse, leveraging our offerings to help government agencies improve the quality of life for Melaka’s citizens.” Enhancing Urban Management In partnership with MPAG, TM One has introduced the Local Urban Observatory (LUO) Smart Solution, a data-driven platform designed to elevate urban monitoring and decision-making in Alor Gajah. This five-year collaboration integrates real-time data analytics, predictive insights, and public service tracking capabilities, enabling MPAG to monitor critical urban metrics, and gain insights on infrastructure management, public services, and environmental sustainability. Shazurawati commented, “Our LUO Smart Solution with MPAG exemplifies how AI and data analytics can drive sustainable urban planning and operational efficiencies. This collaboration empowers Alor Gajah to enhance its public service responsiveness and create a more liveable environment, aligning with Melaka’s smart city development.” Transforming Water Management To modernise Melaka’s water management services, TM One was appointed by SAMB to provide Smart Workforce Solutions. Leveraging the Open Innovation Platform (OIP) and a range of digital tools including Workflow and Job Assignment Software, the solution enables efficient task allocation and tracking for improved metering, restoration, and contractor management. Customised workforce monitoring devices further provide real-time data capture and reporting from on-site locations, improving operational visibility and safety. Additionally, high-speed mobile connectivity supports communication and coordination, ensuring swift task completion and better service quality. Shazurawati concluded, “Our partnership with SAMB highlights the transformative power of technology in essential services, improving efficiency through swift, coordinated responses to critical tasks. By digitalising workforce operations, we are enabling SAMB to improve operational resilience and elevate service standards for the people of Melaka.”
TMpoint Kajang reports one (1) new positive Covid-19 case
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TM Records a Promising 1Q2023 Performance with 2.0% Revenue Growth; Continues to Strengthen its Core Business
1Q2023 Key Highlights (vs 1Q2022) · Operating Revenue grew 2.0% from RM2.89 billion to RM2.95 billion, with continuous growth across Unifi and TM Global · EBIT decreased 15.5% from RM560.4 million to RM473.3 million, following accelerated depreciation and impairment · PATAMI lower 2.9% from RM339.9 million to RM330.1 million, lower EBIT cushioned by lower net finance cost and effective tax rate · CAPEX investment stood at 14.0% of revenue or RM413.1 million, heavily attributed to fibre network expansion Amidst the challenges for the year, Telekom Malaysia Berhad (TM) achieved a steady and promising performance in the first quarter that ended on 31 March 2023, compared to the same period in the previous year (YoY). Operating revenue grew 2.0% to RM2.95 billion, from RM2.89 billion in 2022, driven by Unifi and TM Global. TM saw an increase in customers with Unifi now serving close to 3.5 million home and MSME customers, TM One catering to 8,800 businesses, and TM Global serving more than 700 local and regional customers. Its reported Earnings Before Interest and Tax (EBIT) is lower 15.5% to RM473.3 million, from RM560.4 million, following the Group’s decision to accelerate depreciation and impairment of IT assets, due to changes in market conditions. Profit After Tax and Minority Interest (PATAMI) decreased 2.9% to RM330.1 million from RM339.9 million. Lower net finance cost and lower effective tax rate from the recognition of deferred tax assets mitigated the impact of the lower EBIT on the Group’s overall profitability. Capital Expenditure (CAPEX) stood at 14.0% of overall revenue, or RM413.1 million. A significant portion of this investment was dedicated to fortifying its fibre infrastructure, delivering new customer acquisition, international subsea cables investment and 5G fibre network deployment to meet Government’s target of 80% coverage by year end. Unifi sustaining growth trajectory Unifi continues to deliver leadership in convergence service and solutions for both home and MSMEs customers. Unifi reported a 1Q2023 revenue growth of 4.3% from RM1.38 billion to RM1.44 billion contributed by both, growth in number of subscribers and average revenue per customer (ARPC). Unifi fixed broadband subscription increased by 8.1% to 3.08 million propelled by aggressive sales, and promotions such as the 6-months complimentary speed upgrade offered to existing Unifi Home users and 7-days free viewing of all Unifi TV channels during Chinese New Year. Unifi Mobile unveiled its latest offerings, the UNI5G prepaid and postpaid plans, which include complimentary 5G access for all current mobile subscribers. Additionally, Unifi introduced the Pakej Perpaduan Jalur Lebar Tetap (Home Internet) and Pakej Perpaduan Prabayar Mudah Alih (Prepaid Mobile) plans specifically designed for underserved communities, providing inclusive and ubiquitous connectivity for the community. Unifi Business’ collaborative efforts with local government agencies have been instrumental in supporting MSMEs to digitally grow their businesses. As part of this initiative, Unifi Business launched a programme in Sabah that has resulted in a significant participation of local entrepreneurs. TM One navigating challenging market and shifting demand TM One recorded a 6.7% slowdown in revenue from RM773.7 million to RM721.9 million in the current quarter, largely due to the impact of price reduction and lower revenue from one-off customer projects. The delivery of key projects across several industries shall set the pace for TM One in the coming quarters. TM One delivered a Private 5G solution to enable Smart Industry solutions and completed a hybrid cloud project that is instrumental to the IT backbone transformation of its customer. TM is also the only telco with a 100% completion record for the Point of Presence (POP) Phase 1 Project, successfully delivering 233 sites across the northern states, Sabah and Sarawak. Building on the success of TM One 5G Sphere Partner Programme launched end of 2022 where more than 90 leading partners are registered today, TM One launched its Sandbox platform providing a secure and controlled environment for enterprise and Government customers with technology partners to co-create and commercialise innovative smart service solutions, which will propel their digitalisation and automation drive. TM Global catalysing digital inclusivity TM Global reported continuous growth in 1Q2023, with revenue increasing by 3.9% from RM625.1 million to RM649.2 million, contributed by higher data and data centre co-location services. As the leading partner for High-Speed Broadband Access (HSBA), TM Global achieved the highest number of new installations in March, supporting collective industry growth throughout Malaysia. Additionally, close to 8,000 4G and 5G fiberisation site were deployed to meet the growing demands of industry players and enhance nationwide edge capabilities, further propelling national digital initiatives. Internationally, TM Global secured deals from US-based hyperscaler and North Asia digital provider for its wholesale data centre solutions as well as a substantial deal from ASEAN telecommunication player for more than 10Tbps data requirement within this region. TM Global remains focused on positioning Malaysia as the preferred digital hub for the ASEAN region through its comprehensive and customised offerings for hyperscalers, global carriers and digital players. Commentary and Outlook from Dato’ Imri Mokhtar, TM Group Chief Executive Officer “2023 is expected to be a challenging year with changes in the regulatory landscape, heightened competition and other market structure changes. TM will continue strengthening its core business to be commercially sustainable as a Public Listed Company (PLC) whilst continuing to contribute to the nation’s growth via its role as a Government Linked Company (GLC). “As the national connectivity and digital infrastructure provider, TM will continue to execute the fiberisation plan to support the Government’s National Digital Network (JENDELA) programmes as well as the 5G rollout nationwide. TM looks forward to continue playing an active role in the 5G implementation, leveraging its nationwide fibre infrastructure, extensive digital platforms (data centres, edge nodes) and rollout experience. “We remain steadfast as we enter the final year of our 2021-2023 Transformation Programme, and pursue the next wave of growth beyond 2023. In line with our journey to become a human-centred TechCo, we announced the launch of TM’s new HQ and Campus, located in Cyberjaya. The campus will serve as a catalyst for a new way of working that drives agility and flexibility through digital collaboration and hybrid work environment, propelling innovation among our employees, customers and partners. “We will continue to advocate sustainability efforts and strive for progress. TM has released our first Task Force on Climate-related Financial Disclosures (TCFD) report, 2 years ahead of Bursa Malaysia’s 2025 requirement. The report focuses on increasing transparency around the financial implications of an organisations’ climate-related risks and opportunities. “Though cautious with the overall outlook, we remain optimistic with the prospects of increased hyperconnectivity, continuous growth investments in connectivity and digitalisation across all customer segments. TM will continue to enable a Digital Malaysia by offering comprehensive suite of communication services and digital solutions benefitting communities, businesses and Government.”
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