23 Mar 2022
Tune Protect enters partnership with Huawei Malaysia and TM
FIRST TO HOST THE INSURANCE CORE SYSTEM ON TM’S PUBLIC CLOUD IN MALAYSIA
Tune Protect Malaysia (Tune Protect), Huawei Technologies (Malaysia) Sdn Bhd (Huawei Malaysia) and Telekom Malaysia Bhd (TM) announced a collaboration today for Tune Protect to re-platform its existing GIS (General Insurance System), an insurance core system on Cloud. The hosting of Tune Protect’s core insurance system on Cloud is the first for insurers in Malaysia as it progresses in its digital transformation. The core system comes with a set of SAP HANA and SAP applications that will be completely hosted in TM Cloud αEdge (pronounced as Cloud Alpha Edge) which provides multi-cloud deployment management platform, scalability reliance and trust . This pivotal move is part of Tune Protect’s Cloud First strategy , and in line with current market demand.
Works are currently underway for the core insurance system to be deployed in multiple phases commencing July 2022. Rohit Nambiar, Group Chief Executive Officer of Tune Protect said, “As the first insurer to have received the approval to host the core system on Cloud, we are further enhancing our group credentials. Cloud is the centrepiece of our digital transformation that will enable us to achieve speed-to-market and introduce more innovative products and services for our customers.”
TM Cloud αEdge plays an important role as digital platform enabler through the offerings of comprehensive set of cloud services in Malaysia and will transform Tune Protect’s existing business capabilities and services into a highly scalable, and agile cloud native open standard and platform to unlock its existing capabilities into unlimited digital value. This transformation is crucial to support today’s fast-paced and demanding business operations and ensure the company consistently stays competitive in the market.
Partnering with Huawei Malaysia and TM has brought Tune Protect to a whole new level of engagement experience. Aside to providing cloud and digital services, Huawei and TM have also demonstrated teamwork and commitment through the rendering of advisory and consultation in terms of compliance and technical requirements that align to the guidance provided by Bank Negara Malaysia (BNM).
This will be the first core insurance system in Malaysia that has been officially approved by BNM and will be hosted on TM Cloud αEdge -- the only Malaysian-owned Hyperscaler Public Cloud, that primarily promotes data sovereignty. This marks a significant milestone for the company as TM’s Cloud αEdge meets the data protection standard and compliant to BNM’s Risk Management in Technology (RMiT) full guidance requirements checklist, making it the ONLY Public Cloud choice for financial service industry (FSI) customers’ cloud adoption in Malaysia.
Meanwhile, Imri Mokhtar, Group Chief Executive Officer of TM said, “We fully understand the importance for FSI customers, including insurers such as Tune Protect to have highly secured digital infrastructure while they continue accelerating their digital adoption. Given the rising volume of digital transactions and our commitment to excellent customer experience, we must ensure that the infrastructure supporting our partner is resilient, scalable and protected on all fronts. With TM Cloud α Edge being fully compliant to BNM’s RMiT, FSI players can reap the benefit of scalability and agility to future-proof their business, while simultaneously protecting customer data, at a superior price advantage. Through our enterprise and public sector business solutions arm, TM ONE, we are ready to serve the industry with end-to-end robust and secured digital infrastructure, befitting our role as the sole Malaysian Cloud Service Provider (CSP) under the MyDIGITAL initiative.”
In conveying his appreciation and support for this collaboration, Huawei Malaysia’s Vice President of the Cloud and AI Business Group, Mr Lim Chee Siong said, “It is always our goal at Huawei Cloud to dive into digitalisation and to provide everything as a service. Huawei will continue to innovate and team up with TM and our partners to dive into digital and build the cloud foundation for an intelligent world. Cloud is just the beginning. We view it as a runway to transport businesses to even greater heights.”
TM is the only local player with its own core Data Centre and Cloud infrastructure with full data residency, locality and sovereignty. Through the collaboration with Huawei Malaysia, this infrastructure is reinforced through Cloud, AI and the most advanced cybersecurity practices and technologies, putting it right on track to become the only Malaysian-owned end-to-end Cloud AI infrastructure service provider. This means the data in the Cloud is stored right here in Malaysia instead of abroad, providing a solution to the challenge of data sovereignty.
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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. 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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. 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TM and Huawei collaborate to accelerate 5G commercialisation in Malaysia
Both parties exploring a working mechanism to cover spectrum, business case, ecosystem and key technologies towards empowering Digital Malaysia. Telekom Malaysia Berhad (TM) and Huawei Technologies (M) Sdn Bhd (Huawei) have recently signed a Memorandum of Understanding (MoU) to collaborate in accelerating 5G commercialisation in Malaysia as the country moves towards a Digital Nation. The MoU was signed by both companies at TM-Huawei Tech Summit held recently. Ir. Ts Azizi A. Hadi, Chief Network Officer, TM signed the MoU on behalf of TM while Mr. Zac Chow, Vice President Huawei Malaysia, represented Huawei at the signing ceremony. Commenting on the collaboration, Dato' Noor Kamarul Anuar, Group Chief Executive Officer, TM said, "It is an exciting development for us to collaborate with a global player like Huawei to accelerate the offering of 5G services to Malaysians. As a national telecommunications infrastructure provider of Malaysia's Digital Nation aspirations, 5G technology will complement our existing wired-based offerings, world class connectivity as well as digital infrastructure. It will enable us to deliver more innovative digital solutions to all our customers across various segments. TM via its innovative and comprehensive products and solutions will continue to lay the foundation for Industrial Revolution 4.0 and rolling out 5G nationwide - serving a more digital society and lifestyle, digital businesses and industry verticals, as well as digital Government. This collaboration augurs well for the accelerated deployment of future 5G network, applications and solutions for Malaysian homes, businesses and beyond, in line with our aspiration to power Digital Malaysia." Meanwhile, Michael Yuan, Chief Executive Officer of Huawei said: "TM and Huawei have been working hand-in-hand for 15 years. We have been working together to connect more people than ever before. We are now at the crossroads of digital transformation. Huawei will fully support TM's aspiration to power Digital Malaysia, and will work together with TM to building a better connected and intelligent Malaysia via 5G." Under the MoU, both parties intend to explore on collaborating by leveraging on each other's core expertise and capabilities to explore a working mechanism covering spectrum, business case, ecosystem and key technologies. This would include collaborating for a joint study on 5G spectrum and its evolution; possible joint development of new services concepts and business case of selected 5G use cases which include but not limited to Fixed Wireless Access (FWA), Smart Cities and Vehicle-to-Vehicle or Vehicle-to-Infrastructure (V2X); joint study in the areas of 5G Ecosystem Innovation; and explore future cooperation on full-fledged 5G end-to-end system. Through this collaboration, a joint working group will also be set up to identify areas of copper line services with the aim towards improving customer experience through FWA technology and/or services. "With this collaboration, we further strengthen our role as a national telecommunications infrastructure provider of Malaysia's Digital Nation aspirations, where TM has established the communications backbone of Malaysia with the widest connectivity and convergence network. As a responsible nation-builder, we will continue to serve as a strategic enabler of the National Fiberisation and Connectivity Plan (NFCP), backed by our solid infrastructure towards empowering Digital Malaysia" Dato' Noor Kamarul Anuar concluded.
TM’s Edge Facilities Win W. Media’s Asia Pacific Cloud And Datacenter Award For The Southeast Asian Region
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