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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TM Announces a Positive Start in 1Q 2024, Sustaining its Continuous Growth Trajectory
Q 2024 Key Highlights (vs 1Q 2023) Operating revenue grew 1.8% to RM2.84 billion EBIT increased 37.5% from RM473.3 million to RM650.9 million PATAMI increased 28.7% from RM330.1 million to RM424.8 million KUALA LUMPUR, 30 May 2024 – Telekom Malaysia Berhad (“TM” or “the Group”), today announced a positive start to the fiscal year, with a strong financial performance for the first quarter ended 31 March 2024 (1Q 2024). The Group saw its revenue increase by 1.8% to RM2.84 billion, driven by solid performance from TM Global and growth in Unifi’s subscriber base. Correspondingly, Earnings Before Interest and Tax (EBIT) grew 37.5% to RM650.9 million in the quarter under review on the back of lower total Operational Cost. TM’s Profit after Tax and Non-Controlling Interests (PATAMI) increased by 28.7% to RM424.8 million, demonstrating its sustained profitability. Meanwhile, the Group’s Capital Expenditure (CAPEX) stood at RM204.0 million, or 7.2% of its revenue. These investments were aimed at expanding the Group’s network infrastructure nationwide and regional submarine cable systems. Amar Huzaimi Md Deris, TM’s Group Chief Executive Officer said, “Entering 2024, the operating environment remains challenging due to increased competition and evolving market dynamics. Nevertheless, the Group has shown a positive growth trajectory in the first quarter of 2024. This is evidenced by increased revenue, improved profitability, and steady growth in our fixed broadband subscribers, reaffirming our strong position in the market. “To sustain our positive momentum, we will continue enhancing our retail convergence offerings and value-added solutions in delivering improved customer experience. At the same time, we maintain a strong focus on modernising our data and network infrastructure, as well as enhancing our business-related offerings to meet current and future digital needs. “Moving forward, as part of our transformative journey towards becoming a Digital Powerhouse by 2030, our priorities over the next few years include growing our core businesses, enhancing beyond connectivity by embedding Artificial Intelligence (AI) and capturing new business growth to meet future demands. In addition, we will continue to optimise costs and enhance profitability to ensure better returns for our shareholders,” Amar concluded. The Group maintains a positive outlook for the current year, staying aligned with the previously provided 2024 guidance. Lines of Businesses (LOBs) Performance Unifi maintains leadership in converged services Unifi maintained consistent year-on-year (YoY) growth with a 1.8% increase in fixed broadband subscribers, reaching a total of 3.135 million. This is driven by convergence marketing strategies, aggressive sales and customer retention programmes. It recently launched UniVerse, the best convergence plan to date for broadband, mobile, entertainment, and digital lifestyle solutions, designed to enhance connectivity, content and Home Hub needs of today’s customers. For more information about Unifi UniVerse, visit www.unifi.com.my. During the quarter, Unifi Business, the leading digital solutions partner of over 400,000 Micro, Small and Medium Enterprises (MSMEs) nationwide, partnered with Maybank Islamic Berhad to launch ‘Go Niaga’, a mobile banking bundle to help businesses manage finances and improve income with digital payment options. It also launched e-Pharmacy Solution, a mobile app enabling e-prescriptions via teleconsultation to provide digital inclusion and accessible healthcare for prescribed medications and wellness especially to the underserved communities. Looking ahead, Unifi will continue to solidify its role as a leader in convergence to deliver unmatched converged digital services. TM One drives innovative solutions for enterprise and Government TM One, the enterprise and government sector business solutions arm of TM continues to adapt to market dynamics while seeking new opportunities for growth. During the quarter under review, it recorded a revenue of RM673.0 million. In February, TM One launched the Innovation Lab and Enterprise 5G Lab to accelerate the realisation of emerging digital services and solutions. These labs bring together the latest technologies, digital leaders, inspiring ideas and collaborative spaces to create tailored solutions for its customers and partners. These facilities were set to further develop key areas like Enterprise 5G and innovative AI-powered industry solutions to help organisations thrive in the digital era. Moving forward, TM One will continue to strengthen its core connectivity offerings while driving innovation in digital services, expanding partnerships, and developing solutions that empower its customers. TM Global positions Malaysia as a digital hub for the region TM Global saw a 12.1% YoY increase in revenue to RM742.8 million in 1Q 2024, fuelled by demand for domestic and international data. It has remained as Malaysia’s preferred network infrastructure provider, catalysing the digital industry, fostering 5G ecosystem and expanding High-speed broadband (HSBB) Access in the country. Globally, it provisioned significant managed wavelength capacity for hyperscalers, connecting key regional data centres. It also recorded substantial growth in Content Delivery Network (CDN) traffic to cater to the demand from digital players, enabling Malaysia as a digital hub for the region. 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TM records steady performance in 1Q2022 with revenue & PATAMI up 2.9% & 4.4%; maintains focus on its growth strategies execution
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Capitalising on its core businesses and investing into new growth areas, TM further ramped up its transformation initiatives, delivering profit after tax and non-controlling interests (PATAMI) for the quarter at RM339.9 million or 4.4% higher than the RM325.5 million recorded in 1Q2021. The Group also recorded lower financial costs subsequent to the early redemption of its RM2.0 billion sukuk in March 2021, as well as lower foreign exchange translation losses on borrowings. The Group has applied the Cukai Makmur statutory tax rate accordingly for the current quarter. Accelerating into the second year of its Transformation, TM brought forward its manpower optimisation to enable earlier realisation of expected benefits to the Group. This, along with foreign exchange impact on trade settlement has led to a 5.0% decrease in EBIT at RM560.4 million for 1Q2022 compared to RM589.7 million in the same quarter last year. Excluding these costs, the Group's underlying EBIT is 14.0% higher at RM650.2 million compared to RM570.5 million in 1Q 2021. Free Cash Flow is lower by 15.1% at RM658.8 million compared to RM775.7 million due to higher CAPEX as the Group continues to invest in business expansion and meeting customers' demands through technology refresh and network delivery, ensuring steady growth. unifi: Double-digit revenue and subscriber growth unifi continued its growth performance, recording revenue increase of 10.6% from RM1.25 billion to RM1.38 billion in the current quarter. Sustained by increasing demand from Internet, voice and sales of devices, with cumulative fixed Internet subscribers increasing by 17.5% against the corresponding quarter last year. unifi remains the largest growth contributor for the Group. unifi will continue to maintain its leadership in fixed broadband and enhance its Fixed-Mobile Convergence (FMC), enriched with TV and streaming content. This reflects its commitment to improve its FMC customer experience with better and seamless service. unifi will also grow its SME digital platform as a one-stop service centre for solutions catering especially to SMEs nationwide. TM Wholesale (TMW): Higher revenue from increased demand for data services TM Wholesale (TMW) also recorded a growth performance for 1Q2022, with revenue increasing by 1.2% from RM631.9 million in 1Q2021 to RM639.5 million, mainly contributed by higher revenue from voice and data services. This was underpinned by increasing demand from High-speed Broadband Access (HSBA) and higher International Voice and Data. To date, TMW continues to enable industry broadband and 4G network via its fibre infrastructure, with the ongoing 5G rollout further strengthening that role. On the international front, it will continue to serve other OTTs and hyperscalers with connectivity and data centres, while regionally, TM Wholesale aspires to establish Malaysia as a digital hub for ASEAN via new submarine cables, enhanced data centre solutions and edge computing. TM One: Renewed focus on growing B2B digital solutions market TM One, the Group's enterprise and public sector arm, recorded a 7.4% decrease in revenue from RM925.2 million to RM856.8 million in 1Q2022 due to decline in data services revenue. Strengthening and growing its B2B digital solutions, TM One has focused its efforts on high potential industry verticals, namely healthcare, manufacturing, education, oil & gas, banking, financial services & insurance (BFSI) and public sector. It has entered a partnership with Tune Protect and Huawei Malaysia that saw Tune Protect becoming the first organisation in Malaysia to host an insurance core system on public cloud (Cloud αEdge). Commentary and Outlook from Imri Mokhtar, TM Group Chief Executive Officer "With our economy and borders reopening, TM is powering Malaysia's journey on its road towards recovery, by ensuring the vision of an inclusive and extensive Digital Malaysia becomes a reality. "Into the second year of our Transformation, we are focused on strengthening our core business while investing into new growth areas to meet customers' demands. In ensuring sustainability in the long run, we continue to grow our profitability to invest and seize opportunities arising from digital acceleration. "One of these opportunities is in the exciting space of digital solutions and services for enterprises. Building on TM One's existing capability and relationships with enterprises and the public sector, we will deliver speed and agility through our new digital arm Credence: a corporate start-up led by technology leaders. "unifi continues to better its fixed broadband and Fixed-Mobile Convergence value proposition to improve customer experience, while expanding our offerings to provide quality entertainment to customers at home or on-the-go. "We have also achieved some key milestones in our sustainability efforts. TM One has successfully secured the Green Electricity Tariff from Tenaga Nasional Berhad for its data centres in Kuala Lumpur, Cyberjaya and Johor Bahru, contributing to a lower carbon footprint as the demand for cloud storage inevitably increases. This is in addition to the existing Green Building Index (GBI) certification earlier obtained for its core data centres. TM's broader ESG commitment also remains consistent with Malaysia's initiatives towards achieving net-zero Greenhouse Gas emission for the country by 2050. "Meanwhile, TM Wholesale continues to establish Malaysia as a regional digital hub via new submarine cables, edge computing, data centres and supporting international connectivity. On the domestic front, TM Wholesale continues performing its role as the enabler for industry broadband, 4G and 5G network via fibre infrastructure that will transform the nation's connectivity capabilities."
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