About TMAbout TM

About TM

Corporate Profile

 

Corporate Profile

From its early days as the Malayan Telecommunications Department in 1946, TM charted a growth path that saw its corporatisation in 1987, initial public offering and listing on Bursa Securities in 1990, its evolution as a company with a record financial performance in its country of domicile as well as an expanding footprint in Asia and elsewhere, and the launch of a new brand identity in 2005. Over the years, TM has evolved to become the largest integrated telecommunications solutions provider in Malaysia and one of Asia’s leading communications companies. TM’s success and growth has been remarkable, given the highly-competitive environment in which it operates. With a current Group staff strength in excess of 36,000 with operations and interests in 13 countries, TM is focused on being a recognised leader in all its markets, delivering exceptional value to its customers and achieving sustainable growth in both local and international Markets.

As an integrated telecommunications company, TM offers a comprehensive range of communication services and solutions in fixed line, data, mobile and Internet, and multimedia. Supporting this extensive range of products and services is a world-class communications infrastructure, spanning the entire country and going beyond Malaysian shores. In facilitating regional and international telecommunications, TM has in place an extensive combination of satellite, terrestrial and submarine fibre-optic cable systems to deliver both domestic and international data services.

In August 2006, TM implemented the second phase of its corporate re-organisation that saw the creation of a Strategic Business Unit called Malaysia Business to consolidate all domestic fixed services and align businesses with a common agenda. Incorporating TM Retail, TM Wholesale and TM Net Sdn Bhd, Malaysia Business focuses on TM’s fixed line and data, as well as Internet and multimedia businesses. As at 31 December 2007, TM’s fixed services customers stood at 5.7 million, inclusive of fixed line, Internet and multimedia.

TM’s mobile arm, Celcom (Malaysia) Berhad (Celcom), is Malaysia’s premier mobile communications provider. Celcom has steadily made its presence felt in the market through its innovations, which have raised industry standards and provided product and service benchmarks in the country. Celcom was the first mobile operator in Malaysia to launch 3G services commercially. Leveraging on its partnership with Vodafone, Celcom launched the Vodafone Mobile Connect 3G Broadband (HSDPA) data card and Blackberry by Vodafone which extends the product offerings to its growing subscriber base. The Company also launched PowerTools for the enterprise market, formed an alliance with online search engine Google, and joined hands with Maybank to introduce Malaysia’s first mobile financial services, the Maybank2u Mobile Service. As at 31 December 2007, Celcom’s customer base stood at 7.2 million.

In its quest for future and sustainable growth, TM is focused on continued regional expansion in markets closer to home. Today, TM is an emerging leader in Asian communications with operations and interests in the region and globally. Together with its mobile operations in Malaysia, TM’s regional mobile customer base stood at 39.8 million as at end of 2007. Apart from Malaysia, TM has nine key markets within Asia: Indonesia, Singapore, Cambodia, Thailand, Bangladesh, Pakistan, India, Sri Lanka and Iran, with businesses focusing mainly on the mobile segment. TM’s investment philosophy is to play an active role in its international operations (where it has management control), with the aim of building value in its investments by hiring and developing local talents, sharing expertise, knowledge and best practices, contributing to infrastructure development in the countries in which it has investments, as well as providing opportunities for wealth creation among the local population. Evidence of this can be found in the highly-successful listing of TM’s pioneer investment in Sri Lanka, Dialog Telekom Limited (Dialog) on the Colombo Stock Exchange in July 2005. With a market capitalisation exceeding US$1 billion. Dialog was the largest Initial Public Offering in Sri Lanka’s corporate history. The successful listing of Dialog provided the opportunity for local ownership of a well-run company and the sharing of the Company’s wealth with the Sri Lankan public. Dialog continues to lead the mobile industry in Sri Lanka with a market share of more than 60%.

Complementing its investment forays abroad, the international arm of TM’s wholesale business, TM Global, provides a wide array of voice, international bandwidth, IP and data services capacity across six continents, namely Asia, Europe, the Americas, Oceania, Middle East and Africa. In the ASEAN region, TM Global has business tie-ups and arrangements with telcos in Singapore, Philippines, Brunei, Indonesia, Thailand, Myanmar, Cambodia, Laos and Vietnam. TM Global has also set up Global IP Nodes in Singapore, Hong Kong, Japan, UK, US, Netherlands, Egypt, Bahrain and Indonesia, while Sri Lanka and Pakistan Global IP Nodes were in progress in 2007.

Meanwhile, on 28 September 2007, TM proposed to undertake a demerger exercise to separate its mobile and fixed businesses currently managed as one, into two business entities as follows:

  • FixedCo (TM) – This entity would retain TM’s domestic interests in fixed-line voice, data and broadband and other non-telecommunication related services under TM Ventures.
  • RegionCo (TM International) – This entity would include all TM’s mobile and overseas operations under TM International, and domestic mobile operations under Celcom (Malaysia) Berhad. The demerged entity would then seek a separate listing.

This move would create two leading communication companies, each clearly focused on its own core business or core competency. One will be positioned as a champion of regional mobile services, and the other a leader in domestic fixed services including high-speed broadband.

On 10 December 2007, TM unveiled the final terms of the demerger which would ensure the Group continued to derive greater shareholder value from both businesses, and ultimately benefit all its stakeholder communities.

As a leading Company, TM remains committed to the principles of Corporate Responsibility through its various stakeholder activities and projects, significantly contributing towards the national agenda and the communities where it has a presence. In this, TM is driven by a belief that good Corporate Responsibility is a fundamental tenet of good Corporate Governance. Besides running a sustainable enterprise in line with international best practices, TM fulfils its corporate responsibility towards the community via three major platforms, i.e. education, sports development and community and nation-building. In Education, TM has invested considerably in establishing and growing the internationally-recognised Multimedia University into one of the top private universities in Malaysia with more than 20,000 students enrolled in 2007. As part of capacity-building, TM provides scholarships to deserving students. More than 10,000 graduates have benefited from TM scholarships since 1994. On the Sports Development front, TM is involved in the promotion and strengthening of football at all levels, while under the Community and Nation-Building platform, the Group contributes towards causes that bring tangible benefits to society and the nation at large.