Strategy at a Glance

Our Vision
To make life and business easier, for a better Malaysia
Our Mission
Delivering customer experience excellence through converged and digital services

DIGITAL NATION GOAL

The new strategic direction of TM will contribute to Malaysia as a developed and digital nation, enabled by connectivity that underpins all digital infrastructure and applications in the country

Digital Society
Empowering citizens with the right skills and culture to live and thrive in a digital world and thereby improving their quality of life
Digital Economy
Acceleration of the digitisation of core processes across all priority sectors and promoting the ICT sector growth as an independent economic engine
Digital Government
Digitisation of government operations and services facing citizens and businesses in order to improve efficiency, productivity and experience

DIGITAL INFRASTRUCTURE

Payments
Digital ID
CyberSecurity
Data
Geographic Information System
Cloud
IOT & Smart Cities
Connectivity
THE PHYSICAL FIXED AND WIRELESS INFRASTRUCTURE THAT UNDERPINS ALL OTHER DIGITAL INFRASTRUCTURE AND SERVICES

Our strategic journey towards sustainable value creation continues by transforming into a customer centric organisation that enables the Digital Nation

KEY FOCUS AREAS 2019-2021

TM Life Made Easier

AMBITION

Customer Centric Organisation
Customer experience excellence as top priority and main objective in our business operations

STRATEGIC PILLARS

Converged Services
Maintain existing revenue streams and uplift revenue over time by delivering new services in convergence and digital solutions
Simple and Digital
Digitise customer experience whilst simplifying products, processes, network and IT operations
LEAN AND LOWER COST
Optimise costs from significant operational efficiencies, increase in productivity and change to leaner operating models

ENABLERS

INTEGRATED NETWORK INFRASTRUCTURE AND DIGITAL PLATFORMS
Make selected investments in our integrated network infrastructure to expand our coverage and build digital platforms to improve customer experience and our business operations
PEOPLE DEVELOPMENT
Nurture and equip our people through capacity-building, future-skilling and new ways of working as well as inculcate a customer-centric culture mindset

In the near and immediate term, we have identified PIP2019-2021 initiatives guided by four (4) drivers, which are set to accelerate our efforts across the Group to strengthen our delivery and business performance

PERFORMANCE IMPROVEMENT PROGRAMME 2019-2021 (PIP2019-2021)

REVENUE PRESERVATION AND UPLIFT
Defend, then grow our revenue via strategic business initiatives for unifi, TM ONE and TM GLOBAL
SUSTAINED PROFITABILITY
Optimise costs by improving our network, IT and maintenance efficiency through process simplification and eliminating redundancies
IMPROVED CASH FLOW
Prioritise CAPEX spending through sweating of assets, selected investments and efficient portfolio management
INCREASED PRODUCTIVITY
Achieve next level of productivity through digitisation and simplification, cultivating new ways of working and transforming into an agile and lean organisation

Our Business Model

We operate through our customer clusters of unifi, TM ONE and TM GLOBAL supported by centralised technology professionals and corporate functions.

Our purpose
Customers we serve
Customer Clusters
Products & Services
Support Business and Corporate Function
Value Creation for Shareholders and Supporting Nation Building
Homes & SMEs

Enriching customer lives through a digital lifestyle

  • Streamyx
  • unifi Home
  • unifi Biz
  • unifi Mobile
  • unifi TV
  • unifi WiFi
Enterprises & Public Sector

Create value for businesses through digital enablement

  • Vertical Solutions
  • Business Process Outsourcing
  • Cloud & Data Centre
  • Enterprise Network Services
  • Collaboration
  • Security Services
  • IoT and Smart Services
Local & Global Telcos, OTTs

Connecting Malaysia to the world with borderless opportunities

  • Data Services
  • Backhaul Services
  • Voice Services
  • Access Services
  • Infra Services
  • Beyond Connectivity
Group Digital Centre
IT & Network Technology (IT&NT)

TM's Value Creation Model

We believe our strategy will result in sustainable and long-term value for all stakeholders, as well as to deliver on our vision and mission.

To Make Life Easier, for a Better Malaysia

TM’s Value Creation Model is designed to create sustainable and long-term value for all stakeholders to deliver on our vision

Key Input
Human Capital
> 24,000 Warga TM
Intellectual Capital
  • Established telecommunication brand presence in Malaysia
  • >2.5 million homes
  • >11,000 Enterprise and Public Sector customers
  • >500 Domestic and International carriers and service providers
Natural Capital
ISO 14001 certification to manage environmental footprint
Social & Relationship Capital
  • >7,000 active suppliers
  • >85.0% of suppliers consisting of SMEs
  • >RM500.0 million disbursed through YTM since 1994
  • Three (3) MMU campuses in Melaka, Cyberjaya and Johor
Financial Capital
  • RM23.70 billion worth of total assets
  • RM7.50 billion in total shareholders' equity
Manufactured Capital
  • >540,000 km of fibre optic cables
  • >20 submarin cables systems
  • >3,400 LTE sites
  • Investment in digital infrastructure
  • 28 International Point-of-Presence (PoP) connecting Malaysia to the world
  • 12 data centres
OVERALL STRATEGIC FRAMEWORK
SUSTAINABLE ORGANISATION AND VALUE CREATION
SHAREHOLDERS
Economic
Environment
Society
Enabling the Digital Nation
Digital Society
Digital Economy
Digital Government
Powered by TM’s Converged Connectivity
CUSTOMER CENTRIC ORGANISATION
Business Operations
Consumers & SMEs
Private & Public Sector
Global & Wholesale
Beyond BaU
Education Group
  • MMU
  • YTM
Corporate Responsibility
PRINCIPLES OF TM: KRISTAL VALUES
Total Commitment to Customers
Uncompromising Integrity
Respect & Care
Key Output
Human Capital
  • >23,000 future-skill employees
  • 70.0% decrease in waiting time for walk-in customers
  • 95.0% of complaint resolution within targeted time
Intellectual Capital
  • >73 customer satisfaction measure, above global telco average of 66
Natural Capital
  • 1.3% reduction in carbon footprint (operational)
  • 1.4% reduction in energy consumption
Social & Relationship Capital
  • >RM3.70 billion contributed to local suppliers
  • Contributes to Malaysia’s GDP growth through SME empowerment
  • >31,000 students, teachers and community members benefitted from TM educational programmes since 2003
  • >15,000 YTM scholars benefited, to date
  • >56,000 graduates produced by MMU for the Malaysian workforce, to date
PRINCIPLES CAPITAL
  • RM11.82 billion Operating Revenue
  • RM75.1 million Total Interim Cash Dividend Payout
MANUFACTURED CAPITAL
  • >77.0% unifi Mobile population coverage
  • 90.0% population of converged network coverage

Who Keeps Us in Business: Stakeholder Management

TM places the utmost value on all the lives we touch through our business and operations, and is always looking for ways to further enrich them.

We understand and appreciate the important roles that each stakeholder plays for TM’s success as the leading telecommunications company in Malaysia. We value not just our customers, employees and shareholders, but also our suppliers, regulators and the community at large. Throughout the years, we have actively engaged with various stakeholder groups to provide updates on our organisation and, more importantly, to obtain feedback on their expectations and how to enhance our business, processes and operations.

We are constantly engaging with our numerous stakeholders through various platforms, which include surveys, call centres, online channels and face-to-face discussions. We also interact with local communities through numerous initiatives that help empower marginalised and underdeveloped groups.

This year, in addition to our regular methods of engaging with our stakeholders, we have conducted a special stakeholder engagement exercise that personally interacts with representatives from various stakeholder groups via a formal platform. This was conducted through a third-party organisation to ensure that the engagement was held under neutral circumstances, to capture objective views on TM’s performance and potential material issues without any bias.

The most crucial stakeholders were prioritised according to two (2) main factors:

  1. Their influence on our business, operations and reputation;
  2. The degree or level of interest or dependence on TM for business, livelihood or simply, solutions.

Three (3) Focus Group Workshops were held for our customers, employees and suppliers, while one-on-one interviews were done with the regulators.

We have analysed their feedback to determine the key material topics and themes, which will be the focus of all our future business and sustainability strategies.

For more details on our stakeholder engagement exercises, kindly refer to our Sustainability Report 2018 at tm.com.my/annualreport/sustainability.

Managing Our Material Issues

Material topics are matters that are significant to both our stakeholders and to our organisation. If these matters are not systematically managed, they could be detrimental to our long-term business performance and success. Therefore, it is important to accurately identify and prioritise these material topics by effectively analysing their current and future impact on our business and people.

Based on the feedback received from the special stakeholder engagement exercise, we have identified twenty-two material topics, including ten (10) new topics over the last year:

Industry Thought & Leadership
Green Awareness/ Education
Training & Development
Employee Volunteerism
Work-Life Balance
Compensation & Remuneration
Corporate Culture
Regulatory Compliance
Grievance Mechanism
Engagement

For clarity and better context/coverage of the material issues, the following topics from last year have been renamed, recategorised and/or regrouped:

Previous Material Topics Revised Material Topics
  • Product Quality
  • Innovation
Product Innovation
  • Customer Satisfaction
Service Quality
  • Supply Chain Management
Responsible Supply Chain
  • Consumer Data & Privacy
  • Online Safety
Consumer Data & Privacy
  • Inclusivity
Diversity & Inclusion
  • Supporting Communities
Community Welfare & Well-Being
  • Human Rights
Fair & Equitable Policies

Materiality Methodology: We collected in-depth inputs from participants (qualitative data) as well as the re-ranking of 2017 material topics (quantitative data) from the stakeholder engagement assessment. The findings were juxtaposed with internal sources of data (quantitative data) to clearly determine topics that are considered material to our stakeholders. The Management Committee (MC) then assigned scores to the top material topics identified from the assessment according to their importance to the business. The material topics were ranked according to a 5-Point Rating Scale (1 = Not Important; 2 = Somewhat Important; 3 = Not Sure; 4 = Important; 5 = Most Important). The MC also established weightages to various stakeholder groups to determine the magnitude of their impact on our operations. Finally, we compared and analysed the material topics that are important to both stakeholders and the MC to determine the final 22 material topics, which are then presented on a materiality matrix.

The identified material topics and the materiality matrix are shown below, which have been approved by the Board (via Chairman) and AGCEO.

Material Topics
Significance to Stakeholders and TM’s EES Impact
Economic
Environmental
Governance
Economic
  • M1 Product Innovation
  • M2 Service Quality
  • M3 Responsible Supply Chain
  • M4 Industry Thought & Leadership
  • M5 Consumer Health & Safety
  • M6 Consumer Data & Privacy
Environmental
  • M7 Climate Change & Energy Management
  • M8 Resource Use & Waste
  • M9 Green Awareness & Education
  • M10 Talent Retention & Attraction
  • M11 Training & Development
  • M12 Employee Health & Safety
  • M13 Employee Volunteerism
  • M14 Diversity & Inclusion
  • M15 Work-Life Balance
  • M16 Community Welfare & Well-Being
  • M17 Compensation & Remuneration
Governance
  • M18 Corporate Culture
  • M19 Fair & Equitable Policies
  • M20 Regulatory Compliance
  • M21 Grievance Mechanism
  • M22 Engagement