Our Progress So Far

Welcome to Telekom Malaysia Berhad’s (TM) Integrated Annual Report (IAR) 2022!

Built on a strong foundation and heritage, TM paves its next era as a human-centred technology company. Our purpose and journey is to shape a Digital Malaysia that empowers communities, businesses and Government has come a long way, yet it is far from over; in fact, it has just begun.

We harness technology to create a better tomorrow for all. As Future Shapers, we connect our stakeholders to opportunities by enabling them with innovative solutions that help propel them closer to their next goals. Throughout this annual report, we feature imageries that reflect our commitment.

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Message From
Our Chairman

2022 has been a very good year for TM. We have achieved positive performance in multiple aspects of our business, with strong financial growth, infrastructure modernisation and expansion and notable progress in our journey.

With a clear understanding that the value of technology is only as good as the people it serves, we have dedicated ourselves to putting people at the centre of everything that we do.

Tan Sri Mohammed Azlan Hashim

Chairman

GROUP REVENUE

RM12,118.1

million

GROUP PATAMI

RM1,143.3

million

EBIT

RM2,090.2

million

TOTAL DIVIDEND PAYOUT

RM627.5

million

Message From GCEO

2022 was the second year of our transformation programme that started in 2021 and we are delighted with the momentous progress we’ve seen for the year.

We maintained a positive growth momentum in profitability for the year and accelerated our nation building efforts.

Dato’ Imri Mokhtar

Managing Director /
Group Chief Executive Officer

3.5 million

customers

6,000

enterprises

163

Malaysian
service providers

OUR NETWORK

>690,000km

domestic cables

OUR NETWORK

>340,000km

submarine cables

OUR PEOPLE

19,499

Warga TM

GCFO'S REVIEW

2022 has been a significant financial year for the Group.

We achieved our higher revised revenue guidance with strong profitability growth, driven by continuous customer growth for all business segments. Our performance is due in part to our ability in adapting to the changing business landscape and taking advantage of new opportunities.

Additionally, we have continued to invest in our operations, improving efficiency and reducing costs wherever possible.

Razidan Ghazalli

Group Chief Financial Officer

FINANCIAL
STRATEGY

Revenue Growth

Strengthen our core and continue to invest in growth opportunities

Cost Optimisation

Implement cost optimisation programmes across our operations to improve cost efficiency

Debt & Capital Management

Identify opportunities to improve our credit strength, liquidity and solvency

What We Do

Our organisation is at a pivotal moment, as we gear up for the next phase of our evolution towards becoming a human-centred TechCo. We do this by shaping a Digital Malaysia through technology that empowers communities, businesses and Government.

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Our Key Focus 2023

Consumer & SMEs (B2C)
Enterprises & Public Sector (B2B)
Global (C2C)

Sustainability Pillars

TM’s Sustainability Vision:
To Make Life Easier, Towards a Sustainable
Tomorrow

BUILDING A DIGITAL MALAYSIA

Nation Building:

Expand our network and bridge the connectivity divide to catalyse Malaysia’s economic, social and environmental progress

PROTECTING THE PLANET

Environmental Footprint:

Progressively manage our impact on the environment through resource optimisation and reduction in operational carbon emissions

PUTTING PEOPLE FIRST

Responsible Supply Chain:

Source responsibly to manage the impact of our value chain; Respect labour standards; Grow and empower domestic suppliers

STRENGTHENING OUR INTEGRITY

Uncompromising Integrity:

Zero-tolerance for unethical business conduct and corruption

Stakeholder
Priorities

People remain at the core of our value creation story. By closely listening to them, each decision we make is shaped by how we can improve the lives of our stakeholders and society today and into the future.

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Employees

WHY THEY ARE IMPORTANT

We rely on the skills and knowledge of Warga TM to drive our aspirations forward. Their hard work and dedication have made our digital and nation building objectives possible. At the same time, we are responsible for providing employees with livelihoods and fulfilling career paths.

Customers

WHY THEY ARE IMPORTANT

The support of our customers is critical to our business sustainability. Their trust in our products and services directly contributes to our long-term performance and enables us to achieve our nation building aspirations. At the same time, we empower our customers with essential services to thrive in a Digital Malaysia.

Shareholders & Investment Communities

WHY THEY ARE IMPORTANT

Our financial strength is entrusted by our shareholders and investors, who provide the Group with continued access to financial capital to achieve our nation building aspirations. In return, we are able to generate optimum financial returns for them.

Government & Regulators

WHY THEY ARE IMPORTANT

As a GLC, we need to maintain a close working relationship with the Government and Regulators, based on transparency and trust as the foundation of collaboration. We support their programmes and initiatives that propel the country forward, as well as secure commercial objectives that benefit both our business and the nation.

Suppliers

WHY THEY ARE IMPORTANT

Our operational resilience, sustainability and growth depend on the products and services delivered by our network of suppliers. At the same time, we empower businesses across our value chain with financial and non-financial contributions that promote their growth and success.

Business Partners

WHY THEY ARE IMPORTANT

We leverage the technology and resources of our business partners to complement our products and solutions offered to our customers, while they look to TM to deliver our services and equipment on time and at optimum costs.

Media

WHY THEY ARE IMPORTANT

The media is an information bridge between TM and its various stakeholders, including the general public. It is important to maintain good media relations to shape a positive reputation that aligns with our purpose and gain the support of our other stakeholders.

Communities

WHY THEY ARE IMPORTANT

Communities and provide invaluable support to our strategic and nation building aspirations. By fostering strong relationships with local communities, we create trust and confidence in our ability to enable and improve socio-economy standards that benefit everyone.

Unions

WHY THEY ARE IMPORTANT

Unions help improve communication and promote a more engaged workforce. Unions also help address and resolve workplace conflicts before they escalate, thus improving industrial harmony.

Material
Matters

In 2022, we revisited our materiality determination process to understand the concerns and insights of our stakeholders, to develop our strategies and future focus areas. This process is conducted every three (3) years to ensure our material matters are timely and relevant.

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MATERIALITY PROCESS:
Stakeholder Prioritisation

Identify and establish weightage to various stakeholders groups. This determines their level of impact on our business and strategic objectives.

External Engagements

The stakeholders engaged in 2022 include Customers, Employees, Suppliers, Regulators, Investors & Shareholders, and Community Members.

Two (2) types of feedback were collected during the external engagements:

  1. 1. Quantitative Feedback : a ranking survey was shared to prioritise the material matters
  2. 2. Qualitative Feedback : in-depth focus group discussions or interviews were conducted to capture more insight so that we can develop specific programmes and policies

Internal Engagements

Compile and analyse data from internal stakeholder engagement, such as customer complaints and employee surveys. This allows us to compare the external engagement findings with internal feedback for more robust results.

Validation & Approval

Present the final findings to the Board Risk Committee (BRC) and GCEO, with final approval from the Board of Directors

Discussion & Deliberation

Share the preliminary findings to the Management team, who then ranked the topics based on their importance to TM’s business. The ranking by stakeholders and TM Management are then juxtaposed to arrive at the final material matters and materiality matrix.

Market
Trends

Our ability to deliver value and enable a Digital Malaysia is influenced by external factors, such as emerging technologies, market trends, economic conditions and new regulatory policies. Therefore, we actively monitor this dynamic landscape and stay ahead of any developments.

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THE ECONOMY

THE ICT SECTOR

Connectivity

DIGITALISATION

Cloud

Smart Services

Data analytics

Sustainability

Risks &
Mitigation

As we progress toward becoming a human-centred TechCo, we will continue to face various challenges in our journey. By using the right measures within our ERM Framework to mitigate these risks, we can discover new opportunities to unlock greater value for our business and stakeholders.

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STRATEGIC

Operational

Financial

Technology/System

Sustainability

VISION & MISSION

OUR CAPITALS

DELIVER CUSTOMER OUTCOMES

THROUGH BUSINESS ACTIVITIES THAT CREATE

VALUE FOR OUR STAKEHOLDERS

Inputs

Financial

Manufactured

Natural

Social & Relationship

Intellectual

Human

OUR BUSINESS

OUR PURPOSE

OUR CUSTOMERS

OUR PEOPLE: WARGA TM

OUTCOMES

FINANCIAL

STAKEHOLDERS

Shareholders & Investment

Government & Regulator

MANUFACTURED

Shareholders & Investment

Customers

NATURAL

Shareholders & Investment

Communities

Media

SOCIAL & RELATIONSHIP

Suppliers

Communities

Media

INTELLECTUAL

Shareholders & Investment

Government & Regulator

Customers

HUMAN

Employees

Our
Capitals

We adopt a comprehensive approach to creating sustainable value for our stakeholders. We utilise six (6) types of capitals, each interrelated and with a complex interplay between them. As part of our sustainability approach, we understand that sometimes we need to make short-term financial trade-offs to achieve meaningful, long-term gains. This guides our strategic decisions as we strive to create sustainable value that benefits all our stakeholders.

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Human Capital

Our dedicated and skilled Warga TM acts as our execution engine. We invest in our employees so they can drive our strategic purpose forward.

FINANCIAL CAPITAL

Our income and earnings are used to operate and grow the business. We channelled our financial funds to pay relevant stakeholders, finance other types of capitals and propel our Digital Malaysia aspirations.

INTELLECTUAL CAPITAL

We have remained at the forefront of every technological advancement in the country. We embrace new technologies and digital solutions that strengthen our value proposition and competitive edge.

NATURAL CAPITAL

Our operations rely on a range of resources, including energy, water, radio spectrum and other natural resources. As we progress on our sustainability journey, we strive to continuously reduce the impact of our activities on the environment.

SOCIAL & RELATIONSHIP CAPITAL

Our strong and meaningful stakeholder relationships allow us to meet our nation building agenda. We take pride in creating bonds that build a resilient and thriving society

MANUFACTURED CAPITAL

Our vast infrastructure network, data centres and base stations are absolutely essential in connecting Malaysians nationwide. We also have retail outlets, office buildings and other physical assets that play important roles in our growth and operations.

Value
Creation
Strategy

As the Future Shapers of a Digital Malaysia, we have a mission of humanising technology and making it accessible to all Malaysians in a sustainable manner.

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