24 Mar 2022
TM data centres now powered by clean energy
TM secures Green Electricity Tariff (GET) from TNB for its KL, Cyberjaya and Johor Bahru data centres, adding to their Green Building Index (GBI) and Leadership in Energy and Environmental Design (LEED) certifications
Customers of data centre services provided by Telekom Malaysia Berhad (TM) will now be able to accelerate their sustainability journey, with the Group recently securing Green Electricity Tariff (GET) from Tenaga Nasional Berhad (TNB) for three (3) of its data centres.
The data centres comprise the Klang Valley Core Data Centre (KVDC) in Cyberjaya, Iskandar Puteri Core Data Centre (IPDC) in Johor Bahru and KL City Data Centre (CTDC) in Brickfields. This adoption of green energy supply complements the data centres’ Green Building Index (GBI) and Leadership in Energy and Environmental Design (LEED) certifications obtained previously for their efficient energy use, further cementing TM’s commitment towards reducing carbon emission and impact on the environment.
GET is one of the Government’s initiatives to provide Malaysian consumers the option to use green electricity coming from renewable energy supply as the country moves towards achieving net-zero Greenhouse Gas (GHG) emissions by the year 2050. GET subscribers are supplied with electricity coming from solar and hydro generators instead of fossil-fuel based.
Imri Mokhtar, Group Chief Executive Officer, TM said, “The largest source of carbon emission worldwide is from electricity generation as well as heat management, and data centres use significant amounts of power to run the IT and Cloud workloads. This indirectly contributes to high level of carbon emission as the electricity typically comes from fossil fuel-based energy supply. With this clean electricity, we will substantially reduce the impact our data centres have on the environment, while continuing to enable our customers, from large enterprises, the public sector or global hyperscalers, to enjoy the convenience, stability and security of our data centre services.
“For our data centre customers who are conscious of the green efforts in their business operations, GET fulfills this need, enabling them to deliver their products and services in a greener manner to their end customers. This green initiative by TM will provide a total energy saving of 27 million kWh per year, which is equivalent to a total carbon emission of 19,134 metric tons,” he added. “To put that into perspective, this is comparable to the amount of electricity used at 3,476 homes for a year, or 9.7 million litres of petrol consumed by the average automobile.”
The adoption of GET is the latest among the Group’s various initiatives under the Environmental pillar of its Environmental, Social and Governance (ESG) commitment. Mindful of its responsibilities towards environment conservation and climate impact, the Group has included sustainability factors in all its operations in addition to running nature preservation activities via its foundation, Yayasan TM.
In promoting sustainability, TM remains steadfast in its ESG commitments. For Environmental, the Group will progressively cut down emissions by 30% in 2024, 45% by 2030 and achieve Net-Zero emission by 2050. On Social, TM is set to provide access to high-speed internet to at least 70% of premises nationwide. The Group promotes gender diversity in decision-making roles by having a minimum of 30% women on its Board of Directors and in Management. Under Governance, TM will continue working with the Malaysian Anti-Corruption Commission (MACC) to uphold its zero-tolerance to any form of corruption and maintain the highest standards of corporate governance.
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Op Selamat to ensure a safer Raya celebration for all
TM remains committed to work closely with enforcement agencies in ensuring the welfare and well-being of the community Telekom Malaysia Berhad (TM) and Polis DiRaja Malaysia (PDRM) today launched Op Selamat 18/2022 to promote a safer and joyous celebration this upcoming Hari Raya for all Malaysians nationwide. Entering into its 18th edition, this year's campaign is aptly themed "Rumah Selamat, Selamat Sampai ke Destinasi" (Safe Home, Safe Journey), with the aim of increasing public awareness on road safety and home security during festivities. Op Selamat will be running for 10 days, from 29 April until 8 May 2022. This marks the 23rd collaboration between TM and PDRM on this campaign, the last being in 2019 before the pandemic hit. This is part of the long-standing strategic partnership that TM has established with PDRM, including the MERS999 emergency hotline, the anti-telecommunications cable theft efforts, and the Secured Mobile Services platform used for enforcement operations. The campaign was launched at Menara TM by Datuk Razarudin Husain, the Deputy Inspector General of Police. He also flagged off the 'Traffic Monitoring Team' and a convoy of motorcyclists and cars, symbolically highlighting the campaign's message of road and home safety. Also present at the event were CP Datuk Wira Mat Kasim Karim, Director of Traffic Investigation and Enforcement Department (JSPT); CP Datuk Aidi Ismail, Director of Crime Prevention and Community Safety Department (JPJKK); Tan Sri Mohammed Azlan Hashim, Chairman of TM; Imri Mokhtar, Group Chief Executive Officer of TM; senior management of TM Group, police officers of various ranks as well as officers from various government agencies such as Jabatan Bomba dan Penyelamat Malaysia, Angkatan Pertahanan Awam Malaysia, Kementerian Kesihatan Malaysia (KKM), Jabatan Pengangkutan Jalan Malaysia (JPJ) and Non-Governmental Organisations (NGO). In his opening speech, Tan Sri Mohammed Azlan said, "TM is committed and always ready to work hand-in-hand with PDRM and other law enforcement agencies in ensuring the security and well-being of the community. This year, once again we continue our long-standing collaboration with PDRM on this noble effort. This campaign reflects our unwavering support towards the Government's initiatives to reduce road mishaps and improve home safety during festive seasons. "The safety of road users and their homes are of utmost importance during festivities. This is the key message we want to spread to the public, and we urge everyone to stay alert on the road and vigilant at home," he added. For this year's campaign, TM is contributing various necessities for the 15 Op Selamat operation centres nationwide, including campaign advocacy and materials such as leaflets and stickers that will be distributed to road users.
TM turns in solid 1Q2021 performance; strong start to transformation programme
The Group posted revenue of RM2.81 billion, 9.9% higher from RM2.56 billion in 1Q2020. A Solid 1Q2021 Performance Telekom Malaysia Berhad (TM) today reported its financial results for the first quarter ended 31 March 2021. The Group's revenue increased by 9.9% to RM2.81 billion compared to RM2.56 billion in the same quarter last year with an increase in revenue across all business lines – unifi, TM ONE and TM WHOLESALE. Ongoing cost improvement initiatives continued to show results with total operating cost ratios (% cost to revenue) improving from 88.1% last year to 79.7%, supporting both revenue growth whilst optimising cost efficiency across direct costs, manpower, other operating costs and depreciation and amortisation. Group EBIT for 1Q2021 rose by 80.8% YoY from RM326.1 million in 1Q2020 to RM589.7 million, on the back of higher revenue and better operating costs efficiency. This subsequently led to a strong 113.4% YoY growth in Group PATAMI from RM152.5 million last year to RM325.5 million. In 1Q2021, the Company invested 8.8% of revenue in capex amounting to RM247.0 million as it continued to modernise its network and technology platforms towards delivering current and future solutions for customers. Of the amount invested, 69% was for network access including JENDELA (fibre broadband expansion), 12% for core network, and the balance 19% for support systems. TM expects to meet the 2021 market guidance announced in February with revenue growth to be flat or single digit growth, EBIT to be more than RM1.6 billion and CAPEX guidance to be between 14% to 18% of revenue. 1Q2021 Business Highlights: A Strong Start to the New TM Transformation Programme The 'New TM' Transformation Programme (2021-2023), anchored on 40+ Value Programmes focusing on customer experience, revenue, cost efficiency and a future proof organisation, has seen a strong start with quarterly growth across all lines of business and improved operations. unifi maintains its strong momentum and convergence leadership with 11.9% YoY growth in fixed broadband customers to 2.44 million, with the highest ever quarterly fixed broadband customers net additions of 110k, driven by growth of unifi customer base. Whilst the MCO since 2020 has increased demand for fixed broadband, unifi has successfully converted this demand with its compelling unifi convergence proposition under the #unifiyourworld campaign, providing the best customer value for broadband, mobile and content via unifi Plus Box. This growth was also supported by the higher number of ports deployed and wider fiber network roll-out under the JENDELA programme, which TM surpassed its 1Q targets achieving 141% of its commitment. TM is also expanding the pool of network contractors to increase the capacity of its fiber expansion programme in the coming quarters. unifi also focused on continuously improving customer experience and accelerated its Streamyx migration programme in Q1 2021 to enable more customers enjoy higher speed broadband. WiFi optimisation is also an important part of getting the best internet experience, hence unifi also continues to promote the take up of Mesh WiFi to its new and existing customers. Meanwhile, its IT systems are also undergoing enhancements to provide better customer experience and cost optimisation via simplification and consolidation of platforms. Notably, unifi rolled out a new order management system that reduces order processing time by more than 60%, to improve customer experience across its sales touchpoints. TM ONE continues to enable the digital transformation journey of enterprise and public sector customers with a comprehensive suite of connectivity, data centre, Cloud, cybersecurity and smart solutions. After cautious spending in 2020, customers are now accelerating their digitalisation, and this has translated into new sales and contract renewals to provide comprehensive digital solutions, especially in key verticals such as oil and gas, the banking and financial services industry (BFSI) as well as from higher broadcast, ICT and customer projects. There is also greater traction seen for Cloud services from the Enterprise segment; whilst discussions are ongoing to support public sector data migration, as the Government's sole local Cloud Service Provider (CSP) under the MyDIGITAL blueprint. TM WHOLESALE is the preferred network infrastructure provider supporting the technology industry and is positioning Malaysia as a digital hub with strong demand from domestic and international telco and technology operators; including hyperscalers. On the home front, TM as the leading infrastructure partner for High Speed Broadband wholesale services, leveraged its superior network nationwide to support the industry's broadband growth. It is also the primary mobile backhaul infrastructure provider for the industry, which saw growth in coverage and capacity through dynamic offerings of these services. TM also recorded growth in terms of its Wholesale Data Services. Towards establishing Malaysia as an ASEAN digital hub, TM strengthened its partnership ecosystem with international carriers and hyperscalers registering higher revenue for International Data Services as compared to last year. TM expanded its portfolio of data centre customers with more major Asian and US hyperscalers co-locating at the nation's only Tier III twin core data centres at Iskandar Puteri (IPDC) and Klang Valley (KVDC). Its wholesale Content Delivery Network (CDN) services also expanded its digital media delivery network ecosystem with more new customers in 1Q2021. TM remains committed to sustainable growth, with continued emphasis on Environmental, Social and Governance (ESG), maintaining its strong track record as one of the 75 Bursa companies on the FTSE4Good Bursa Malaysia Index, with the full rating of 4/4. Environment: TM complies with the Environmental Quality Act 1974, and has reduced its annual carbon emissions by 13%; integrating sustainable practices in all areas of operations. Social: TM ensures the safety and health of customers and Warga TM with special working arrangements implemented and enhanced Standard Operating Procedures (SOPs) towards business and customer service continuity. TM also supports the nation and communities in need through connectivity initiatives such as Jaringan Prihatin, CERDIK, MYBAIKHATI and other humanitarian aid. Governance: Committed to uncompromising integrity, TM continuously assesses the Group's corruption risk and ensures its corruption mitigation practices are independently certified. Imri Mokhtar, Managing Director & Group Chief Executive Officer commented: "We began 2021 with a positive momentum and a strong start to our 'New TM' 2021-2023 Transformation Programme. We are pleased to report a solid year-on-year performance despite these unprecedented times. We delivered good growth with our revenue up 9.9% YoY to RM2.81 billion, contributed by strong demand from our unifi, TM ONE and TM WHOLESALE customers. Coupled with our continuous cost efficiency initiatives, EBIT significantly improved 80.8% YoY to RM589.7 million and PATAMI doubled to RM325.5 million as compared to the first quarter of 2020. Under the 40+ Value Programmes, TM is reshaping our workforce into a stronger execution engine, embracing a more agile work culture with future-ready skills; focused on growing with our customers towards a more digital society, businesses, public sector services and technology industry. TM reiterates our leading role in accelerating Digital Malaysia through digital connectivity, digital infrastructure and a digital workforce. As an essential enabler, we are ready to play a leading role in the execution of both, the JENDELA implementation plan and the realisation of the Malaysia Digital Economy Blueprint (MyDIGITAL); leveraging on our comprehensive connectivity, digital infrastructure and innovative solutions. We are also committed towards sustainable growth, with increased emphasis on ESG by our Board and management. We remain focused on our ESG sustainability journey. I am pleased to update that we maintained our track record as one of the 75 Bursa companies on the FTSE4Good Bursa Malaysia Index, with a full rating of 4/4. With this encouraging set of overall results, we are on track to meet our 2021 market guidance and look forward to delivering greater customer experience and shareholder value with our New TM Transformation Programme."
Consolidation of TM’s business in Malaysia to strengthen fixed-mobile convergence leadership and improve operational efficiency
Telekom Malaysia Berhad ("TM" or "the Group") today announced an internal reorganisation which involves the transfer of its business in Malaysia to a single operating entity named TM Technology Services Sdn Bhd ("TM Tech"). The internal reorganisation is anticipated to complete by 31 December 2023. The reorganisation – which includes Unifi, TM One and TM Wholesale, among others – marks the next phase of the Group's transformation to be the enabler of a digital Malaysia, and to further improve its operational efficiencies, streamline processes and simplify customer touchpoints to provide a more seamless customer experience. Incorporating its diverse businesses under TM Tech will also reinforce TM's Fixed-Mobile Convergence leadership, offering integrated fixed broadband, mobile services, data services, digital content and innovative solutions to communities, businesses and the Government. Group CEO, Imri Mokhtar said, "As digital lifestyles, increasing competition and stakeholder expectations reshape the industry, consolidating these businesses into one operating entity will allow us to serve our diverse customer segments better and deliver their needs more quickly. "Consolidating our suite of connectivity and digital offerings will also enable us to easily tap into the right combination of solutions to meet the unique needs of individual lifestyles and businesses." "Furthermore, this reorganisation aligns us to industry best practices and will improve TM's competitive edge among Malaysian and international Telcos and digital players, as we continue to pursue our aspiration of becoming a leading human-centred TechCo," he added. Under TM Tech, consumers will continue to enjoy the fastest and widest all-in-one connectivity and digital content. Enterprises and the public sector will also benefit from TM's digital and smart solutions, including cloud and data centres, cybersecurity and smart industry offerings. The operating entity will also continue to champion TM's nation-building efforts in expanding and modernising the country's fibre network, data centres and submarine cable systems. TM Tech will be led by TM's existing senior management team and will bring together its diverse talents under a single company, encouraging greater agility and cross-functional collaboration to improve service quality. Imri explained, "Our Warga TM will remain the execution engine for TM and the country's digital transformation. While our workforce will be realigned to this single operating entity, employee functions, entitlements and benefits will remain unchanged." Similarly, all of TM's partnerships, vendor and service agreements will remain in effect. Telekom Malaysia Berhad will now serve as an investment holding company for this operating entity, with all other subsidiaries within the Group to remain status quo. "Beyond TM's own growth, this reorganisation strengthens our role in advancing the country's digital transformation and to serve our customers in a more cohesive manner. While it marks a new milestone in our continuous transformation, we remain anchored to our purpose of enabling digital inclusion, opportunities and progress for all," Imri concluded.
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