29 Dec 2022
TM's decision to exit menara KL concession
Telekom Malaysia Berhad ("TM" or "the Group") wishes to clarify that Menara KL ("MKL" or "Tower") is owned by the Government while the operations and maintenance of the tower is granted under a concession. TM via its wholly owned subsidiary, Menara Kuala Lumpur Sdn. Bhd. (MKLSB) had undertaken the concession since 1996.
As part of its business transformation programme, TM is focusing its efforts and resources on strengthening its core business of telecommunications and technology. After due consideration on the change in the business nature of MKL, from telecommunications services to tourism and hospitality, TM has decided in October 2021 not to renew the MKL concession and informed the Government accordingly.
Subsequently in 2022, the selection process of the new Concessionaire was then taken up by the Government upon which TM was informed on the appointed company to take over the shares of MKLSB and the MKL concession. MKLSB shall continue to operate the concession and ensure the continuity of MKL operations for the Malaysian public, including international visitors.
Employees will remain employed with MKLSB under the new Concessionaire for a minimum period of 3 years. This is to ensure their welfare is protected in this transition.
In TM’s 3Q 2022 financial announcement to Bursa Malaysia, a reference was made in the subsequent changes to shareholding in MKLSB.
TM practices good governance and transparency in our business undertakings to preserve the interest of our customers and stakeholders. TM will provide our full cooperation and disclosures as required by the authorities.
Building on our commitment to enable a Digital Malaysia, TM will continue to deliver the best telco and technology services for the community, businesses, Government and industry.
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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."
TM ONE LAUNCHES ITS INNOVATION LAB AND ENTERPRISE 5G LAB TO EMPOWER AND DRIVE DIGITALISATION IN THE ENTERPRISE AND GOVERNMENT SECTOR
CYBERJAYA, 20 FEBRUARY 2024 – TM One is proud to announce the launch of its Innovation Lab and Enterprise 5G Lab, designed to accelerate the realisation of ground-breaking digital services and solutions. These initiatives cater to the unique needs of Malaysia’s large enterprises and Government sector, fostering innovation and empowering digital growth opportunities for TM, its valued customers, partners and society. Officiated by Minister of Digital, YB Gobind Singh Deo, both labs will serve as hubs to bring together the latest technologies, digital leaders and inspiring ideas. It provides a secure, collaborative space where TM, its customers and partners can turn ideas into tailor-made solutions, creating opportunities in today’s rapidly evolving digital landscape. Amar Huzaimi Md Deris, TM’s Group CEO, said, “We are excited to launch our new Innovation Lab and Enterprise 5G Lab by TM One. This is a significant milestone of our commitment to drive innovation and deliver value to our customers, partners and the nation. Through these initiatives, we aim to foster greater industry collaboration, and propel key areas such as Enterprise 5G and Smart Services with AI to help organisations thrive in the digital age. “The launch of the Innovation Lab and Enterprise 5G Lab underscores TM's ongoing commitment to foster innovation and customer-centricity. It strengthens our role as a trusted partner for organisations seeking to harness the power of digital technologies, and drive growth and transformation within their businesses and wider communities,” he shared. Located at the state-of-the-art TM Digital Academy in Multimedia University, the Labs are the next in TM One’s continuous efforts to build collaborative ecosystems to drive equitable digital progress. Complementing this initiative is TM One’s 5G Sphere Partnership Programme, with partnerships with over 50 local and global entities to support the co-creation of new innovations. TM One’s Sandbox further provides a secure operational test-bed environment for these partners and customers to develop customised solutions. Both Labs enable: 1. Immersive Engagement: Beyond showcases, organisations will experience first-hand how TM One innovates solutions and delivers expertise for their specific needs. By experiencing potential solutions in action, customers can better grasp the implications and advantages to their own operations. 2. Dialogue & Knowledge Sharing: Having initial prototypes will encourage a deeper exchange of insights by various ecosystem players including TM One’s 5G Sphere partners, and other industry experts. 3. Accelerated Decision-Making: Live use-cases and knowledge sharing help expedite decision-making processes, empowering customers to make informed choices confidently. The Innovation Lab helps decision-makers address hurdles or uncertainties they may have about new technologies or services. 4. Tailored Relationships: Customers will receive a personalised, tailored experience, focusing on an organisation’s unique digital and business objectives, and how TM One can contribute to their success. Customers visiting the Innovation Lab and Enterprise 5G Lab will explore a diverse array of opportunities including the future of connectivity and digitalisation, as well as how technology will reshape industries and elevate the digital business landscape into a realm of boundless possibilities. For a first look at the TM One Innovation Lab and Enterprise 5G Lab, visit https://youtu.be/kg6CA16Khqk
TM shines the spotlight on an unsung hero this Hari Kebangsaan through interactive 360º wayang kulit performance
Most of us are familiar with the many great gentlemen heroes who fought for the nation’s Independence, such as Tunku Abdul Rahman and Dato' Onn Jaafar. This year, however, Telekom Malaysia Berhad (TM) is shining the spotlight on one of the women “Tokoh Kemerdekaan”, Tan Sri Hajah Zainon Binti Sulaiman, also known as Ibu Zain, who played a pivotal role in inspiring Malaysians to unite and stand up as one. Her inspiring yet lesser-known story was captured in a Hari Kebangsaan and Hari Malaysia film titled “Ibu, Kisah Seorang Tokoh Kemerdekaan”, to celebrate the spirit of Malaysia’s independence and as an example of strength through unity. Aptly and equally inspiring too is that the film is narrated by her own daughter, Fadzilah Amin (Tok Lah), one of the most respected lecturers and educators in the country. The film is part of TM‘s Mengukir Malaysia initiative to celebrate and preserve our local culture through innovative technologies that enhances and elevates its delivery and enables Malaysians of all ages to better appreciate the richness of Malaysia’s heritage. Aimed at reconnecting people with the nation’s history and preserving the country’s rich heritage, TM brought to life the art of Wayang Kulit (shadow play), one of the earliest forms of animation in Southeast Asia, to tell the story of Ibu Zain. The project was born from one premise: ‘What if we could shine a light on a forgotten Malaysia hero through an art form that is also fading?’ Shanti Jusnita Johari, Chief Marketing Officer, TM, said, “Through our Mengukir Malaysia initiative, we aspire to leverage technologies that not only changes the way we live, work and play, but also enhances our perspectives and ideas, drawing from our local culture and history to remind us about what’s made us a great nation. “This Hari Kebangsaan and Hari Malaysia, we wanted to remember and celebrate Malaysia’s many unsung heroes, such as Ibu Zain, who made our country great. We hope that through this short film, people will be encouraged to learn more about this historical icon as we commemorate her legacy via Wayang Kulit, one of the first forms of storytelling by our ancestors which we must also preserve.” In ensuring that the film stays true to the ancient art of Wayang Kulit, TM found the perfect partner in Tintoy Chuo and his Tok Dalang from Fusion Wayang Kulit, who are renowned for their unique take on the art of Wayang Kulit. Their efforts to bring Wayang Kulit into the digital 21st century has garnered international attention, putting Malaysian Wayang Kulit on the world map. For this collaboration, TM and Tintoy Chuo weaved in virtual reality technology, bringing the Wayang Kulit experience to school children from across the nation’s 13 States. Sharing Ibu Zain’s story in a way that harmonised both heritage and digitalisation was one of the messages TM aimed to highlight about Malaysia’s unique make up and to celebrate both its history and aspirations during this Hari Kebangsaan. On top of the Hari Kebangsaan film, audiences can also visit www.tm.com.my/mengukirmalaysia to immerse themselves into the world of Wayang Kulit, Ibu Zain and TM‘s Mengukir Malaysia initiative through videos, a 360º interactive Wayang Kulit experience, behind the scene content and many more. Fans of Wayang Kulit can also visit TM‘s social media pages to use the Wayang Kulit filters and be part of the show.
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