21 Feb 2022
TM in consortium to build new submarine cable system for Southeast Asia – Middle East – Western Europe
With advanced technologies, open cable system concept and capacity of more than 100Tbps, the latest investment will improve connection with Europe and cater for future digital demand
Telekom Malaysia Berhad (TM) announced that the Company is part of a consortium for the latest Southeast Asia - Middle East - Western Europe 6 (SEA-ME-WE 6) submarine cable system, that connects Malaysia with multiple countries namely Singapore, Bangladesh, India, Sri Lanka, Maldives, Pakistan, Oman, Djibouti, Saudi Arabia, Egypt and France.
TM’s participation in the consortium was made official with the signing of the Construction and Maintenance Agreement (C&MA) with all consortium members recently. The SEA-ME-WE 6 joins the list of TM’s investments in submarine cable systems including SEA-ME-WE 3, SEA-ME-WE 4, SEA-ME-WE 5 as well as other numerous international cable routes worldwide.
The SEA-ME-WE 6 will provide TM with one of the lowest latency routes between Malaysia and Europe. It will also create an additional layer of network diversity and resilience for the heavily loaded traffic between Asia and Europe. With its advanced technologies, open cable system concept, and a design capacity of more than 100Tbps, this latest investment will undoubtedly provide the consortium members with complete control over their traffic management.
Commenting on the latest investment, TM Group Chief Executive Officer Imri Mokhtar said, “TM has always been at the forefront in making Malaysia the ideal gateway for connecting our country to the world, as well as enabling global technology players to deliver innovative digital services to Malaysia. Submarine cable expansion remains a key element in achieving this goal.
“Our investment in SEA-ME-WE 6 will allow us to address our capacity requirements to cater for increasing future digital demand across Asia and Europe while continuing to provide reliable, diversified and uninterrupted global connectivity solutions to customers. It will also allow TM to support the deployment of hyperscalers’ data centres as well as the future requirements of 5G network in the country.”
“The SEA-ME-WE 6 submarine cable will land at TM’s new cable landing station in Morib, the latest addition to TM’s existing four (4) international cable landing stations in the country. Its strategic proximity to Klang Valley, which is close to most hyperscalers’ data centres, positions it as a key cable landing site for Malaysia.”
Imri added that the new investment will help realise TM’s aspiration to establish Malaysia as a regional digital hub by facilitating more submarine cables to land in Malaysia. This also demonstrates TM’s commitment to the MyDIGITAL initiative to attract more international submarine cables to land in Malaysia.
Aside from TM, the SEA-ME-WE 6 consortium comprise multiple global players, including Bangladesh Submarine Cable Company Limited (BSCCL), Bharti Airtel Ltd. (Bharti Airtel), Dhivehi Raajjeyge Gulhun PLC (Dhiraagu), Djibouti Telecom SA (Djibouti Telecom), Etihad Etisalat Company (Mobily), Orange (France), PT Telekomunikasi Indonesia International (Telin), Singapore Telecommunications Limited (Singtel), Sri Lanka Telecom PLC (SLT), Telecom Egypt (TE) and Trans World Associates (TWA).
TM is well experienced in both domestic and global submarine cable system development and investments. With 30 submarine cable systems owned and leased spanning more than 320,000 kilometres around the globe, TM is committed to providing the highest service performance and best quality experience to all its customers worldwide.
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Yayasan TM, Teach For Malaysia and Enuma, inc. Bring “Sekolah Enuma” digital learning application to young students in malaysia
Offline learning tool a critical resource for parents and teachers in supporting the children especially those from underserved communities with limited access to the internet, computer devices and appropriate learning materials The pandemic and the ensuing movement restrictions have been very disruptive to students, in particular those forced to rely on online lessons but face limited access to the necessary tools and connectivity. To help address these learning challenges faced by over a million Malaysian students aged five (5) to eight (8), Yayasan TM (YTM), the foundation arm of Telekom Malaysia Berhad (TM), is collaborating with Teach For Malaysia, a not-for-profit advocate for education and Enuma, Inc., a global company focused on digital learning programmes, to bring the Enuma School digital learning application to Malaysia. In this collaboration, YTM is sponsoring the field test of the localised version of the app, which will be known as Sekolah Enuma Malaysia, to 600 students in various communities in Sarawak, Sabah and Kuala Lumpur. Enuma School has been commercially successful in the B2C markets in the US, Korea, Japan, China and Indonesia. Its exceptional Kitkit School programme, winner of the prestigious USD15 million Global Learning XPRIZE (2019), has been used in over 50 countries through schools serving children in under-resourced environments. All its learning activities are carefully and meticulously mapped to specific learning objectives and support individualised learning paths depending on the current level of each student, so students can learn by themselves. This platform will greatly complement the current home-based teaching and learning (PdPR). Sekolah Enuma Malaysia was officially launched in a ceremony by Mohd Najib Ab Rahman, Director of Jabatan Pendidikan Wilayah Persekutuan Kuala Lumpur together with Izlyn Ramli, Director of YTM; and Sooinn Lee, Chief Executive Officer and Founder of Enuma, Inc. This virtual session was also joined by Chan Soon Seng, Chief Executive Officer of Teach For Malaysia. Commenting on this project, Izlyn Ramli said, "This collaboration is a natural extension of YTM's existing strong support for the education ecosystem especially in promoting digital learning among pre- and primary school students. It is also aligned with Telekom Malaysia Berhad's (TM) aspiration to enable Digital Malaysia while supporting the government's agenda in digital education transformation. This offline, game-based digital application will encourage and ease the learning of Bahasa Malaysia, English and Mathematics in a fun and interactive learning process". The Sekolah Enuma field test began on 28 March 2022, involving 600 students, the majority of whom comes from the B40 communities particularly in Kuala Lumpur, indigenous communities in Sarawak and stateless communities in Sabah. Meanwhile, Chan Soon Seng said that Teach For Malaysia is thrilled to work with YTM and Enuma to address the learning challenges faced by students, including those from underserved communities with limited access to internet, devices and appropriate learning materials. "We hope Sekolah Enuma will significantly help to close the equity gap in learning across all segments of society and increase each student's learning outcomes to meet the Ministry of Education's (MOE) goal for full basic literacy and numeracy by standard three," he added. Learning with the Sekolah Enuma app will facilitate and individualise the learning path for each student through in-app placement tests and check-in quizzes, so students learn at a level and pace that is just right for them. They learn through playing child-friendly games developed by seasoned designers which make learning fun, engaging, and self-directed. The app enables each student to learn independently and be the driver of their own learning journey. The standardised content, developed by global and local education experts, is aligned with the MOE curriculum. Accompanying the app is a web-based Learning Management System (LMS) that allows teachers and administrators to manage and track the performance and progress of the students using the app. "Our app contains thousands of learning activities, dozens of games, hundreds of child-friendly e-books and videos. Many are tailor-made based on Malaysian culture and values. It works on Android tablets and smartphones and does not require an internet connection once the app is downloaded," explained Enuma's Sooinn Lee. "Sekolah Enuma is particularly suitable to be used in remote locations and communities where there is a shortage of trained teachers as well as limited internet connectivity." Corporate partners and foundations keen to support the second phase of Sekolah Enuma, which is expected to be launched in Q4 2022, are encouraged to contact Yayasan TM, Teach For Malaysia, or Enuma, Inc. Schools and communities interested in participating in this next phase are also encouraged to do the same. For more information on Sekolah Enuma, please visit www.sekolahenuma.com
TM Records Stronger 2Q 2023 Financial Performance; Sustaining the Group’s Growth Momentum
KUALA LUMPUR, 25 August 2023 – Telekom Malaysia Berhad (“TM” or “the Group”) recorded a stronger financial performance in the second quarter of the year that ended 30 June 2023, compared to the same period in the previous year. Its operating revenue grew 0.3% to RM3.10 billion, propelled by Unifi’s expansion which saw a substantial increase to 3.11 million fixed broadband subscribers. The growth was also due to TM Global’s solid 10.0% revenue growth driven by higher demand for domestic and international data services. Profit After Tax and Non-Controlling Interest (PATAMI) rose 50.4% from RM378.0 million to RM568.7 million due to lower net finance cost and the recognition of tax credits from unutilised tax losses. TM’s Capital Expenditure (CAPEX) allocation for the first half of 2023 stood at RM942.8 million, which accounts for 15.6% of the overall revenue for the expansion of network infrastructure to enhance nationwide coverage. Meanwhile, Earnings Before Interest and Tax (EBIT) was lower by 10.3% at RM630.0 million from RM702.7 million, due to higher preventive maintenance costs to better serve our customers and higher depreciation from revision of asset useful life. TM declared a higher Interim Dividend of 9.5 sen per share. This is a testament of the Group’s positive financial performance and its ongoing commitment to shareholder value. Commenting on these results, Amar Huzaimi Md Deris, TM’s Group Chief Executive Officer said, “We are pleased with this quarter’s performance, which is marked by overall positive results across our Lines of Business (“LOBs”). These achievements further strengthen TM’s growth momentum in facing a more competitive market.” “In the coming months, TM expects to face a more challenging marketplace but remains confident in our overall positive financial performance. The Group remains steadfast to continue strengthening its core business to be commercially sustainable whilst also continuing to contribute to the nation’s growth. “TM is excited by the huge potential of fixed, mobile and lifestyle convergence in the digital market, as well as digital infrastructure and solutions for MSME, enterprise and government sectors, whilst pursuing to capture opportunities from International partners including hyperscalers. “We also remain committed to continuously invest in expanding our network to enable the nation’s progress towards a Digital Malaysia. TM will continue to collaborate closely with the Government to serve as the nation’s trusted partner to grow Malaysia’s overall connectivity and digital ecosystem, including 5G,” Amar concluded. LINES OF BUSINESS PERFORMANCE Unifi drives growth with enhanced services and market leadership Unifi’s revenue increased 0.5% to RM1.41 billion, driven by growth in fixed broadband subscribers reaching 3.11 million from consumer and Micro Small & Medium Enterprises (“MSME”) segments. Reinforcing its market leadership in fibre broadband services, Unifi unveiled its Ultra Gigabit Broadband Plans with 1Gbps and 2Gbps packages designed to empower digital households and expedite the growth of MSMEs. Unifi also strengthened its position by introducing innovative Uni5G postpaid and prepaid all-in-one 4G and 5G mobile plans, enhancing its fixed-mobile convergence value proposition. Unifi’s lifestyle services arm, Unifi TV, continued its pursuit of enriching user experiences by integrating popular streaming apps such as Netflix into its diverse portfolio. This move bolsters Unifi TV’s value proposition and adds to the variety of content available to users. The availability of a comprehensive convergence proposition encompassing gigabit fixed broadband, innovative 5G mobile packages and lifestyle services is the only offering of its kind in the industry. This is delivered over the best fibre network, superior 4G network coverage and expanding 5G nationwide footprint that offers elevated connectivity experiences at home and on-the-go. As a market leader, Unifi Business launched its Digital Marketing Solution (“DMS”) to encourage the MSME segment develop stronger brand presence and online visibility. As the latest addition to its line-up of connectivity and business solutions, DMS complements and augments Unifi Business’ existing offerings and will propel digital adoption among businesses. Earning further accolades, Unifi Business received the “Best Business Fixed Broadband Service Provider” award from PC.com during the period under review. TM One Drives Innovation with Smart Solutions and Private 5G Advancements TM One experience a decline in revenue by 11.4% to RM732.0 million in 2Q 2023 as a result of price reductions in connectivity services and lower one-off revenue from customer projects. To mitigate this, TM One is driving the rapid development of smart innovative solutions for verticals such as smart cities, healthcare, agriculture and industries. As a trusted digital partner for large enterprises and government, TM One is also leading Private 5G propositions and solutions across diverse industries spanning across oil & gas, transportation hubs and manufacturing to drive the country’s advancement. As the largest local cloud provider, TM Cloud Alpha remains the preferred local sovereign hyper-scaled cloud for data residency and locality in Malaysia. It has also reinforced its role in shaping Malaysia’s modern urban landscapes by being the strategic partner for smart city low-carbon initiatives with local councils. Along with its growing local and global partnerships, it has been appointed to implement and support various digital transformation programmes for its customers. In recognition of its industry excellence across a suite of end-to-end next generation business solutions, TM One received the accolade for "Best Enterprise Telco" from PC.com. TM Global on track to make Malaysia the preferred digital hub for ASEAN TM Global recorded a 10.0% solid revenue growth from RM739.9 million to RM813.6 million, contributed by higher demand for both domestic and international data services. TM Global remains steadfast in solidifying its stature as Malaysia’s preferred network infrastructure provider, catalysing digital industry and 4G/5G ecosystem while simultaneously positioning the country to become a digital hub for ASEAN. TM Global continues to deploy its 4G/5G fibre backhaul rollout and drive greater demand for High Speed Broadband Access (HSBA) ports, reinforcing its commitment to support the Government’s aspirations for digital inclusivity in the country. Beyond borders, TM Global has reinforced its position by enriching the platform play services via strategic collaborations with partners on A2P SMS Gateway in Philippines and Content Delivery Network (CDN) Last Mile Delivery in Thailand. Additionally, TM Global continued to cater to mega bandwidth requirements with dynamic and customised solutions for hyper-scalers as well as global service providers, cementing its significance on the international stage.
TM reports strong 3Q2020 performance amidst challenging environment
Encouraging QoQ revenue growth across all product lines 3Q2020 QoQ Key Financial and Operational Highlights (All comparisons refer to the second quarter of 2020 (Quarter-on-Quarter (QoQ) comparison), except as noted): Group Revenue grew 3.8% to RM2.69 billion from RM2.59 billion recorded in 2Q2020. Group Reported Earnings Before Interest and Tax (EBIT) increased by 7.0% QoQ to RM456.2 million, from RM426.3 million in 2Q2020. Group Reported Profit After Tax and Non-controlling Interests (PATAMI) rose 19.9% QoQ to RM329.5 million compared to RM274.7 million. The total capital expenditure (capex) for 3Q2020 stood at 14.9% of revenue or RM400.0 million. unifi: Continues convergence leadership with growth in broadband and mobile; highest convergence penetration of TM households at 58%. TM ONE: Strengthened position as the digital enabler for enterprise and public sector customers with connectivity and end-to-end cloud offerings. TM Wholesale: Continues to connect industry players, carriers, over-the-top (OTT) providers and content players in Malaysia and globally. Addressing the digital divide: Remain committed to increasing connectivity reach via Jalinan Digital Negara (JENDELA) and accelerating the digital economy with recently announced Malaysia Digital Economy Corporation (MDEC) collaboration. Strong Business Performance for 3Q2020 Despite these unprecedented times, TM Group Revenue continues to increase QoQ recording a resilient 3.8% growth to RM2.69 billion from RM2.59 billion recorded in 2Q2020 on the back of higher revenue from voice, internet and data services. Group EBIT for 3Q2020 increased by 7.0% QoQ to RM456.2 million, from RM426.3 million in 2Q2020, on the back of lower operating cost, from the Group's continued momentum from its cost optimisation programmes. This subsequently led to a 19.9% increase in Group PATAMI from RM274.7 million in the preceding quarter to RM329.5 million. In 3Q2020, the company invested 14.9% of revenue in capex amounting to RM400.0 million - in line with guidance - as it continued to optimise its network and sweat its assets. Of the amount invested, 50% was for network access, 17% for core network, and the balance 33% for support system. Imri Mokhtar, Group Chief Executive Officer, TM, commenting on the results: "We are pleased to report another quarter of growth across all key financial metrics – revenue and profits – despite the challenging environment in Q3. Our efforts in cost optimisation continue to yield results with a healthy EBIT and a strong PATAMI. As we enter the ninth month of the Covid-19 pandemic, our priority continues to be the safety and health of our 'Warga TM' while continuously delivering connectivity and solutions excellence to our broad customer base." "We are seeing unifi gaining momentum, posting a 6.3% growth to 1.65 million subscribers, with our total broadband customer base now at 2.26 million. We achieved the highest convergence penetration (of three services or more) in TM households since 2018, of 58%, as more Malaysians embrace digital living-working in this new norm. On the wholesale front, we continue to collaborate with industry players in Malaysia and globally. At TM ONE, we further cemented our leadership position as the digital enabler for enterprise and public sector customers with enterprise-grade connectivity and end-to-end cloud offerings. We look forward to more collaborations with strategic partners and customers towards establishing a solid foundation for a more Digital Malaysia," Imri concluded. Operational Review: Maintaining Business Momentum TM delivered another quarter of robust performance, driven by its agility to mitigate the impact of the pandemic on Group businesses and operations; leveraging on new avenues for growth in the 'new normal' whilst adapting to challenges. unifi: Continues convergence leadership with growth in broadband and mobile Achieved the highest convergence penetration at 58% of TM households. unifi customer base grew 6.3% to 1.65 million; total broadband customer base grew 2% to 2.26 million during the quarter. Helped empower Small and Media Enterprises (SMEs) with relevant tools and knowledge to grow their businesses and embrace digitalisation with the launch of cari@unifi and eBiz Pack, unifi Business Club (uBC) collaboration with Lalamove and live webinars such as Reboot and Sembang Bisnes. Partnered with Funding Society Malaysia to provide business financing solutions for Micro SMEs (MSMEs) utilising Yellow Pages' digital platform. unifi Mobile extended access to the daily free 1GB Productivity Internet offer to 24 hours, until 31 December 2020, to support Malaysian's connectivity needs in Conditional Movement Control Order (CMCO). TM ONE: Strengthened our position as digital enabler for enterprise and public sector customers with connectivity and end-to-end cloud offerings Scaled up the full capabilities of Cloud α (Cloud Alpha) suite of services with full data residency, locality and sovereignty. Appointed as the technology partner of the Department of Statistics Malaysia (DOSM) to develop and maintain the Population and Housing Census of Malaysia 2020 (e-Census) platform. Continue to support state governments and local city councils to establish future-ready smart cities and smart homes via its TM ONE Smart City Solution enabled by the Internet of Things (IoT) and various smart solutions. TM Wholesale: Continues to connect industry players, carriers, over-the-top (OTT) providers and content players in Malaysia and globally Domestic Secured a new contract with a domestic mobile player for cross ocean connectivity, backhaul connectivity solutions and broadband access capacity upgrade. New backhaul connectivity deal with a domestic mobile player for new backhaul services. International Expansion of content delivery services with an Asian-based OTT player. Secured a deal with an Asian-based OTT player for connectivity solution within Asia Pacific, and two (2) new long term data connectivity deals with global carriers. Additional voice business deals with global service providers worldwide. TM Network remained stable throughout CMCO as a result of continuous network optimisation. This is despite traffic utilisation surging between 30% to 50% depending on peak hours, from March 2020 to November 2020 due to more Malaysians working from home. Supporting the nation's digital agenda and addressing the digital divide: Remain committed to increasing connectivity reach via JENDELA and accelerating the digital economy with the recently announced MDEC collaboration. Prospects for the Current Financial Year Ending 31 December 2020 Following the Covid-19 pandemic, Bank Negara Malaysia has revised Malaysia's annual gross domestic product (GDP) forecast to contract between 3.5% to 5.5%[1], against 4.3% growth in 2019. Uncertainty from the most recent wave of the pandemic from October onwards is expected to bring about further revision to these numbers. As the nation faces this adversity, relying even more on the internet and digital connectivity for work and studies, TM continues to serve as an essential service provider, ensuring stable network performance for the entire nation via both our retail and wholesale fronts. The Government's introduction of JENDELA in September 2020 as well as the RM7.4 billion allocations in the recent National Budget to deliver upgraded broadband services for year 2021 and 2022 will serve as a platform to accelerate Malaysia's digital connectivity through wider deployment of mobile, fibre and fixed wireless access. This will pave the way for 5G under the 12th Malaysia Plan (2021–2025). TM is at the forefront in collaborating with other service providers, enabling and delivering JENDELA. We continue to seek opportunities to cater for future demands of connectivity, in line with our proven commitment to maintain business profitability whilst adapting to and exploring new norms and avenues from this dynamic circumstances that the nation faces today. [1] Sourced from Bank Negara Malaysia, 14 August 2020
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