24 May 2022
TM One poised to offer comprehensive data centre capacity and data sovereignty for the government’s digital transformation
As the sole local CSP, TM One will ensure data sovereignty and greater trust, privacy and security in the migration and storage of Government and citizen data
With the Malaysian Government’s Cloud Framework Agreement (CFA) formalised, the appointed Cloud Service Providers (CSPs) and Managed Service Providers (MSPs) must now demonstrate their strategic offerings to potential clients.
Anticipating the extended capabilities needed to implement the Government’s strategic shift to cloud, TM One, the enterprise and public sector business arm of Telekom Malaysia Group (TM), continues to expand its data centre portfolio. Furthermore, as the sole local CSP, TM One’s established in-country data centres, infrastructure and services ensure that all operations and transactions are independent of foreign regulations or third-party policies and requirements – which imparts greater agility and trust in the migration and supervision of Government and citizen data.
Imri Mokhtar, Group Chief Executive Officer of TM said, “As Malaysia’s leader in end-to-end cloud and data centre services, we are committed to strengthening our digital offerings to meet the Government’s MyGovCloud requirements. Investing into the growth of our data centres will enable us to manage the volumes of public data throughout and after the migration process. Our locally-based infrastructure and cloud services also enable us to support the unique needs of the Malaysian Government, especially on data sovereignty.”
With several carrier-neutral data centre facilities in Malaysia and one in Hong Kong that operate as multi-cloud providers for various hyperscalers, TM One is on course to launch its tenth centre, which will be a Tier III/Rated 3 Data Centre, anticipated to be unveiled in Q3 2022. With no less than 3MW of power and the ability to accommodate 700 equipment racks, this data centre will aim to improve power efficiency through its cooling system design which runs on modular air-cooled chillers. Across the board, TM One continues to strive towards achieving lower Power Usage Effectiveness (PUE) while meeting the SLA of the customers.
Similar to TM’s other globally certified hyperscale data centres in the Klang Valley, Iskandar Puteri and Brickfields, this new centre will also conform to security standards and certifications including ISO27001, PCI DSS, DCRA and TVRA which will safeguard the Government’s data and assets.
Shazurawati Abd Karim, Executive Vice President of TM One said, “This latest edition to TM One’s data centres will include enhanced data security capabilities through TM One’s Cyber Defence Centre (CYDEC), addressing the Government’s potential risk areas including cybersecurity, compliance, privacy, ethics and social responsibility. To facilitate the transformative journey of individual Government agencies, TM One’s Professional Services team, along with our partner MSP, Cloud Connect, will work closely with these agencies on Cloud Design Planning, Migration Services, and Workload Optimisation Services, customising the solutions and experiences to the unique needs of each agency.”
Cloud Connect, a local cloud broker and software engineering company will partner with TM One as its dedicated MSP. Having worked with service providers, enterprises, small-and-medium businesses, as well as Government agencies for a decade, Cloud Connect has a proven track record of implementing multiple enterprise integration projects, bringing together the right people, processes, and technological capabilities. This makes Cloud Connect the perfect fit to deliver TM One’s end-to-end cloud infrastructure and services to Government institutions in their transformation journey.
Also addressing the importance of data residency, locality and sovereignty in the MyGovCloud endeavour, Shazurawati explains, “Our hyperscaled and intelligent cloud solutions and data centre facilities are governed by the laws of Malaysia, which guarantees data sovereignty and privacy for the Malaysian Government and its citizens. This removes the need and risk of foreign laws and policy intervention or inclusion, ensuring data privacy and security, while enabling greater flexibility and agility in Government services.
“With our deep understanding of the Malaysian landscape and a full suite of established services and infrastructure, we are confident that our infrastructure, solutions, and partnership with Cloud Connect will enable the Government to reach their next advantage, today and tomorrow,” she concluded.
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Chairman of Malaysian Communications and Multimedia Commission pays a visit to TM’s 5G use cases in Langkawi
The Company also deployed the region’s first 5G Standalone (SA) network Telekom Malaysia Berhad (TM) was honored to receive an official working visit by Al-Ishsal Ishak, Chairman of Malaysia Communications and Multimedia Commission (MCMC) to TM's 5G use cases in Langkawi, Kedah recently. The transmission of 5G service in Pulau Langkawi is utilising the region's first 5G Standalone (SA) network, deployed by TM. Al-Ishsal and his delegates were received by Rosli Man, Chairman of TM; Ir. Ts. Azizi A. Hadi, Chief Network Officer, TM; Ahmad Taufek Omar, Executive Vice President / Chief Executive Officer, TM ONE; and Dr. Sharlene Thiagarajah, Chief Executive Officer, TM Research and Development Sdn Bhd (TM R&D). Commenting on the visit, Rosli said: "We are very honored to welcome the Chairman of MCMC to experience our 5G use cases which include UNESCO 8K Virtual Reality (VR) at Langkawi International Airport (LIA) as well as to observe TM's 5G network, smart and innovative solution operations centre at its 5G Command Centre (5GCC). 5GCC serves as an integrated command centre for all our 5G network, smart and innovative solutions in Langkawi. As the national telecommunications infrastructure provider of Malaysia's Digital Nation aspirations, we are indeed excited to be part of this 5G Demonstration Project undertaken by MCMC and showcase our 5G use cases. This signifies our support and capabilities to realise MCMC's aspiration in progressing humanity towards improving the quality of lives of the Rakyat. TM, via our innovative and comprehensive products and solutions will continue to work closely with the Government and MCMC to lay the foundation for Industrial Revolution 4.0 (IR4.0) and rolling out 5G nationwide to serve a more digital society and lifestyle, digital businesses and industry verticals, as well as digital Government." During the visit, Al-Ishsal was briefed on TM's capabilities and readiness to deploy 5G network solutions as well as how the Company can power the Government's Digital Malaysia aspirations through its innovative products and solutions. TM also aspires to work together with the local authorities, particularly in Langkawi to make it a safe tourist destination via TM's solutions. Under the 5G Demonstration Project, TM through its enterprise and public sector business solutions arm, TM ONE and its research and development arm, TM R&D are deploying 11 use cases in Langkawi as below: Smart Safety and Security Solutions – a real-time monitoring system consisting of cameras and related monitoring equipment placed in strategic areas to serve variety of purposes, including building/grounds security, crime prevention, and traffic observation and integrated with TM's emergency response team. Smart Agriculture Solutions – a solution that offers single display and real time monitoring that provides information on indoor farming environment's key parameters such as temperature, humidity, grow lights intensity and selected plant parameters that are critical for timely decision making and ensuring optimality of the growth conditions. Smart Traffic Lights Solutions – data driven solution that provides a single dashboard for monitoring and helps to improve traffic flow by reducing waiting time at traffic lights, improve traffic congestions and management of traffic. Smart Parking Solutions – parking system that provides real time parking bay monitoring using camera and Artificial Intelligence (AI) which enable users to search for vacant parking bay via mobile app. UNESCO 8K VR – 8K resolution streaming over cloud, showcasing 2 episodes focusing on (1) geopark & geosites; and (2) lifestyle in Langkawi. Tourists can have a taste of all these hidden treasures through an immersive virtual reality experience for some hard to access locations that are not for the less fit. Smart Tourism "My Smart City" application – a single, integrated mobile app for tourists' convenience as it consists of several features and services such as Trip Planner, Places of Interest, Events & Happenings, Parking, and Alert Button. Smart Retail Analytics – a platform that analyses customer's experience within a physical premise and offers insights to enhance that experience. With this solution, retailers can improve customer experience, sales and brand loyalty as the platform supports customised services, targeted advertising and visitor visibility. Smart Water Management System – an internet of water solution that offers seamless end-to-end smart water integration that improves non-revenue water management, optimises repair and replacement of ageing infra as well as improves response to weather events such as flooding and pollution through smart water level and water quality measurements respectively. Smart Vehicle Management System – a fleet management solution that provides management of commercial motor vehicles for work purposes. Smart Safety Helmet – a data-driven smart industrial helmet that helps make worksite safer by providing live, wireless monitoring and array of sensors (i.e. accident impact and geolocation) to perform various analysis of data. Geolocation People Safety – the tracking solution is designed to protect and connect with people who matters the most that allows users to locate loved ones and receive alert based on safety zone and SOS button through mobile application. With all these uses cases in place and most of it are already up and running, TM has the highest number of 5G use cases among the telcos participating in the 5G Demonstration Project. The demonstration project is for TM to test the new 5G features, explore the 5G technology system and assess the best way to deploy 5G infrastructure nationwide. The transmission of 5G service in Pulau Langkawi has been going live since early December, where TM has deployed the first 5G Standalone (SA) network in the country and the region. The Company is currently testing the implementation of a converged 5G core network which allows co-existence of Non-Stand Alone (NSA) and SA network. SA is the future of the 5G network deployment and this demonstration is crucial to fast track 5G implementation in the country. 5G speed tests conducted within TM's 5G use cases sites have successfully achieved up to 1.5Gbps. TM's aspiration is to deliver efficient and cost effective 5G infrastructure via infrastructure sharing approach, through the access regulations implemented by MCMC. This is by leveraging on its extensive fibre networks, including the submarine cables, telecommunications towers, and Cloud computing as well as ready Data Centres to support the 5G era in Malaysia. In terms of devices and use cases, its wholly-owned subsidiary, TM R&D is also developing and experimenting 5G related equipment to get ready for the upcoming 5G.
TM DELIVERS LANDMARK 2022 PERFORMANCE (FY2022) Revenue up 5.1% at RM12.12 billion; EBIT up 22.2% at RM2.09 billion; PATAMI up 27.7% at RM1.14 billion
FY2022 Key Highlights (vs FY2021) · Operating Revenue grew 5.1% from RM11.53 billion to RM12.12 billion, with growth across all customer segments and product lines · EBIT grew 22.2% from RM1.71 billion to RM2.09 billion, driven by strong revenue growth and improved cost efficiency · PATAMI grew 27.7% from RM0.90 billion to RM1.14 billion, contributed by lower financing cost · CAPEX investment at 20.0% of revenue or RM2.43 billion, highest in 5 years primarily on growth in fibre service and network expansion · Final interim dividend at 7.5 sen per share declared amounting to RM286.6 million, with total dividend of 16.5 sen per share amounting to RM627.5 million for 2022 · ESG rating upgraded, FTSE Russell rated 3.6 from 3.1 in 2021; CDP rated ‘B’ from ‘C’ in 2021. Both above industry average · FY2022 overall performance showed strong results with good trajectory and operational excellence across all lines of business The financial year 2022 (FY2022) performance, ended 31 December 2022, represents Telekom Malaysia Berhad’s (TM) progress of its 3-year transformation programme (2021-2023). Moving into the final year of this transformation phase, TM remains committed to its focus in delivering value to its stakeholders. Operating revenue grew by 5.1% to RM12.12 billion, from RM11.53 billion in 2021, fuelled by demand in connectivity, solutions and infrastructure. TM continued to strengthen its core businesses across Unifi, TM One and TM Global amidst intensified competition in the market. Through revenue growth and improved cost efficiency, TM’s Earnings Before Interest and Tax (EBIT) grew by 22.2% to RM2.09 billion, from RM1.71 billion last year. Profit After Tax and Minority Interest (PATAMI) rose to RM1.14 billion from RM0.90 billion, up 27.7% through higher operating profit and lower financing cost. Capital Expenditure (CAPEX) stood at 20.0% of overall revenue, amounting to RM2.43 billion invested to deliver growth in fibre services, network modernisation and upgrades. Unifi’s continuous growth momentum Unifi continues its leadership in converged solutions of fixed broadband, mobile services, digital content and solutions for both consumers and MSMEs, recording a revenue growth of 7.5% from RM5.22 billion to RM5.61 billion contributed by increased number of home and MSME customers. Unifi fixed broadband customers grew by 9.3% and exceeded the 3 million mark in 2022. To celebrate this milestone, customers were rewarded with free viewing of all 72 Unifi TV channels for one month, as well as pay-per-view movie discounts in appreciation for their trust and loyalty. Unifi launched its 5G services in November 2022, offering Uni5G plans to Unifi Mobile postpaid and prepaid customers. 5G will reinforce TM’s converged leadership to provide the widest and fastest all-in-one solution for fixed broadband, mobile service and digital content. Unifi Business’ digital solutions continue to boost and support MSME’s digitalisation needs from cloud storage, eCommerce hub, cybersecurity and digital marketing, serving critical needs from connectivity to digital solutions, accelerating their business growth. TM One drives enterprise-grade innovative solutions TM One reported a 0.5% growth in revenue from RM3.32 billion to RM3.34 billion in 2022, after several years of revenue decline amidst changing market dynamics and competitive landscape. This is attributed to higher recurring revenue and bespoke solutions deployment, as a trusted technology partner for large enterprises and the Government. Utilisation of data centre space and power have also increased in 2022. The twin-core data centre of KVDC and IPDC have obtained Green Electricity Tariff (GET) from TNB as well as Green Building Index (GBI) and Leadership in Energy Environmental Design (LEED) certifications. To strengthen its partner ecosystem, TM One launched ‘5G Sphere’ in October 2022 and today counts on over 70 leading technology and smart solution partners to accelerate the co-creation of 5G use-cases. On the other hand, Credence is advancing enterprise’s ‘cloud-first strategy’ as well as developing technologically-skilled professionals to accelerate cloud adoption in Malaysia. TM Global positions Malaysia forward as a digital hub in the region TM Global (rebranded from TM Wholesale) delivered a strong performance which made a significant contribution to the overall 2022 performance. TM Global’s revenue grew 7.8% from RM2.58 billion to RM2.78 billion, on the back of higher domestic data and international digital demand. Domestically, TM Global is the preferred partner for High-Speed Broadband Access (HSBA) with the highest new installation in 4Q 2022. Advancing the country’s 5G rollout, almost 4,000 fiberisation sites were completed for the year. Internationally, TM Global closed deals from US-based hyperscalers and Asia-Pacific carriers for its wholesale data centre solutions and international data services, elevating Malaysia as a trusted digital hub for the ASEAN region. Commentary and Outlook from Dato’ Imri Mokhtar, TM Group Chief Executive Officer “2022 was a milestone year for TM, tracking well in our transformation with growth across our business segments – Unifi, TM One and TM Global, and cost efficiency improvement. The stronger financial position places TM in a position to deliver better value and benefits for our stakeholders – customers, shareholders, partner ecosystem and community. “TM is committed to continuously invest in shaping a Digital Malaysia through technology that empowers communities, businesses and Government – not just in our core business, but also in new, adjacent growth areas such as cloud, data centre, cybersecurity and platform-services. “Sustainability will also be a domain we strive to make continuous progress. We have seen improvements in TM’s ESG ratings, for example the FTSE Russell ESG score rising from 3.1 to 3.6 in 2022 and also the CDP rating upgrade to ‘B’ from ‘C’ last year, both above the industry average. On governance, TM upholds transparency, disclosure and zero-tolerance to all forms of corruption, receiving the Gold Category in the recent Integrity, Governance and Anti-Corruption Award (AIGA) 2022. “As part of TM’s next transformation to become a human-centred TechCo, we announced a reorganisation in December 2022 to streamline our core businesses and subsidiaries under a new entity named TM Technology Services Sdn Bhd (TM Tech). TM Tech is set to become the main operating entity of the Group with effect from 1 March 2023. This new corporate structure will be the catalyst for the next phase of TM’s transformation to reinforce its fixed-mobile convergence leadership, further improve operational efficiencies and deliver a more seamless customer experience. “On the back of our current business momentum, there are new opportunities in the adjacent growth areas but also industry headwinds in terms of regulatory policy and higher technology costs. We are continuously assessing the impact of industry developments and will work closely with key stakeholders towards providing technology that is accessible to all in this digital era.”
TM STATEMENT ON BUDGET 2025
TM welcomes the Government’s Budget 2025 announcement, themed “Ekonomi MADANI: Negara Makmur, Rakyat Sejahtera”, and applauds its continued focus on economic reform and uplifting the well-being of the rakyat. In line with these goals, TM is committed to playing a key role in the nation’s digitalisation journey, ensuring that technological advancements contribute to sustainable and inclusive growth that benefits businesses, MSMEs, communities, and the public sector. In line with Budget 2025’s priorities, TM continues to support digital inclusivity by collaborating with the relevant Ministries and Government agencies to enhance high-speed internet access for underserved areas and improve the quality of digital services in various industries such as education and healthcare. TM also remains dedicated to nurturing the nation’s digital talent by integrating crucial skills such as AI, IoT, cybersecurity, and cloud computing into education and training programmes through our Multimedia University (MMU) and collaborations with TVET institutions. As a trusted partner of over 400,000 MSMEs, TM supports the Government’s ongoing initiatives to strengthen this key segment through various financial initiatives. We will continue providing customised digital solutions and empower MSMEs to thrive in the digital economy. As we progress towards becoming a Digital Powerhouse by 2030, TM is well-positioned to drive Malaysia’s digital transformation. Our key investments in digital infrastructures, talent development, and sustainability will fuel the nation’s long-term growth, reinforcing Malaysia’s position as a digital hub for the ASEAN region.
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