14 Dec 2022
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.
YOU MAY ALSO LIKE
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.
MDEC and TM work together to deliver greater reach and impact to Malaysians in the digital economy
Both parties are collaborating on four (4) key areas of Digitally Empowered Businesses; Rural Digital Economy; Digitally Skilled Malaysians; and Digital Advocacy and Community Engagement. Telekom Malaysia Berhad (TM) and Malaysia Digital Economy Corporation (MDEC) today announced a collaboration in the joint effort to further strengthen the digital readiness of Malaysia, towards realising its Digital Nation aspirations. The collaboration encompasses four (4) key areas namely, to digitally empower Micro, Small and Medium Enterprises (MSMEs); to bolster rural digital economy; to empower Malaysians with digital skills; and to leverage on each other's strengths in running digital advocacy and community engagement programmes. More significantly, it brings the two national organisations, MDEC and TM, together moving in tandem towards delivering greater digital reach and economic impact for the shared prosperity of all Malaysians. Under the MoU, TM and MDEC will work together in matching, introducing and connecting TM with MDEC's MSME ecosystem and established partners such as Perkhidmatan eDagang Setempat (PeDAS) programme, Pusat Internet Desa (PID) and Digital Xceleration (DX), as well as TM's MSME customers to offer products and solutions in TM's identified technology pillars towards further empowering the SME fraternity. This will pave the way towards producing business and technology savvy entrepreneurs, MSMEs who will then drive economic growth. Towards empowering the rural digital economy, both organisations will explore the initiatives to further expand connectivity infrastructure that in turn, can help enable mentoring and coaching to communities on how to increase the utilisation of emerging technology to improve business operations. Both parties will also look into organising training and workshops to enhance the digital skills and competencies of identified communities as well as TM employees, while at the same time building competent graduates to increase their employability. This includes promoting the awareness on 4th Industrial Revolution (IR4.0) related skills to teachers, students and youth to equip them for the digital era. Commenting on the collaboration, Tan Sri Dato' Seri Mohd Bakke Salleh, Chairman of TM said: "We are excited and thrilled to join hands with MDEC in this milestone effort. Both national organisations will explore common ground and embark on the best initiatives towards establishing a solid foundation for the country's Digital Economy and to elevate Malaysia into a Digital Nation. This is also in line with TM's aspirations and unique role as the enabler of Digital Malaysia." "What TM will bring to the table are our comprehensive infrastructure as well as our capabilities to reach out to not only our wide customer base but to more Malaysians nationwide, through our various touchpoints and engagement platforms. As we continue to engage with the communities to increase their awareness on digital solutions and how it can help fulfill their needs; we are also working to provide the future digital workforce with the right skills for a digital business ecosystem. As the national connectivity and digital infrastructure provider, we have always and will continue to support the Government's aspirations in increasing connectivity reach to all," he added. "MDEC's collaboration with TM will complement the 'Malaysia 5.0' as the new narrative for introducing emerging technologies that will focus on accelerating the growth of Malaysia's digital economy in three primary areas: empowering Malaysians with digital skills, enabling digitally-powered businesses, and driving digital investments. Predominantly, the MDEC-TM joint effort is crucial to the new 'Malaysia 5.0' digital economy which will enable greater access and connectivity that will allow the nation to realise the full potential that the Fourth Industrial Revolution (4IR) holds for the economy. This goes to show that we are determined to surge the digital economy agenda for the many and to firmly establish Malaysia as the heart of digital ASEAN," said Datuk Wira Dr. Hj. Rais Hussin Mohamed Ariff, Chairman of MDEC. In addition, the collaboration will look at potential community engagements via digital platforms for the knowledge sharing of products and solutions from both parties to address the communities' needs. With this MoU in place, MDEC and TM will leverage on each other's strengths and complement areas where each entity requires further support towards a higher purpose of realising a Digital Malaysia and the benefits that it will give to more Malaysians; ensuring that no one will be left behind in this digital era and IR4.0.
TM Records Higher Profits in FY2024, Strengthening Future Growth Opportunities
FY2024 Key Highlights (vs FY2023) Operating Revenue recorded a positive trajectory, increasing 0.2% to RM11.71 billion EBIT strengthened by 11.3% from RM2.09 billion to RM2.33 billion PATAMI increased 7.8% from RM1.87 billion to RM2.02 billion Fixed broadband subscribers grew 1.5% to 3.179 million 2nd Interim Dividend of 12.5 Sen per Share and RM230.3 million Special Dividend KUALA LUMPUR, 25 February 2025 – Telekom Malaysia Berhad (“TM” or “the Group”) today announced its financial results for the year ended 31 December 2024 (FY2024), reporting a positive revenue trajectory alongside strong Earnings Before Interest and Tax (EBIT) and Profit After Tax and Non-Controlling Interests (PATAMI) performance. These results underscore TM’s resilience in an increasingly dynamic and competitive market. The Group’s operating revenue recorded a positive trajectory, increasing 0.2% year-on-year (YoY) to RM11.71 billion, while EBIT strengthened by 11.3%, from RM2.09 billion to RM2.33 billion. The EBIT performance exceeded the Group’s market guidance, driven primarily by higher yield products and services, lower operating costs from improved efficiency, and lower depreciation and amortisation costs. Meanwhile, PATAMI increased 7.8% from RM1.87 billion to RM2.02 billion contributed by improved operating profits, lower net finance costs, and utilisation of remaining one-off tax adjustments. The overall encouraging performance is supported by a robust balance sheet and healthy cash reserves, showcasing TM’s strong operational fundamentals and financial position. TM continued to invest strategically in network infrastructure, international submarine cables and data centres in FY2024. Its total capital expenditure (CAPEX) amounted to RM1.59 billion, representing 13.6% of total revenue – well within its guidance range. In line with its robust financial performance, the Group has declared a 2nd Interim Dividend of 12.5 Sen per Share and RM230.3 million Special Dividend. The Total Dividend for FY2024, including the Interim Dividend declared in August 2024 stands at 31 sen per share, reaffirming TM’s commitment towards value creation and sustainable returns for shareholders. Amar Huzaimi Md Deris, TM Group Chief Executive Officer said, “TM’s performance in 2024 reflects our ability to navigate a highly competitive market, both domestically and internationally, while staying true to our core purpose of creating value for all stakeholders. This achievement demonstrates our execution capabilities and commitment to drive operational efficiencies, while advancing Malaysia’s digital agenda. “For instance, our Unifi UniVerse, Malaysia's best convergence offering, continued to delight customers and drive steady growth in our fixed broadband subscriber base, solidifying our position as the nation’s convergence champion with the only quad-play services. Our success is further bolstered by strategic collaborations with government agencies and enterprises, accelerating digital transformation through solutions such as Smart Services, Sovereign Cloud, and Cybersecurity. In addition, we expanded our core digital infrastructure, including nationwide fibre network, broadband coverage, 5G mobile backhaul, data centres and submarine cables - all critical to foster digital inclusivity. This reinforces TM’s role as the digital catalyst connecting Malaysia to the world and the world to Malaysia. “In essence, our core businesses remain resilient, sustaining positive revenue trajectory amidst heightened competitive pressure and market dynamics. At the same time, our internal efficiencies remain robust as evident in our strong EBIT and PATAMI, providing a solid foundation and strategic edge to propel TM forward. This has poised us to better capitalise emerging opportunities such as hyperconnected data centres, AI, and GPU-as-a-Service (GPUaaS) which are among the new growth areas for TM. These efforts will not only drive us closer to our aspiration of becoming a Digital Powerhouse by 2030 but also position Malaysia as the digital hub for ASEAN,” Amar concluded. TM’s 2025 outlook is positive and underpinned by these priorities. The Group’s market guidance reflects confidence in sustained growth and operational excellence, reinforcing long-term value creation. 2025 Market Guidance: Revenue Growth Low single digit increase EBIT Similar level to 2024 CAPEX / Revenue Between 14% - 16% Lines of Businesses (LOBs) Performance B2C Strengthens Position as the Market Leader in Converged Services Our B2C segment (Unifi) reinforced its position as Malaysia’s convergence champion, recording a 1.5% increase in fixed broadband subscribers to 3.179 million in FY2024. This growth reflects Unifi’s strong customer acquisition and retention strategy, driven by its UniVerse campaign. The mobile segment also continued to be fuelled by enhanced postpaid and prepaid offerings, including the 200GB 5G Monthly Data Pass for RM1 for UNI5G Postpaid 39 customers and UNI5G WOW Prepaid plan. In addition, as the preferred digital partner for over 400,000 MSMEs nationwide, Unifi Business forged strategic collaborations with Maybank Islamic Bhd to deliver Banking-as-a-Service solution powered by 5G, and TNG Digital to accelerate MSMEs’ 5G adoption and eWallet services. Unifi was named Best Fixed Business Service Provider and Best Home Broadband Service Provider at PC.com 2024 Readers’ Choice Awards, and awarded Ookla's Fastest Wi-Fi Provider in Malaysia and Open Signal’s World's No.1 Fastest 5G Download Speed provider. For more information, visit https://unifi.com.my/all-in-one, https://unifi.com.my/tv/ and https://biz.unifi.com.my/ B2B Drives Digital Transformation for Enterprises and Government Our B2B segment (TM One), the Group’s enterprise and Government sector business solutions arm, recorded a 0.7% increase in revenue YoY, reaching RM2.91 billion with improved contributions from beyond connectivity products and solutions. Key initiatives include collaboration with the Government to develop and operate the nation’s new emergency response system, the Next Generation Emergency Services 999 (NG999) for more efficient and swifter emergency responses. TM One also launched the first AI-Enabled Global Business Services Centre on the East Coast to enable investment growth in the Eastern Economic Corridor. Recent industry collaborations driving digital transformation include expanding Private 5G rollout with PETRONAS, digitalising PR1MA’s housing projects, upgrading Perodua’s digital infrastructure, enhancing secure SD-WAN connectivity for KPJ hospitals, and strengthening Malaysia’s digital healthcare and wellness services with Siemens Healthineers. TM One was also recognised with multiple industry awards such as PIKOM Award: IT Services Digital Enabler 2024 and Cybersecurity Company of the Year 2024 award by Cyber Security Malaysia. C2C Strengthens Malaysia’s Position as a Digital Hub for the Region Our C2C segment (TM Global), TM’s wholesale business arm, sustained a steady revenue of RM3.06 billion, driven by data demand in both domestic and international segments. Domestically, it continued deploying mobile backhaul sites especially to support 5G and increasing high-speed broadband access, reinforcing digital inclusivity nationwide. Internationally, TM Global has significantly grown data services to enable seamless border-to-border and data centre-to-data centre connectivity, while securing substantial long-term capacity requirements from global carriers. In addition, TM Global is broadening its data centre portfolio, including the development of a new hyperconnected, sustainable AI-ready data centre in Johor in partnership with Singtel’s Nxera, and expansion of the existing Klang Valley Data Centre (KVDC) and Iskandar Puteri Data Centre (IPDC). It also enhanced its core capabilities by introducing sovereign GPU-as-a-Service (GPUaaS) to support Malaysia’s AI aspirations. TM Global was awarded Best Operator in the Emerging Market category by Carrier Community Global Awards 2024 and Telecom Company of the Year – Malaysia and Wholesale Company Initiative of the Year – Malaysia, at AsianTelecom Awards.
NEWSLETTER
Just drop your details and stay updated with the world of Telekom Malaysia. We promise – no spam!