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Telekom Malaysia 2020 Annual Report Part 1
Telekom Malaysia 2020 Annual Report Part 1
GROUP REVENUE
RM10.84 billion
YEAR & KEY GROUP PATAMI
RM1.02 billion
ACHIEVEMENTS TOTAL DIVIDEND PAYOUT
RM539.6 million
14.3 sen per share
Our Customers
2.7
million homes ≈13,000 142
Domestic
Enterprise Customers
≈ 400,000
and Public Sectors
SMEs 522
International
Customers
>21,000
Warga TM
CO N N EC TI N G
& SE R V I N G
THE N ATI ON
SI N C E 1 9 4 6
52.5%
Non-Executives
9 DATA
CENTRES
(including 2 world-class 47.5%
Tier 3 data centres) Executives
>600,000km
domestic fibre cables & >300,000km
submarine cables with ≈30 submarine cable systems
5G
What’s Inside 36th Annual General Meeting (36th AGM)
Leadership Commitment 72
Sustainability Disclosures 73
8 What We Do Sustainability Priorities 74
Sustainability Governance 75
About TM 8 Sustainability Scorecard 78
Corporate Information 10 We Create Value By...
Where We Operate 12 • ...Building a Digital Malaysia 80
Group Corporate Structure 16 • ...Protecting The Planet 90
Group Organisation Structure 17 • ...Putting People First 96
Corporate Milestones 2020 18 • ...Strengthening Our Integrity 116
TM in the News 22
Stakeholder Relationships 24
122 Upholding Governance
27 Chairman’s Statement
Corporate Governance Overview Statement 122
Board of Directors’ Profile 147
Profile of Company Secretaries 159
Scan QR Code
TM Steps Up During the Profile of Senior Management 160
30 Pandemic To Serve The Nation
to watch the
Reach Further, Directors’ Statement on Risk Management and 168
for a Better
Malaysia video.
Internal Controls
Statement of Internal Audit 175
Enterprise Risk Management (ERM) -
32 Management Discussion & Analysis
Risk Committee Report
178
GCFO’s Review 52
Business Review Corporate Directory 186
• unifi: Connecting Malaysians in More Ways Than One 54 Glossary 188
• TM ONE: Catalysing a Hyperconnected Digital Ecosystem 56 Notice of Annual General Meeting 191
• TM WHOLESALE: The Accelerator of Business Growth 58 Statement Accompanying Notice of the 36 AGM th
196
Business Champion Administrative Details for the 36 th AGM 197
• Group Network & Technology (GNT): Backbone of the Request Form
60
Nation: Modernising the TM Network
Proxy Form
• Group IT & Digital (GITD): Digitalisation towards
62
Lean, Mean and Clean
• Group Human Capital Management (GHCM):
64
Nurturing People and Propelling their Growth
• TM Research & Development (TM R&D): Innovating
66
the Present & the Future
GROUP REVENUE
RM10.84 billion
YEAR & KEY GROUP PATAMI
RM1.02 billion
ACHIEVEMENTS TOTAL DIVIDEND PAYOUT
RM539.6 million
14.3 sen per share
Our Customers
2.7
million homes ≈13,000 142
Domestic
Enterprise Customers
≈ 400,000
and Public Sectors
SMEs 522
International
Customers
>21,000
Cover Rationale:
CO N N ECREACH FURTHER
Warga TM
TI N G
& SE R VFOR
I N GA BETTER MALAYSIA
THE N ATI ON
Beyond just connectivity that is portrayed by the
SI N C E 1subtle
9 4WiFi
6 signal reflections, TM as the enabler
52.5%
of Malaysia’s Digital Nation and Digital Economy
aspiration enables multiple facets of the society
Non-Executives
to adopt a digital lifestyle and small businesses as
>900,000km
Digital Businesses and Digital Government presented
in this book.
fibre This globally
cables theme and narrative are carried
consistently from our report cover, separators and
including:
throughout the strategic narrative of this report.
>600,000km
& >300,000km
TM - bringing people together, creating better
livelihoods, powering the nation and enabling a
domestic fibre cables Digitalcables
submarine Malaysia;
with ≈30
to make Life and Business
submarine Easier
cable for
systems
a Better Malaysia. Allowing each of us to reach out
to every community to achieve our aspirations, for a
better Malaysia.
5G
What’s Inside 36th Annual General Meeting (36th AGM)
Leadership Commitment 72
Sustainability Disclosures 73
8 What We Do Sustainability Priorities 74
Sustainability Governance 75
About TM 8 Sustainability Scorecard 78
Corporate Information 10 We Create Value By...
Where We Operate 12 • ...Building a Digital Malaysia 80
Group Corporate Structure 16 • ...Protecting The Planet 90
Group Organisation Structure 17 • ...Putting People First 96
Corporate Milestones 2020 18 • ...Strengthening Our Integrity 116
TM in the News 22
Stakeholder Relationships 24
122 Upholding Governance
27 Chairman’s Statement
Corporate Governance Overview Statement 122
Board of Directors’ Profile 147
Profile of Company Secretaries 159
TM Steps Up During the Profile of Senior Management 160
30 Pandemic To Serve The Nation Directors’ Statement on Risk Management and 168
Internal Controls
Statement of Internal Audit 175
Enterprise Risk Management (ERM) -
32 Management Discussion & Analysis
Risk Committee Report
178
GCFO’s Review 52
Business Review Corporate Directory 186
• unifi: Connecting Malaysians in More Ways Than One 54 Glossary 188
• TM ONE: Catalysing a Hyperconnected Digital Ecosystem 56 Notice of Annual General Meeting 191
• TM WHOLESALE: The Accelerator of Business Growth 58 Statement Accompanying Notice of the 36 AGM th
196
Business Champion Administrative Details for the 36 th AGM 197
• Group Network & Technology (GNT): Backbone of the Request Form
60
Nation: Modernising the TM Network
Proxy Form
• Group IT & Digital (GITD): Digitalisation towards
62
Lean, Mean and Clean
• Group Human Capital Management (GHCM):
64
Nurturing People and Propelling their Growth
• TM Research & Development (TM R&D): Innovating
66
the Present & the Future
TM Group
Smart Robotic
Management
#DIGITALBUSINESSES
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Delivery Address:
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Jalan Pantai Baharu, 50672 Kuala Lumpur
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Our Reporting Journey TM’s IAR is produced and published annually. This report covers the period of
1 January 2020 to 31 December 2020 for financial and up to 15 March 2021 for
non-financial, being within six (6) weeks from the date of issuance of the AGM notice
We are pleased to present Telekom Malaysia pursuant to paragraph 9.25(2) of the Main Market Listing Requirements (Main LR) of Bursa
Berhad’s (TM) Integrated Annual Report Malaysia Securities Berhad (Bursa Securities). This includes our financial and non-financial
(IAR) 2020. This report is designed to give performance, key strategies, material matters, risks and opportunities and stakeholder
succinct and balanced assessments of our value creation.
financial and non-financial performance. Over
* Our IAR comprises the Corporate Overview and Financial Statements; and please note that our Sustainability at
the past five (5) years, integrated reporting TM Statement has been fully integrated in the Corporate Overview. Together, these reports encapsulate TM’s
has become a fundamental component in performance during the year under review, key challenges and opportunities as well as our future plans and
demonstrating our ability to create value for strategies.
our diverse stakeholders.
Reporting Frameworks
Navigation Tools: We benchmark our report against the following frameworks and disclosure requirements:
Integrated Reporting cross-
Read more on page PG referencing refer readers to • International Integrated Reporting Council (IIRC) Framework
information elsewhere in this report • Bursa Malaysia Securities Berhad Main Market Listing Requirements (Main LR)
• Malaysian Code on Corporate Governance 2017 (MCCG)
• Malaysian Companies Act 2016 (CA 2016)
Capitals • Malaysian Financial Reporting Standards (MFRS)
• Global Reporting Initiative (GRI) Standards
Human Social and Relationship
• Bursa Malaysia Sustainability Reporting Guide
• The ACCA Malaysia Sustainability Reporting Guidelines for Malaysian Companies
• ISO 26000:2010 Guidance on Social Responsibility
Intellectual Financial • The United Nations Sustainable Development Goals (UN SDGs)
for stakeholders. Near-term: Financial capital is used to grow the other capitals,
Our income and earnings are used to operate
Trade-offs between and grow the business. We channel our
which temporarily lowers its stock.
capitals are financial funds to pay relevant stakeholders, Long-term: Improvements in the other capitals ultimately
finance other types of capitals and accelerate replenishes and grows financial capital.
necessary to balance our digital aspirations.
the best interest of
all stakeholders.
Our value creation Human Capital : Trade-Offs:
model, as shown on employees so they are well-equipped to meet the Long-term: The new skills and knowledge acquired by
challenges of an increasingly digital Malaysia. employees will result in greater profitability later, thus refilling
pages 6 and 7. our financial capital.
CAPITAL INPUTS
Human Capital Intellectual Capital Social & Relationship Capital
HOW WE DO BUSINESS
Mission
Key Risks
We deliver Life Made Easier • Market • Technology • Regulatory
• Operational • Sustainability
OUR OUR
Enriching customers Continuous convergence
PURPOSE CUSTOMERS
lives through a digital leadership in broadband &
lifestyle mobile customers growth
Commercial Serving our
Sustainability customers across
to allow us to all segments with Taking transformation
Creating value for
fulfil business our unique value forward to enable
businesses through
digitalisation for enterprise &
objectives and proposition to digital enabler
public sector customers
support nation make Life and
building Businesses Strengthen domestic and
Easier Connecting Malaysia to
international ecosystem to
the world with borderless
position Malaysia as a digital
opportunities
hub in ASEAN
228, 458m
water withdrawal
3
RM24.28
billion
RM1.49 billion >900,000km fibre cables globally
Total CAPEX
worth of assets • 52.8% for network access >600,000km fibre cables nationwide
47.4 million kWh • 22.4% for core network
energy consumed • 24.8% for support systems >300,000km of submarine cables internationally
FINANCIAL OUTCOMES VALUE CREATED FOR STAKEHOLDERS
Human Capital
Natural Capital
• Shareholders
EBIT 13% RM19.2
million
& Investment
Communities
drop in carbon • Media
footprint saved through energy
RM1.60
• Communities
consumption initiatives
RM1.75 >15,000
billion students sponsored via • Suppliers
contributed to YTM scholarships since 1994 • Communities
local suppliers • Media
Dividend >30,000
beneficiaries reached
Manufactured Capital
60 %
convergence
>600
Domestic and International
• Customers
WHAT WE DO
ABOUT TM
Telegraph Museum, Taiping; built in 1883 and housed the first Post Office & Telegraph (P&T) Office in Malaya,
which then also became the first office of the Malayan Telecommunications Department.
TM Today
As the enabler of Digital Malaysia, TM has been
at the forefront of each telecommunication
technology evolution of the nation, with a
proud history of 75 years in nation-building;
and will continue to do so. We are the
communications backbone of Malaysia,
with the widest digital connectivity and
infrastructure network.
About TM
Our Vision
TO MAKE
LIFE AND
BUSINESS
EASIER, FOR
A BETTER
MALAYSIA. Our Purpose
To Enable
Powered by
Our Values
1
Total Commitment to Customers
2
Uncompromising Integrity
3
Respect & Care
Our Mission
We deliver life made easier:
To customers, To businesses, To the nation,
1 2 3
through by collaborating by supporting
converged lifestyle with and supporting socio-economic
communication them with integrated development through
experiences solutions education, innovation
& social initiatives
CORPORATE INFORMATION
as at 15 March 2021
Corporate Information
PRINCIPAL BANKERS
• CIMB Bank Berhad
17th Floor, Menara CIMB
No.1 Jalan Stesen Sentral 2 Hamizah Abidin
Kuala Lumpur Sentral Hamizah heads the Group Company Secretarial Division and is responsible for
50470 Kuala Lumpur corporate secretarial matters for TM Group, as well as PLC Compliance. Her profile
Malaysia is disclosed on page 159 of the IAR 2020.
CONTACT US
For enquiries on TM
• Website : www.tm.com.my
• Email : help@tm.com.my
• Reach our general line at +603-2240 9494
• Follow TM on :
@myTMgroup
@myTMgroup
@mytmgroup
@myTMgroup
TelekomMalaysia
Delano holds a Bachelor of Arts from the University of East Anglia, United Kingdom
and a Diploma in Economics from the University of London.
WHERE WE OPERATE
Leveraging on our extensive global connectivity, network infrastructure and collective expertise, TM is well positioned to propel Malaysia as a key digital hub
for the Southeast Asia region.
TM Worldwide Coverage
Close to
6
Regional Offices (RO)
28
Point-of-Presence
30
Submarine Cable
66
Content Delivery
globally (PoPs) Systems Network (CDN) nodes
Australia, UAE, Hong Kong, worldwide spanning over 300,000km worldwide
Singapore, UK and USA worldwide
MAP ITEM
Satellite
TM PoPs
Landing Point
CDN Node
Data Centre
Regional Data Centre
Twin Core Data Centre
Where We Operate
Region
Europe
Africa
Asia
Middle East
North
America
Scan QR code
to view TM
Interactive
coverage map
Where We Operate
KUALA MUDA
MELAKA MERSING
JOHOR
NUSAJAYA BAHRU
Tuas to Singapore
Causeway to
Singapore
MAP ITEM
Trunk Cable Satellite International Cable Landing Station Malaysian Domestic Submarine Lumut to Pangkor Island
Cable System (MDSCS)
International Submarine Sistem Kabel Rakyat Rompin to Tioman Island
Cable System Earth Station Domestic Cable Landing Station
Malaysia (SKRM)
Where We Operate
2 2 5 9
Cable Landing Stations Cable Landing Stations Cable Landing Stations Point-of-Presence (PoPs)
• Telekom Sales & Services Sdn Bhd • GITN Sdn Berhad • Fiberail Sdn Bhd
100% 100% 54%
• Mobikom Sdn Bhd • VADS Berhad • Fibrecomm Network (M) Sdn Bhd
100% 100% 51%
- Webe Digital Sdn Bhd - VADS Business Process Sdn Bhd • Telekom Malaysia (USA) Inc
91.8% 100% 100%
• TM Net Sdn Bhd > PT VADS Indonesia • Telekom Malaysia (UK) Limited
100 % • 90% owned by VADS Business 100%
Process Sdn Bhd
• TM Info-Media Sdn Bhd • 10% owned by VADS Berhad • Telekom Malaysia (Hong Kong) Limited
100% 100 % 100%
• Telekom Multi-Media Sdn Bhd - VADS Solutions Sdn Bhd • Telekom Malaysia (S) Pte Ltd
100% 100 % 100%
EDUCATION CLUSTER
• Universiti Telekom Sdn Bhd
100%
Board of Directors
Board
Audit Committee
Group CEO
Chief Integrity
Chief Internal Group Company
& Governance
Auditor Secretary
Officer
Chief Operating
Officer Chief Marketing Group Chief Chief Strategy Chief Human
(Commercial & Officer Financial Officer Officer Capital Officer
Technology)
Chief
Procurement
Officer
Chief
Information
Security Officer
VP Strategic
Communication
GM Legal,
Strategy &
Intellectual
Property
Director
Transformation
Office
5G
9 JANUARY 2020
TM and Digi collaborate to test out 5G network
sharing for 5G demonstration projects
19 JANUARY 2020 12 MARCH 2020
• TM and Digi Telecommunications Sdn. Bhd.
(Digi), have agreed to work together in testing TM creates history in the Malaysia Book of TM strengthens its partnership with VMWARE
the capabilities, possibilities and limitations of Records (MBOR) for the most number of to bring a new era of Cloud solutions and 5G
5G network sharing between multiple network drones used in a technology launch to Malaysia
service operators during the 5G Demonstration
• TM flew 555 drones showcasing formations • TM in partnership with VMware, Inc. (NYSE:
Project (5GDP) period.
to depict 5G benefits towards progressing VMW) launched tGRID project, an initiative to
• This portrays the synergy between fixed and humanity at the MCMC’s 5GDP launch at transform its existing Cloud Platform to
mobile network operators in delivering 5G Langkawi International Convention Centre in TM ONE Cloud Solutions through the
connectivity solutions towards serving a more Langkawi. This listed TM in the MBOR as the expansion of services to cater to an end-to-end
digital society and lifestyle, digital businesses and most number of drones used in a technology Cloud platform that enables next-generation
industry verticals, as well as digital Government. launch. innovation for Malaysian enterprises.
COVID-19 FINANCIAL
CORPORATE
25 JUNE 2020
TM future skills programme empowers
students and teachers
29 JUNE 2020
8 MAY 2020
TM recognised 50 excellent students with
TM announces appointment of new Chairman
YAYASAN TM SCHOLARSHIP
• TM announced the appointment of its new
• Yayasan Telekom Malaysia (YTM) awarded
Chairman, Tan Sri Dato’ Seri Mohd Bakke
its YTM’s Future Leader Scholarships to 50
Salleh, a highly respected corporate figure with
Malaysian Certificate of Education (SPM) 2019
extensive experience, known for upholding
high-achievers. YTM carefully selected 50
governance and integrity. He brings a wealth
deserving students from more than 6,000
of industry and commercial insights, which
sponsorship applications received nationwide.
will broaden and enrich the Board’s overall
expertise.
29 JULY 2020
TM announces appointment of Imri Mokhtar
as Managing Director (MD)/ Group Chief 7 SEPTEMBER 2020
10 JUNE 2020 Executive Officer (GCEO) TM
TM collaborates with 14 financial institutions
TM successfully concludes landmark virtual • TM announced the appointment of Imri to establish vendor financing programme
35th Annual General Meeting Mokhtar as the new MD and GCEO effective 1
August 2020. Imri is a TM home-grown talent • TM announced its collaboration with selected
• TM concluded its 35th Annual General with a strong background in strategy and 14 financial institutions to embark on a
Meeting (35th AGM) with 14 out of 15 Ordinary business operations. His last positions in TM as TM Vendor Financing Programme called
Resolutions and one (1) Special Resolution Chief Operating Officer (COO) and Acting GCEO “PERINTIS”, which provide comprehensive and
tabled duly approved by its shareholders via placed him in the best position to take TM flexible financing facility as well as consultation
online. forward to our next phase of growth. for TM local SME vendors.
BUSINESS
3 JULY 2020
2 NOVEMBER 2020
3 JULY 2020
MDEC and TM work together to deliver 27 DECEMBER 2020
greater reach and impact to Malaysians TM inks agreement with HUAWEI; set to become
in the digital economy the only Malaysian-owned end-to-end Cloud AI TM expands its unifi service to more areas in
infrastructure service provider Kuching
• TM and MDEC announced a collaboration
in the joint effort to strengthen Malaysia’s • TM signed a Memorandum of Agreement (MoA) • TM, through TM Sarawak, expanded its unifi
service to three (3) more villages in Kuching,
digital readiness, towards realising its with Huawei Technologies (M) Sdn Bhd (Huawei),
Sarawak namely Kampung Boyan, Kampung
Digital Nation aspirations in four (4) key sealing a collaboration that will see further Gersik and Kampung Surabaya. The service
areas of Digitally Empowered Businesses; expansion of its Cloud services offered by its expansion has provided an opportunity for
Rural Digital Economy; Digitally Skilled enterprise and public sector business arm, new and existing TM customers in the area to
Malaysians; and Digital Advocacy and TM ONE. With the MoA, TM ONE customers will experience high-speed Internet connectivity
Community Engagement. enjoy the full capabilities of Cloud α solutions. delivered via fibre optic network.
TM IN THE NEWS
Scan QR code
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information
TM in the News