TELEKOM MALAYSIA Integrated | Our Progress | Words From | Creating Bespoke | Business | Accelerating Our | Our Corporate | Other | |
Annual Report 2022 | So Far | The Leaders | Value For You | Review | Sustainability Journey | Governance | Information | |
RATIONALE | |||
YOUR NEXT IS NOW | |||
Built on a strong foundation and heritage, TM paves its next | |||
era as a human-centred technology company. Our purpose | |||
and journey is to shape a Digital Malaysia that empowers | |||
communities, businesses and Government has come a long | |||
way, yet it is far from over; in fact, it has just begun. | |||
We harness technology to create a better tomorrow for | |||
all. As Future Shapers, we connect our stakeholders to | |||
COVER | opportunities by enabling them with innovative solutions | ||
that help propel them closer to their next goals. Throughout | |||
this annual report, we feature imageries that reflect our | |||
commitment: | |||
For communities, we enrich everyday moments by enabling | |||
converged lifestyle solutions. | |||
For businesses, we enable growth by providing integrated | |||
solutions and strategic collaborations that accelerate | |||
business transformation. | |||
For Government, we accelerate the nation's aspiration | |||
towards becoming a Digital Malaysia with holistic connectivity, | |||
platform and digital solutions. | |||
Inspired by our vision of the future, the juxtaposition of | |||
real-life photography and illustrations are the materialisation | |||
of the NOW and the NEXT, demonstrating our suite of digital | |||
solutions that not only accelerate a Digital Malaysia but also | |||
care for the sustainability of our planet. |
COMMITMENT TO SUSTAINABILITY
In upholding our responsibility to the environment, we are committed to reducing our carbon footprint in the production of our Integrated Annual Reports in printed form. We strongly advocate all stakeholders to access our downloadable reports at tm.com.my/iar2022
WHAT'S
INSIDE
1
Our Progress So Far
Our Reporting Journey | 4 |
TM the Enabler of Digital Malaysia | 6 |
A Snapshot of 2022 | 7 |
Group Corporate Structure | 8 |
Group Organisation Structure | 9 |
Our Sustainability Journey | 10 |
2 | |
Words From The Leaders | |
A Message from Our Chairman | 11 |
Message from GCEO | 16 |
GCFO's Review | 21 |
3 | |
Creating Bespoke Value For You | |
Stakeholder Priorities | 26 |
Our Material Matters | 30 |
Market Trends | 32 |
Mitigating Risks to Value Creation | 38 |
Value Creation Business Model | 44 |
Our Capitals | 46 |
Value Creation Strategy | 49 |
4 | |
Business Review | |
Unifi | |
Keeping Everyone Connected | 56 |
Unifi Mobile | |
Setting the Stage for Social Progress | 60 |
TM One | |
Taking Transformation Forward | 62 |
Credence | |
Transformation Done Right | 68 |
TM Global | |
Enabling Digital Ecosystem | 70 |
5
Accelerating Our Sustainability Journey
Our Commitment to You | 76 | |
Sustainability Strategy | 78 | |
Sustainability Scorecard | 83 | |
Building a Digital Malaysia: | 84 | |
• Fair & Transparent Communication | ||
• | Innovation & Technology | 89 |
• Network Stability & Quality | 93 | |
• | Cyber Security | 96 |
• | Customer Experience | 100 |
• | Affordability & Inclusion | 104 |
Protecting the Environment: | ||
• | Carbon Emissions | 107 |
• | Environmental Quality | 113 |
Putting People First: | 116 | |
• Fair Employment & Engagement | ||
• Health, Safety & Well-being | 121 | |
• | Training & Development | 124 |
• | Responsible Supply Chain | 127 |
• | Community Development | 132 |
Strengthening Integrity: | ||
• | Good Governance | 141 |
6 | ||
Our Corporate Governance | ||
Corporate Governance Overview Statement | 148 | |
Sustainability Governance | 169 | |
Board of Directors' Profile | 175 | |
Company Secretaries' Profile | 187 | |
Senior Managements' Profile | 188 | |
Directors' Statement on Risk Management & | 197 | |
Internal Controls (DSORMIC) | ||
Statement of Internal Audit (SIA) | 208 | |
Enterprise Risk Management (ERM) | 211 | |
Business Continuity Management (BCM) | 217 | |
Additional Compliance Information | 223 | |
7 | ||
Other Information | ||
Corporate Information | 226 | |
Corporate Directory | 228 | |
GRI Content Index | 230 | |
SIRIM Independent Assurance Statement | 235 | |
Glossary | 239 | |
Notice of Annual General Meeting (AGM) | 241 | |
Statement Accompanying Notice of 38th AGM | 248 | |
Administrative Guide for 38th AGM | 249 | |
Proxy Form |
I NT E G R AT E D A N N UA L R E P O RT 2 0 2 2 T E L E KO M M A L AYS I A B E R H A D | 1 | ||
Integrated | Our Progress | Words From | Creating Bespoke | Business | Accelerating Our | Our Corporate | Other | |
Annual Report 2022 | So Far | The Leaders | Value For You | Review | Sustainability Journey | Governance | Information | |
Integrated | Our Progress | Words From | Creating Bespoke | Business | Accelerating Our | Our Corporate | Other |
Annual Report 2022 | So Far | The Leaders | Value For You | Review | Sustainability Journey | Governance | Information |
OUR PROGRESS SO FAR | OUR PROGRESS SO FAR |
OUR REPORTING JOURNEY
We are pleased to present Telekom Malaysia Berhad's (TM or the Group) Integrated Annual Report (IAR) 2022. In our journey to progress into a human-centred TechCo, we strive to create sustainable value that benefits all our stakeholders. This commitment to inclusive stakeholder value forms the basis of our report, which aims to enable stakeholders to make an informed assessment of our financial and non-financial performance during the year. The report also demonstrates how every decision made has revolved around TM improving the lives of stakeholders, including the wider communities, towards creating a more sustainable and digital future for Malaysia.
Scope & Boundaries
TM's IAR is produced and published annually. This report covers the full calendar year from 1 January to 31 December 2022 for financial and where applicable, up to 15 March 2023 for non-financial updates. The report encompasses all our operations and activities across Malaysia. It includes our key strategic plans alongside the quantitative and qualitative outcomes of our activities implemented, financial and non-financial performance, material matters, risks and opportunities and stakeholder value creations.
Independent Assurance
The credibility of our reporting disclosures has been verified by the following independent auditors/verification companies:
Activity | Company |
Consolidated Financial Statement Audit | Ernst & Young PLT (EY) |
Non-Financial Disclosures* | SIRIM QAS International Sdn Bhd |
*Within our sustainability chapter from pages 84 to 145
Forward-Looking Statements
This report contains certain forward-looking statements concerning our future priorities, strategies and growth opportunities. These are based on predictions and expectations that may change due to various uncertainties beyond our
Please click here for the three
- years of Sustainability Performance Data
How to Navigate This Report
Throughout the report, we use the following icons to indicate the connectivity of different elements of our business:
Capitals
Human | Natural | Financial |
Intellectual | Social & | Manufactured |
Relationship | ||
Strategic Pillars |
Reporting Frameworks
This report was developed according to the following
Reporting Principles
We ensure the quality of our reporting disclosures by adhering to the following
control. Therefore, all forward-looking statements are not conclusive and have not been reviewed by auditors.
Our Purpose | Our Business |
standards, guidelines and best practices:
- Integrated Reporting Framework
- Bursa Malaysia Securities Berhad's Main Market Listing Requirements (Main LR)
- Malaysian Code on Corporate Governance (MCCG)
- Companies Act 2016
- Malaysian Financial Reporting Standards (MFRS)
- Bursa Malaysia's Main LR on Sustainability Reporting
- Bursa Malaysia's Sustainability Reporting Guide
- Global Reporting Initiative (GRI) Sustainability Reporting Standards
-
The Association of Certified Chartered Accountants
(ACCA) Malaysia Sustainability Reporting Guidelines for Malaysian Companies - Task Force on Climate-Related Financial Disclosures (TCFD)
- The United Nations Sustainable Development Goals (UN SDGs)
- ISO 26000:2010 Guidance on Social Responsibility
principles:
Transparency: We provide clear and accurate information to stakeholders, thus enabling them to accurately assess our performance
Stakeholder Inclusiveness: We describe TM's efforts to meet the evolving needs and expectations of all our stakeholders
Materiality: We emphasise on TM's economic, environmental and social (EES) impacts that significantly affect the sustainability of our business and stakeholder value creation
Balance: We report on both positive and negative aspects of the business so that stakeholders can make fair and well-informed decisions
Comparability: We include information from previous years, where possible, to demonstrate changes in our performance over time
Potential: We indicate the current and future growth potential of the business so stakeholders can understand the reasoning behind our decisions
Reach Out to Us!
We are always looking for ways to improve our reporting disclosures to keep our stakeholders better informed on our value creation journey. We welcome all questions or suggestions.
Please share your feedback to: stratcomms@tm.com.my
Leadership Role
Our integrated reporting process is governed by the Board, led by the Management team and delivered through groupwide collaboration. This enables strong governance over the report, thus ensuring its integrity and quality.
Statement from the Board of Directors
The Board acknowledges its responsibility to ensure the integrity and accuracy of TM's IAR 2022. To our knowledge, this integrated report addresses all the issues material to business and stakeholders, providing a fair assessment of TM's integrated performance during the reporting year.
Tan Sri Mohammed Azlan Hashim
Chairman
Our Customer | Our People | ||||
Material Matters | |||||
M1 | Fair & Transparent | M6 | Affordability & | M11 | Training & |
Communication | Inclusion | Development | |||
M2 | Innovation & | M7 | Carbon | M12 | Responsible |
Technology | Emissions | Supply Chain | |||
M3 | Network Stability | M8 | Environmental | M13 | Community |
& Quality | Quality | Development | |||
M4 | Cyber Security | M9 | Fair Employment | M14 | Good |
& Engagement | Governance | ||||
M5 | Customer | M10 | Health, Safety | ||
Experience | & Well-Being | ||||
Stakeholders | |||||
Employees | Government & | Media | |||
Regulators | |||||
Customers | Suppliers | Communities | |||
Shareholders | Business | ||||
& Investment | Unions | ||||
Partners | |||||
Communities | |||||
Sustainability Impact
Economic Social Environmental Governance
REPORTING ON VALUE
We adopt an integrated approach to value creation. This provides us with a comprehensive view of every aspect of our business, from monitoring changes in the external environment to staying ahead of our stakeholders' evolving needs. Our integrated- thinking approach
to decision-making, management and
UNDERSTANDING OUR CONTEXT
Operating Landscape: What is happening outside?
Our ability to deliver value and enable a Digital Malaysia is influenced by external factors, such as emerging technologies, market trends, economic conditions and new regulatory policies. Therefore, we actively monitor this dynamic landscape and stay ahead of any developments.
See page 32
Stakeholder Engagement: What do our stakeholders need?
Our long-term growth and success depend on the continued trust and support of our stakeholders. Therefore, we regularly engage with them to understand how we can serve their diverse needs, covering both financial and non-financial.
See page 26
DEVELOPING OUR
STRATEGIC PURPOSE
Material Matters: How do we prioritise?
Our ability to create sustainable EES impact focuses on prioritising the matters that materially impact both business and stakeholder value. Therefore, we apply the principle of materiality in formulating our strategies and business decisions.
See page 30
Strategic Direction: Where are we headed?
Our organisation is at a pivotal moment,
EXECUTING OUR STRATEGY
The Six (6) Capitals: What resources do we have?
Our business operations and growth require a strong pipeline of financial and non-financial resources. Therefore, we leverage the following six (6) capitals to effectively execute our value-creation strategy:
Financial | Human | Intellectual | ||||||||||
Capital | Capital | Capital | ||||||||||
Our income and earnings are | Our dedicated and skilled | Our rich 77-year history as | ||||||||||
used to operate and grow the | Warga TM act as our execution | an industry pioneer is what | ||||||||||
business. We channel our | engine. We invest in our | stakeholders trust. We embrace | ||||||||||
financial funds to pay relevant | employees so they can drive | new technologies and digital | ||||||||||
stakeholders, finance other | our strategic purpose forward. | solutions that strengthen | ||||||||||
types of capital and propel our | our value proposition and | |||||||||||
Digital Malaysia aspirations. | competitive edge. | |||||||||||
Natural | Social & | Manufactured | ||||||||||
Capital | Relationship Capital | Capital |
DELIVERING MEANINGFUL VALUE
Value Creation
TM's purpose is to create sustainable value for our diverse of stakeholders. This includes strong financial returns for our diverse group of stakeholders, building the careers of our Warga TM, providing educational scholarships to future leaders, becoming a strategic partner for Malaysia's critical and sovereign communications network, delivering critical
reporting enables us to deliver long-term value as we fulfil our purpose of empowering communities, businesses and Government.
Risks & Opportunities: What can impact our growth and value?
Our business is exposed to a range of risks and opportunities that could materially impact long-term value. Therefore, we proactively mitigate these risks while leveraging on opportunities for growth.
See page 38
as we gear up for the next phase of our evolution towards becoming a human- centred TechCo. Therefore, our strategy is now anchored on a refreshed purpose: to shape a Digital Malaysia through technology that empowers communities, businesses and Government.
See page 49
Our operations rely on various resources, including energy, water, radio spectrum and other natural resources.
As we progress on our sustainability journey, we strive to continuously reduce the impact of our activities on the environment.
Our strong and meaningful stakeholder relationships allow us to meet our nation building agenda. We take pride in creating bonds that build a resilient and thriving society.
Our vast infrastructure network, data centres and base stations are essential in connecting Malaysians nationwide. We also have retail outlets, office buildings and other physical assets that play an important role in our growth and operations.
See pages 46-48
connectivity that empowers people and ensuring we leave behind a better planet and society for our future generations.
See pages 26-52
4 | TELEKOM MALAYSIA BERHAD INTEGRATED ANNUAL REPORT 2022 | INTEGRATED ANNUAL REPORT 2022 TELEKOM MALAYSIA BERHAD | 5 | ||||
Integrated | Our Progress | Words From | Creating Bespoke |
Annual Report 2022 | So Far | The Leaders | Value For You |
OUR PROGRESS SO FAR |
TM THE ENABLER OF DIGITAL MALAYSIA
Business | Accelerating Our | Our Corporate | Other |
Review | Sustainability Journey | Governance | Information |
OUR PROGRESS SO FAR
A SNAPSHOT OF 2022
As Malaysia's leading converged telco, Telekom Malaysia Berhad (TM) is the national connectivity and digital technology provider. TM has served the nation with its comprehensive suite of communication services and solutions for 77 years and proudly continues to play its role in ensuring inclusive connectivity for all Malaysians.
TM is committed to enabling a sustainable future and improving social, economic and environmental well-being of the community. TM has also set ambitious sustainability targets backed by industry best practices to track its near- to long-term sustainability performance. Underpinned by strong corporate governance, TM adheres to the highest standards of ethics, integrity and transparency.
While we continue to invest in our commercial growth and sustainability as a Public Listed Company (PLC), as the nation's leading fibre provider and a Government-Linked Company (GLC), we are uniquely positioned to serve the nation's interest more directly and to bring greater impact on diverse communities. Through our strong commercial and sustainable returns, we will invest in strengthening our core business, exploring new growth areas and making a positive impact on the communities and nation at large.
KEY ACHIEVEMENTS
RM12,118G OUP REVENUE.1
million
RM1,143G OUP PATAMI.3
million
OUR CUSTOMERS
TOTAL CUSTOMERS NATIONWIDE
3.5 | HOME | 3.1 million |
includes voice, broadband, | ||
million | Unifi Mobile and Unifi TV | |
SME | 0.4 million | |
includes voice, broadband, | ||
Unifi Mobile and solutions |
First established as the Malayan Telecommunications Department in 1946, TM has grown in leaps and bounds through various cycles of the country's telecommunications technology evolution. Leveraging its innovative culture, TM delivers smart solutions that not only make lives easier for the community and businesses but also safeguard the environment as part of its sustainability commitment. TM is ready to enable an end- to-end digital ecosystem to create a more sustainable future for all Malaysians.
TM provides a wide range of communication services and solutions in enterprise digitalisation, fixed (telephony and broadband), mobility, content, WiFi, ICT, cloud, data centre, cyber security, Internet of Things (IoT) and smart services. Anchoring on its focus growth areas, TM is driven by stakeholder value creation and emphasises delivering an enhanced customer experience via continuous customer service quality improvements and innovations while ensuring increased operational efficiency and productivity.
TM continues to evolve to meet the needs of its stakeholders and the demands of the future and lead the industry in innovation, customer centricity and value creation; driven by its vision of becoming a human- centred TechCo. In its transformation journey, TM's business and solutions are evolving to put people at the core of everything. The Group remains steadfast to innovating and implementing technologies that have the potential to enhance the lives and experiences of Malaysians, in multiple ways.
Our Vision
To shape a Digital Malaysia through technology that empowers communities, businesses & Government
Our Mission
Humanising technology and making it accessible to all Malaysians in a sustainable manner
For communities, | For businesses, | ||||
we enable growth by | |||||
we enrich everyday | providing integrated | ||||
moments by enabling | solutions & strategic | ||||
converged lifestyle | collaborations that | ||||
solutions | accelerate business | ||||
transformation | |||||
For Government, we accelerate the nation's aspiration towards becoming a Digital Malaysia with holistic connectivity, platform and digital solutions
EBIT
RM2,090.2
million
TOTAL DIVIDEND PAYOUT
RM627.5
million
ESG PERFORMANCE
FTSE4Good Bursa Malaysia
- 4 out of 4 stars rating
- Top 25% of Malaysian public listed
companies
Carbon Disclosure Project (CDP)
- Improved rating to B in 2022 (2021: C)
- Significant improvement in scoring for governance and carbon emissions
- Improved rating to A- for Supplier Engagement Rating (SER) in 2022 (2021: B-)
FTSE Russell - Rated 3.6
- Improved total scoring to 3.6 in 2022 (2021: 3.1)
Environmental Footprint
- 12.45% reduction in overall carbon emissions
• 6,000 Enterprises
- 2,800 Government customers
- 9 Data centres
• 163 Malaysian service providers
- 571 International Telcos, OTT, hyperscalers
OUR NETWORK | |
CABLES GLOBALLY INCLUDING: | |
>690,000 km | >340,000 km |
domestic cables | submarine cables |
with 32 submarine | |
cable systems | |
OUR PEOPLE | |
WARGA TM | |
19,499 |
DIVERSITY:
36% women on the Board
31% women in Senior Management
6 | TELEKOM MALAYSIA BERHAD INTEGRATED ANNUAL REPORT 2022 | ||
INTEGRATED ANNUAL REPORT 2022 TELEKOM MALAYSIA BERHAD | 7 | ||
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Disclaimer
TM - Telekom Malaysia Berhad published this content on 20 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2023 07:35:04 UTC.
