ATTACHMENT 1 | ||
LIST OF QUESTIONS AND RESPONSES AT THE 39TH ANNUAL GENERAL MEETING (AGM) OF TELEKOM MALAYSIA BERHAD (TM) | ||
HELD ON 30 MAY 2024 | ||
Minority Shareholders Watch Group (MSWG) | Total: 7 Questions | |
No. | Question | Answer |
1. | The growing demand for carbon-efficient products and | ∙ TM has launched TM One Innovation Lab and Enterprise 5G Lab on 20 February |
services presents some opportunities for the Group. | 2024, as the platform to co-create industry focused solutions which includes helping | |
(Page 41 of Integrated Annual Report 2023 "IAR2023") | our customers in their decarbonisation journey. | |
How does the Company plan to innovate and adapt its | ∙ In 2023, we had introduced several solutions to cater for the growing demand in | |
product and service offerings to meet the growing | carbon-efficient products i.e. Smart Traffic Management powered by AI and sensor- | |
demands? | based Smart Street Light. Please refer to Page 101 of IAR 2023 for the list of | |
solutions. | ||
∙ We have also enhanced the renewable energy usage in data centres by 7% to 40% | ||
in 2023, and secured Leadership in Energy and Environmental Design (LEED) and | ||
Green Building Index (GBI) certifications for our 2 data centres i.e. KVDC and IPDC. | ||
2. | The table below set forth the revenue contribution by key | (a) Revenue drivers |
customer-facing business unit: | ||
We do not anticipate any significant shift in the revenue drivers as retail is still a key | ||
revenue generator and contributing positively with the ramp-up of convergence | ||
products and services. | ||
For the medium to long term, we foresee a higher wholesale contribution to the | ||
revenue mix with increased demand in bandwidth and high adoption of new | ||
With the increasing adoption of AI, quantum computing, | technologies i.e. AI, IoT, platforms and edge computing. | |
edge computing and IOT is expected to pent up the | (b) Capital Expenditures | |
demand for the wholesale bandwidth. On the other hand, | ||
the mobile market is near saturation, not to mention the | The total capital expenditure is aligned to our CAPEX guidance (18%-20% of | |
increased competition. | ||
revenue). Apart from the new growth areas, priority will also be given to strategic | ||
(a) Premised on the above, does the Group anticipate a | investments that support our core network expansion especially to cater for | |
shift in its primary revenue drivers? | increase in bandwidth demand. | |
(b) How is the Company planning to allocate capital | ||
expenditures to support the pent-up demand? | ||
1
ATTACHMENT 1 | ||||
Minority Shareholders Watch Group (MSWG) | Total: 7 Questions | |||
No. | Question | Answer | ||
3. | We achieved sustained revenue growth exceeding the | ∙ Customer remains our utmost priority and we will continue to improve the customer | ||
revenue guidance for the financial year and continued to | experience by providing superior and personalised experiences as elaborated on | |||
optimise expenditures, resulting in a higher than market | page 103 - 107 of IAR 2023. Our cost optimisation initiatives remain balanced and | |||
guidance EBIT." | not in any way adversely affect our customer experience. | |||
(Page 27 of IAR2023) | ||||
How does the Group balance optimising expenditures and | ∙ Our improved NPS score from 39 to 46 is testament to our relentless effort in | |||
delighting our customers towards achieving our aspiration to be a world-class | ||||
maintaining service quality? | company. | |||
4. | The Company to departs from Practice 5.2 of the Malaysian | Board Succession Planning is an important agenda for the Board Nomination and | ||
Code on Corporate Governance ("MCCG"), which states | Remuneration Committee (NRC) and TM Board. The Board has taken cognisance of the | |||
that at least half of the board should comprise independent | directors' retirement and board composition post-AGM, and has deliberated on the | |||
directors. For large companies, the board comprises a | succession plan for the retiring directors. TM will be announcing the new INEDs | |||
majority of independent directors. Telekom's board | appointments soon. | |||
composition as at December 2023 and at the issuance of | ||||
the CG Report consists twelve (12) Directors excluding | Concurrently, the Board will continue to assess the composition of INED to ensure | |||
Alternate Director as follows: | compliance to the MCCG Practise 5.2 and will be making the necessary announcements | |||
in due course. | ||||
a) One Non-Independent and Non-Executive Chairman; | ||||
b) | One Non-Independent Executive Director or | TM Board is committed to enhance the composition to ensure adherence to MCCG | ||
MD/GCEO; | Practice 5.2 on majority independent directors for large companies and diversity in | |||
c) | Four Non-Independent and Non-Executive Directors; | accordance with the Fit and Proper criteria. | ||
and | ||||
d) Six Independent and Non-Executive Directors (INED). | ||||
The composition reflects an equal number of non- | ||||
independent directors and INEDs. | ||||
The Company is currently actively seeking suitable | ||||
qualified candidate(s) for appointment as INED of the | ||||
Company. (Page 28 of Corporate Governance Report | ||||
2023 "CG Report 2023"). Having served as Directors for | ||||
nearly eight years, Tunku Afwida Tunku Dato' A. Malek | ||||
and Balasingham A. Namasiwayam have expressed their | ||||
intention not to seek for re-election at the forthcoming 39th | ||||
AGM. (Page 177 of CG Report 2023). | ||||
2 |
ATTACHMENT 1 | ||
Minority Shareholders Watch Group (MSWG) | Total: 7 Questions | |
No. | Question | Answer |
4. | Upon retirement of Tunku Afwida Tunku Dato' A. Malek | |
and Balasingham A. Namasiwayam, the Board will only | ||
have 4 INEDs on the Board. | ||
(a) What are the interim measures being considered to | ||
enhance the independence of the board while new | ||
INEDs are being sought? | ||
(b) Please provide an update on the progress regarding | ||
the appointment of Independent Non Executive | ||
Directors (INED) so far? | ||
5. | As part of the effort to reduce carbon emissions of its | (a) Network modernisation is essential for TM to stay competitive, resilient and |
operations, Telekom intensified efforts towards energy | efficient in the rapidly evolving digital landscape. The invested CAPEX amount will | |
efficiency including network modernisation. (Page 41 of | form part of our 18-20% CAPEX percentage to revenue guidance. | |
IAR 2023) | ||
(a) What is the anticipated total capex required for the | (b) Modernising our network is a continuous journey. To-date, most of our Core | |
network has been modernised and is able to support new technologies. We will | ||
modernisation of the networks? | continue to enhance our network as per the Network Modernisation Plan approved | |
(b) What percentage of the networks has been modernised | by the Board. | |
to date? | ||
(c) How substantial is the enhancement in energy | (c) We have achieved 14% reduction in our 2023 power utilisation as compared to | |
efficiency within the network subsequent to | our 2019 baseline. Further details on our energy efficiency efforts and | |
modernisation? | performance are outlined on pages 128-130 of the IAR. | |
6. | 'We are committed to leveraging digitalisation as a tool for | TM assesses its carbon emissions and several other environmental metrics as reported |
sustainable growth across various sectors. By integrating | on Page 123-131 of the IAR2023. | |
sustainability into our digital initiatives, we aim to foster the | ||
nation's economic development while minimising | These metrics provide an understanding of the environmental impact of our digitalisation | |
environmental impact." (Page 66 of AR2023) | efforts, as they cover TM's key enablers for digitalisation, namely the environmental | |
impact of our network and data centres. | ||
Has the Group conducted any assessments on the | ||
environmental impact of its digitalisation efforts? | ||
3
ATTACHMENT 1 | ||
Minority Shareholders Watch Group (MSWG) | Total: 7 Questions | |
No. | Question | Answer |
7. | 'As a leading digital company with an extensive network of | ∙ TM is committed to protecting our stakeholders' interests by putting in place |
stakeholders and a vast repository of data, we shoulder a | strategies to ensure cyber resilience and enhanced data protection. | |
significant responsibility to safeguard these assets against | ||
evolving cyber threats. Our cyber security strategy is | ∙ We have a dedicated cybersecurity team led by a Chief Information Security Officer | |
meticulously designed to protect our stakeholders' interests | (CISO) as well as a Security Operations Centre (SOC) to monitor and prevent cyber | |
and ensure the integrity and confidentiality of our data." | threats. TM continues to invest, uplift and optimise cyber security measures | |
(Page 158 of AR2023) | including response playbooks and periodic exercises. | |
How is Telekom preparing for future cyber security | ∙ We also work closely with government agencies including Majlis Keselamatan | |
challenges, such as those posed by the Internet of Things | Negara (MKN), Malaysia's National Cyber Security Agency (NACSA), MCMC and | |
(IoT) and 5G technology? | ||
ministries to further strengthen our control measures to face the ever-growing threat | ||
of cyber attacks. | ||
∙ We continuously engage our customers to better understand their needs in order to | ||
deliver solutions, including IoT and 5G technology, and embed with relevant cyber | ||
security measures. | ||
∙ More information on our approach to cybersecurity in available on Page 158-160 of | ||
the annual report. | ||
4
ATTACHMENT 1 | ||||
PRE-AGM | Total: 13 | |||
No. | Question | From | Answer | |
Category: Door Gift | Total: 2 | |||
1. | Is the company giving any door gift to | 1. | Lee Chew Foong | We thank you for your queries and feedback on the provisioning of door |
shareholders attending this AGM | 2. | Yong Joon Fah | gifts for shareholders attending the virtual 39th AGM. | |
3. | Loo Yeo Ming | |||
Please reconsider giving door gift as token of | 4. | Jama'iah binti Sabilan | In line with the administration guide of the AGM, there will be no | |
appreciation. | 5. | Fong Lee Yong | distribution of door gifts for members/proxies who join or participate in | |
6. | Kong Tun Na @ Kong | this virtual AGM. The Company continues to believe that the most | ||
Toon Nan | equitable way to reward shareholders is in the form of dividends to be | |||
7. | Riduan bin Toani Mydin | declared yearly and TM has always been committed to the announced | ||
8. | Kow Lih Shi | Dividend Policy. | ||
Category: Annual Report | Total: 1 | |||
1. | Can I have a copy of current year financial | 1. | Heng Sau Wah | Our share registrar has mailed the physical copies accordingly. Having |
report? Thank you. | 2. | Loo Yeo Ming | said that, we urged everyone to utilise the digital version available on | |
3. | Fong Lee Yong | our website. | ||
4. | Kong Tun Na @ Kong | |||
Toon Nan | ||||
Category: Strategy & Business | Total: 3 | |||
1. | TM has played a key role in Malaysia's digital | Mohd Khairul Naziri bin | TM continues to play a key role in growing Malaysia's digitalisation | |
infrastructure. With the evolving technological | Abdul Nashir | infrastructure and this is aligned with the government initiatives such | ||
landscape, could you elaborate on the | as JENDELA, DNB 5Gs and others. We are not only focusing on all | |||
company's investment plans for the next few | areas as mentioned in the question, but also including other new | |||
years? | technologies such as AI, IoT, Edge computing and others. | |||
Specifically, are there areas like 5G expansion, | Apart from areas mentioned in the question we are also exploring | |||
fiber optic network upgrades, or emerging | other new technologies such as AI, IoT, data centers, smart services, | |||
technologies like cloud computing that will see | edge computing and other digital services. | |||
a significant focus? | ||||
2. | It was recently announced that Singtel aims to | Teo Cher Ming | Asset recycling or monetization is a continuous evaluation process | |
recycle up to 6 billion worth of assets. Does TM | which we continue to undertake throughout the organization during | |||
have any capital recycling pipeline/targets to | the financial year. We will announce any material transactions through | |||
share with shareholders in this AGM. | Bursa Malaysia as per the Listing Requirement. | |||
5
ATTACHMENT 1 | ||||
PRE-AGM | Total: 13 | |||
No. | Question | From | Answer | |
Category: Business Strategy & Outlook (Cont'd) | Total: 3 | |||
3. | Has the data centre and AI hype benefited TM? | Teo Cher Ming | Data Centre and AI have presented a positive impact to TM. | |
We are are expanding our current capacity to cater the continuous | ||||
high demand, especially from Hyperscalers. | ||||
AI is a continuous journey for us and we have embarked on AI | ||||
capabilities (Machine Learning and Deep Learning) in our network | ||||
ecosystem for proactive troubleshooting and service restoration. | ||||
Our ambition is to embrace Generative AI to improve internal | ||||
efficiency, enrich customer experience and offer personalised | ||||
products. | ||||
Category: Manpower | Total: 3 | |||
1. | Kindly recommend a salary increase for staff | Jama'iah binti Sabilan | We would like to highlight that our salary ranges for non-executives | |
who have been paid the maximum scale | are competitive with the market. | |||
(ceiling salary) for non-executives. | ||||
Employees who have reached the maximum salary scale receive ex- | ||||
gratia payments as one-off compensation, where applicable. | ||||
2. | Percentage and number of staffs who are not | Ishak bin Nordin | For 2023, lesser than 5% of our employees were not eligible for bonus, | |
entitle for issuance of bonus in 2023 (level 1 | due to performance, exits from the company or disciplinary reasons. | |||
achievement- non performers). | ||||
This aligns with our commitment to a high performance culture, and | ||||
we ensure that our processes are fair, transparent and supportive. | ||||
3. | Effectiveness of online training system under | Ishak bin Nordin | In 2023, 100% of employees that were given access to LinkedIn | |
Linkedln? Contract value for subscribing to | Learning have activated their account. Utilisation of our LinkedIn | |||
Linkedln services? | Learning subscription is among the highest in the LinkedIn Learning | |||
community. | ||||
Through our investment in LinkedIn Learning, we are taking employee | ||||
learning to the next level by adopting digital learning that is self-paced | ||||
and on-demand. | ||||
6 |
ATTACHMENT 1 | |||
PRE-AGM | Total: 13 | ||
No. | Question | From | Answer |
Category: Customer Experience | Total: 2 | ||
1. | Customers often face long delays in resolving | Jama'iah binti Sabilan | At TM, we take customer satisfaction very seriously. We appreciate |
problems. Here's an example of TNB's | bringing the efficient approach of TNB to our attention and we | ||
efficient approach: | continue to improve our processes. We have now implemented | ||
stricter quality control and improve the verification process to ensure | |||
9:00 AM: Customer calls the helpline (15454). | repairs are completed on site. | ||
11:00 AM: A technician arrives to assess the | |||
situation and provide recommendations. | |||
3:00 PM: An action team arrives to resolve the | |||
problem. | |||
This quick action results in satisfied | |||
customers. TM should emulate TNB's | |||
approach. | |||
Sometimes TM sends a repair vendor, but the | |||
work is not even done at the owner's house, | |||
and they claim it was resolved. TM needs to | |||
improve this to ensure customer satisfaction. | |||
2. | I am very concerned with the deterioration of | Vinodan A/L C Sreedharan | We understand the frustration with recent connectivity issues. We are |
TM's Unifi Network for both Home Broadband | Nair | pleased to report that we have resolved the Wifi issue on 23rd May | |
and Unifi Mobile services. I am a long term | 2024. | ||
subscriber of both and am noticing a steady | |||
deterioration of the network connectivity. | |||
Constant buffering, cutoff of service for home | |||
broadband and consistent drop calls and lack | |||
of mobile internet connectivity in many areas | |||
has become the standard norm. What is | |||
happening to the quality TM's broadband | |||
network services?? Please take note that this | |||
is a serious ground issue in light of other | |||
competitive service providers available. | |||
7
ATTACHMENT 1 | |||
PRE-AGM | Total: 13 | ||
No. | Question | From | Answer |
Category: Financials | Total: 1 | ||
1. | Can pay dividend 30 - 50 sens? | Kow Lih Shi | The dividend payout is depending on our business performance. We are |
committed to our dividend policy of 40 60% from our reported PATAMI. | |||
Category: Others | Total: 1 | ||
1. | Number of fire incidents involving TM's | Ishak bin Nordin | We are happy to report that there were no fire incidences involving any |
buildings nationwide in 2023? Quantum of lost | TM building in 2023. As such, there are no losses due to fire incident in | ||
(revenue, asset) due to fire incidents? | 2023. | ||
8
ATTACHMENT 1 | |||
LIVE Q&A | Grand Total: 17 | ||
No. | Question | From | Answer |
1. | What is the cost of holding this virtual AGM? | Chew Yean Loon | CEO: |
Liew Chee Meng | The cost of holding this virtual AGM is lower compared to a physical | ||
Does the Company intend to conduct the future | Lee Tuck Keong | session. We believe that these savings can be better translated to | |
AGM/EGM physically? | enhance shareholder value. | ||
TM continues to conduct its AGM virtually in order to leverage on | |||
technology to enable shareholders easier and more efficient access to | |||
attend the AGM and facilitate greater shareholder's participation. We | |||
will continue to assess and consider future AGMs based on prevailing | |||
regulatory guidelines. | |||
2. | Can the AGM be scheduled in a period that is | Lim San Kim | CEO: |
away from peak month in order to avoid | As much as we want to have the AGM on a non-peak month, we are | ||
overlaps with competing obligations and the | required to comply with the various statutory requirements for the | ||
accompanying potential non-attendance by | release of financial statements and to conduct general meetings as | ||
shareholders? | stipulated in the Companies Act 2016 and the Bursa Main Market Listing | ||
Requirements. | |||
3. | When does TM intend to pay dividends and | Lim San Kim | CEO: |
distribute treasury shares? | Our dividend policy is between 40 to 60% of Reported PATAMI and | ||
normally paid twice annually. At the current juncture, the Group has no | |||
treasury shares. | |||
4. | We can witness continuous changes in TM but | Sia Cheng Loong | CEO: |
TM is still having monopolistic advantages. | As a Public Listed Company (PLC), we are committed to sustainable | ||
business growth, and spur the nation's advancement. TM's strategy | |||
What is the strategy of TM to ensure that the | is to continue our leadership in the connectivity space, expand digital | ||
products and services are on par? | business solutions and deliver customer service excellence for | ||
consumers, businesses, industries and the Government. | |||
We continue to make investments to position Malaysia as ASEAN's | |||
digital hub. | |||
9
ATTACHMENT 1 | |||
LIVE Q&A (Con't) | Grand Total: 17 | ||
5. | Is TM current share price reflective of the | Chew Hiap Hong | CEO: |
underlying value of the Company's earnings? If | TM shares are publicly traded and its share price is a function of the | ||
not, what are the efforts undertaken by TM to | demand and supply by market participants. | ||
attract more investors to consider the | TM consistently engages with investors by conducting briefings, both | ||
Company's share price and accordingly, move | |||
up the share price. | physically and virtually to communicate on the Company's strategies | ||
and operations. | |||
6. | Does TM have any plans in place to take TM | Thavarajan A/L Muthiah | Dato' Chairman: |
private (similar to Malaysian Airports Holdings | Pillai | We have no plans to take TM private. | |
Berhad)? | |||
7. | Can TM consider distributing dividends on a | Jaswant Singh | CEO: |
quarterly basis instead of semi-annual basis as | At TM, we continue to assess the frequency of our dividend | ||
it may enhance the Company's share trading | distribution, in line with the best interest for our shareholders and the | ||
volume and eventually its market value? | Company. | ||
8. | Can TM increase the dividend payout while | Fong Lee Yong | Dato' Chairman: |
reducing directors' fee and allowance? | It is our goal to have dividend as much as we can, that is why we | ||
strive to be the best in term of operations. As for directors' fees, I can | |||
understand the shareholders' sentiment but we are a company that | |||
want to attract the best talent as our board members and the current | |||
Board members are all people of experienced and we value their | |||
contribution by at least putting them at the market value based on | |||
their levels. | |||
9. | In the face of economic downturn and regional | Tan Tee Kheng | CEO: |
political instability, what new policies will TM | It is important for TM to be successful and to understand various | ||
adopt to face these challenges? | challenges and market dynamics. Therefore, our business policies | ||
are all aligned to our strategy to deliver our commitments, superior | |||
customer experience and continuous value to our shareholders by | |||
several initiatives and plans moving forward. | |||
10. | Is quality assurance carried out for TM's | Mohamad Faizan Bin Shari | CEO: |
network? | Yes definitely. Network quality has always been our utmost priority | ||
because customers are very important to us. | |||
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TM - Telekom Malaysia Berhad published this content on 16 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 July 2024 09:31:01 UTC.