MAXIS BERHAD 21 AUGUST 2025_EN

LATEST COMPANY ANNOUNCEMENT

Maxis Berhad

Bursa: MAXIS

Q2 FY2025

Associate: Anne Ching

Maxis delivers stable growth with increased profitability in Q2

21 Aug 2025

• EBITDA of RM1,094 million, a 4.6% increase year-on-year (YoY)
• Profit After Tax of RM398 million, an 11.8% increase YoY
• Service Revenue of RM2,204 million, a 0.5% decrease YoY
• Interim dividend of 4 sen per share

Maxis, Malaysia's leading integrated telco, delivered stable growth with improved profitability in the second quarter ended 30 June 2025. Driven by a disciplined focus on operational excellence and cost management, earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by a healthy 4.6% year-on-year (YoY) to RM1,094 million. In line with this, Profit After Tax (PAT) rose by 11.8% to RM398 million.

Underlying service revenue remained stable, with growth in the Consumer Postpaid, Home, and Enterprise segments. Maxis registered service revenue of RM2,204 million, flat YoY due to the continued impact from the change in commercial arrangements for the Company's device protection programme, which was first announced in Q1 2025 and is expected to affect YoY comparisons for the remainder of the year.

In Consumer Mobile, service revenue declined by 1.3% YoY, impacted by the aforementioned commercial arrangements and lower interconnect rates. However, mobile subscriptions grew by 2.8% YoY, led by healthy growth in Postpaid from enhanced data plans that deliver greater value. The Prepaid segment remains focused on targeted product offerings, most recently for travellers and budget-savvy consumers.

The Consumer Home segment, which includes fibre broadband and home solar solutions, maintained a steady momentum with service revenue growth of 1.2% YoY in tandem with a 1.4% increase in total Home connections. The Company’s converged Home proposition continues to deliver exceptional customer value and a seamless experience for households across mobile and broadband connectivity, devices, and solar energy.

The Enterprise business maintained its growth momentum with a 1.5% rise in service revenue, driven by higher mobile subscriptions alongside growth in fixed and solutions revenue. Ongoing business digitalisation continues to boost demand for connectivity and cloud services, driving growing adoption of adjacent solutions like IoT, cybersecurity, managed services, and artificial intelligence (AI). The Company maintains a healthy pipeline of business across all key enterprise segments, from small and medium enterprises (SMEs) to large corporates and the public sector, by providing customised solutions to support their digital transformation needs.

“Our Q2 results demonstrate our continued resilience, driven by a disciplined focus on operational excellence. This includes driving greater efficiency and reliability through digitalisation and AI to enhance and automate processes, including network optimisation. We maintain our full-year guidance for low single-digit service revenue growth and flat to low single-digit EBITDA growth, and will continue to strategically invest in our network and offerings to enhance our integrated capabilities and meet evolving customer needs. Reflecting our sound fundamentals and continued strong cashflow, we are declaring an interim dividend of 4 sen per share.” - Goh Seow Eng, Chief Executive Officer of Maxis

Financial highlights: Q2 2025 vs Q2 2024

• Service Revenue declined by 0.5% to RM2,204 million, due to the previously announced changes in commercial arrangements related to Maxis’ device protection programme.
• Consumer Business service revenue declined by 1.0% to RM1,797 million.
  • Consumer Mobile service revenue decreased by 1.3% to RM1,543 million, while subscriptions grew by 2.8%, bringing the total number of mobile subscribers to 9.81 million. The decrease in service revenue is due to the aforementioned commercial arrangements related to Maxis’ device protection programme, and lower interconnect rates.
  • Consumer Home service revenue grew by 1.2% to RM254 million, supported by a 1.4% rise in subscriptions to 788,000 subscribers. Growth was driven by the continued focus on delivering exceptional customer value and converged home offerings.
• Enterprise Business service revenue rose by 1.5% to RM407 million, driven by higher mobile subscriptions and fixed and solutions revenue growth.
• EBITDA increased by 4.6% to RM1,094 million, supported by stable underlying service revenue and efficient cost management.
• PAT increased by 11.8% to RM398 million in line with EBITDA growth.
• Interim dividend of 4 sen per share for the quarter.
• Capex of RM165 million, prioritising investments in fibre infrastructure that enhance Maxis’ integrated network capabilities and continued focus on targeted upgrades to its mobile network to meet capacity requirements.
• Operating free cash flow stood at RM929 million with a strong cash balance of RM688 million as of Q2 2025, supported by effective working capital management.

Key Initiatives:

• Announced a major expansion of Maxis’ own-built fibre network infrastructure through deployment in Penang, with the goal of connecting more than 100,000 homes in the state by 2027.
• Partnered with Aduna to accelerate enterprise innovation through powerful network application programming interfaces (APIs).
• Presented Hotlink’s best value proposition for budget-savvy consumers under Hotlink Pasti Mampu prepaid and postpaid offerings.
• Launched Hotlink’s Travel SIM with unlimited internet, providing users with reliable connectivity across Malaysia, Singapore, Thailand, and Indonesia.
• Collaborated with the Ministry of Education (MoE) through Maxis eKelas to empower B40 students towards academic success and higher education.

Source: Maxis delivers stable growth with increased profitability in Q2

COMPANY PROFILE

Maxis Berhad

Bursa: MAXIS

Maxis Berhad is a Malaysia-based integrated telco, providing digital services and connectivity solutions. The Company offers a full suite of converged telecommunications, digital and related services and solutions, and corporate support and services functions for the Group. The Company provides a suite of connectivity and managed services for businesses, including new products such as backup as a service (BaaS), managed cloud voice and fifth generation (5G) Internet of Things (IoT). It offers households with the latest routers and home devices that are available through monthly installment payments. Its mobile, fiber and converged offerings are tailored to suit their various lifestyle and workplace needs. The Company's subsidiaries include Advanced Wireless Technologies Sdn. Bhd., Maxis International Sdn. Bhd. and Maxis Mobile Sdn. Bhd. Maxis Mobile Sdn. Bhd. is an operator of mobile telecommunications services for special niche projects such as universal service provision (USP).

https://www.maxis.com.my/

Board of Directors

NAME	DESIGNATION
Dato' Hamidah Naziadin	Interim Chairman/Independent Non-Executive Director
Uthaya Kumar A/L K Vivekananda	Senior Independent Non-Executive Director
Ooi Huey Tyng	Independent Non-Executive Director
Ong Chu Jin Adrian	Independent Non-Executive Director
Mazen Ahmed M. AlJubeir	Non-Executive Director
Mohammed Abdullah K. Alharbi	Non-Executive Director
Abdulaziz Abdullah M. Alghamdi	Non-Executive Director
Lim Ghee Keong	Non-Executive Director

Board Of Directors | Maxis

Group Senior Management

NAME	DESIGNATION
Goh Seow Eng	Chief Executive Officer
Jennifer Wong	Chief Financial Officer
Mariam Bevi Binti Batcha	Chief Corporate Affairs Officer
Ng May Ching	Chief Information Officer
Abdul Karim Fakir Bin Ali	Chief Network Officer
Patrick Er	Chief People and Transformation Officer
Loh Keh Jiat	Chief Consumer Business Officer
Prateek Pashine	Chief Enterprise Business Officer

Management Team | Maxis

CORPORATE SOCIAL RESPONSIBILITY

Nurturing the Next Generation of STEM Leaders

In the misty valley of Kiulu, tucked away in the foothills of Sabah’s Tuaran district, lies Sekolah Menengah Kebangsaan (SMK) Tun Fuad Stephens, a key educational institution in a town with a population of just over two thousand people.

Despite growing up in a small town surrounded by nature and an economy heavily reliant on agriculture and ecotourism, students from the school aspire to one day become Science, Technology Engineering and Mathematics (STEM) leaders of Malaysia. Form 5 students Cherrylane Rachell Cornalius, Ellya Adryanna Roger, Joanneva Rayzel Jeffery and Glady Blenny Justin are a testament to this, as each harbour ambitions of becoming a biochemist, pharmacist, an engineer, and an ophthalmologist.

In their journey toward achieving this goal, they participated in Misi Jelajah Digital (MJD), Maxis eKelas’ annual competition to sharpen their STEM and digital skills. The challenge for MJD was to create a video game with the goal of educating peers about the United Nations’ Sustainable Development Goals (SDGs).

Despite their inexperience, they saw the competition as a golden opportunity for self-development. Through sheer grit and determination, and many, many hours of coding, their hard work earned them a fifth-place finish, edging out larger urban schools from across the nation.

The team from SMK Tun Fuad Stephens explained that they fully utilised the online resources available in the eKelas portal to learn and understand concepts. Next, they applied these concepts in production by cleverly incorporating their own personal experiences during the COVID-19 pandemic to showcase SDG 3 — good health and wellbeing.

While proud of this achievement, they highlighted challenges faced along the way, including the need to overcome the common belief among themselves that STEM is difficult.

The team described their initial experiences with subjects like additional mathematics and chemistry as challenging. And yet, they quickly realised that by simply giving it a try the subjects turned out to be enjoyable. Like in MJD, their inexperience only serves as a reminder that anything is possible when you try.

Their teacher, Hassan Ukong, played a crucial role in their development. Having taught science and chemistry for over 20 years, Cikgu Hassan has seen the trials and tribulations of teaching STEM subjects in the rural communities of Sabah.

Given the right resources, opportunities and support, any student can thrive and accomplish great feats in education and beyond.

That’s where Maxis eKelas comes in -- by providing students, especially from rural communities, with access to quality learning resources, live workshops, competitions, and rewards. MJD, entering its fourth year in 2024 is just one of the many eKelas activities designed to provide Malaysian students with the platform to learn, practice, and grow their STEM knowledge.

Source: Nurturing the Next Generation of STEM Leaders

Sustainability Report

CHAIRMAN’S STATEMENT

DEAR STAKEHOLDERS,

In 2023, we faced several macroeconomic challenges, such as inflation affecting operational costs and high interest rates. Malaysia’s growth slowed, weighed down by weak global demand and high global interest rates. We had to navigate the fast-changing telecommunications sector landscape, which included regulatory changes to the 5G network model and service pricing, a mobile market that is near saturation, shifts in consumers’ needs, as well as the consolidation of key players.

In response to these challenges posed by the uncertain and volatile operating landscape, we have gone back to basics and strengthened our core competencies in connectivity. This realignment is essential to achieve our goals and remain at the forefront as Malaysia’s leading integrated telco. The Board has declared a total dividend of 16 sen per share with a total payout of RM1.25 billion for the financial year ended 31 December 2023. Whilst we are encouraged by our management’s performance, we have taken a prudent stance to reduce the dividend per share from 20 sen per share in 2022 given the aforementioned challenges. This is to ensure that Maxis continues to be resilient and consistent in delivering value to our stakeholders in the short- and long-term. We value the long-standing support received from our shareholders and are confident that Maxis will continue to deliver long-term sustainable shareholder value and returns.

KEY ACHIEVEMENTS

Maxis has always taken pride in providing quality services to our customers. We are also committed to supporting the nation’s digital ambitions by making connectivity accessible and affordable for the rakyat. Our focus on our core business areas – Mobile, Fibre and Enterprise – is designed to strengthen our foothold in a fiercely competitive telco sector. This year, we refreshed our consumer mobile service offerings with new postpaid plans to take advantage of our 5G network as well as high-speed fibre plans to enhance connectivity for our customers. In the enterprise space, we continued to serve a growing number of businesses and forged new strategic partnerships to deliver cutting-edge and comprehensive enterprise solutions. The collective effort across our businesses to establish Maxis as the leading integrated telco in Malaysia has shown tangible results in 2023 as we met the key financial performance target we had set for ourselves, which in turn met the guidance provided to our stakeholders.

UPHOLDING GOOD CORPORATE GOVERNANCE

We are steadfast in upholding the principles of good corporate governance, recognising its fundamental importance in achieving sustainable business success and creating value for our shareholders. At Maxis Group, we operate with the highest ethical standards, adhering strictly to anti-corruption laws, policies, and regulations. Our commitment to these standards is articulated through our Maxis Integrity & Compliance framework (MICF) and our Anti-Money Laundering/Countering Financial Terrorism (AML/CFT) initiatives. The Board members are also assessed based on the Maxis Anti-Bribery and Corruption system in adherence with good corporate governance practices. These frameworks and system guide our actions and ensure that we maintain the highest level of integrity across all our operations. Another key aspect of our governance is the composition and diversity of our Board. The Board’s varied expertise, skills, and independence are pivotal in governing the Company effectively. Our Board members bring a wealth of diverse experiences and perspectives, enabling the Maxis Group to navigate the complex business landscape confidently and ethically. This diversity is not just a matter of policy but a strategic imperative that drives our decision-making processes, ensuring that we operate with integrity and responsibility. STRENGTHENING SUSTAINABILITY

PRACTICES

The Maxis Group continued to demonstrate our pledge to operating a sustainable business whilst delivering value to all our stakeholders. In 2023, we updated key policies such as the Code of Business Practice to include our commitment towards promoting sustainable practices, which apply to both Maxis’ employees and third parties that engage with Maxis. The Maxis Group has also been a leading player in the Malaysian telecommunications industry with respect to supporting the transition to a lower carbon footprint and adopting clean energy solutions. We have transitioned a portion of our fleet to electric vehicles (EVs) in our field operations. Furthermore, our Subang Hi-Tech operations centre is the first telco network site in Malaysia to be awarded the ISO 14001:2015 Environmental Management Systems certification by SIRIM QAS International. We take pride in sharing this accomplishment, highlighting our dedication and commitment towards sustainable operations and environmental management. Another key environmental initiative this year was our e-waste management campaign in Kuala Lumpur, Johor Bahru and Penang. This programme focuses on mobile device collection and recycling, and we have successfully contributed to the refurbishment or recycling of over 49,000 devices, reducing the number of technology devices that contain toxic components from ending up in landfills. Lastly, our eKelas® programme continues to be an integral part of the Ministry of Education’s Digital Educational Learning Initiative, with a reach of over 600 schools across the nation. This initiative has greatly benefited students, teachers, and guardians who have been able to access a wide range of free learning content, which serves as a testament to our dedication to societal advancement and reflects our deeprooted commitment to making a positive impact in the communities we serve.

OUTLOOK

Malaysia’s economic growth in 2024 is expected to trend higher, within the region of 4-5%2 driven by domestic spending, improvement in external demand in addition to infrastructure projects and implementation of strategic initiatives by the Government. The International Monetary Fund is projecting a rebound in global trade growth from 0.4% in 2023 to 3.3% in 2024.

We are cognizant of the challenges and potential upside that may arise this year and look forward to unlocking beneficial opportunities that come our way. We will continue to prioritise our focus on our core competencies in Mobile, Fibre and Enterprise. Customer experience is at the heart of our operations, and we are committed to understanding and adapting to our customers’ evolving needs. Our initiatives to drive operational efficiency and strict cost discipline will ensure sustainable growth and value creation for our shareholders.

ACKNOWLEDGEMENTS

On behalf of the Board, I would like to express our thanks to the Maxis management team and all employees for their steadfast dedication and resilience. Your consistent efforts and commitment have played a significant role in maintaining our success, especially in challenging times. We also extend our appreciation to our business partners, vendors and regulators for their support in Maxis’ growth journey as the leading integrated telco in Malaysia. Your contributions are significant and important to our ongoing progress and success. We look forward to a successful 2024. Notes: 1 BNM Economic and Financial Developments in Malaysia in the Fourth Quarter of 2023. 2 Keynote Address by Deputy Governor Adnan Zaylani Mohamad Zahid at Affin Market Outlook, Menara Affin, Tun Razak Exchange (TRX), Kuala Lumpur, 30 January 2024.

TAN SRI MOKHZANI BIN MAHATHIR Chairman

Read more in our Integrated Report 2023: ar2023.pdf

COMPETITORS

CelcomDigi Berhad (Bursa: CDB)

CelcomDigi Berhad is a Malaysia-based investment holding company. The Company is engaged in the provision of mobile communication services and its related products in Malaysia. It offers products and solutions across mobile, fixed, Internet of things (IoT), cloud, and cybersecurity. Its IoT solutions include Smart Agriculture, Smart Ambulance, Smart Building, Smart City, Smart Fleet Management, Smart Manufacturing, Smart Poultry, Smart Retail, Smart Surveillance and Smart Utility. The Company also offers e-commerce, and digital services and solutions; telecommunication infrastructure services; cybersecurity, networking, information, and communication solutions; and strategic and business development, management, and administrative support services. In addition, it provides network communications, capacity, and services, network and application services, and content solutions. Its subsidiaries include Celcom Berhad, Digi Telecommunications Sdn. Bhd., and InfraNation Sdn. Bhd.

https://celcomdigi.listedcompany.com/

Maxis Berhad (Bursa: MAXIS)

Maxis Berhad is a Malaysia-based integrated telco, providing digital services and connectivity solutions. The Company offers a full suite of converged telecommunications, digital and related services and solutions, and corporate support and services functions for the Group. The Company provides a suite of connectivity and managed services for businesses, including new products such as backup as a service (BaaS), managed cloud voice and fifth generation (5G) Internet of Things (IoT). It offers households with the latest routers and home devices that are available through monthly installment payments. Its mobile, fiber and converged offerings are tailored to suit their various lifestyle and workplace needs. The Company's subsidiaries include Advanced Wireless Technologies Sdn. Bhd., Maxis International Sdn. Bhd. and Maxis Mobile Sdn. Bhd. Maxis Mobile Sdn. Bhd. is an operator of mobile telecommunications services for special niche projects such as universal service provision (USP).

https://www.maxis.com.my/

Telekom Malaysia Berhad (Bursa: TM)

Telekom Malaysia Berhad is a Malaysia-based investment holding company. The Company's principal activities are establishment, maintenance and provision of telecommunications and related services. It operates through a single reportable segment, which is providing fixed-mobile convergence services. Its businesses include Unifi, TM One and TM Global. Unifi is a quad-play provider in Malaysia, offering an integrated suite of services - broadband, mobile, telephony and TV. Unifi offers a comprehensive suite of services for both home and business customers. TM One is an enterprise and government business solutions arm of the Company. TM One offers a comprehensive suite of integrated digital products and vertical-specific solutions, designed to propel digital adoption across diverse market sectors. TM Global specializes in a range of areas including fixed, mobile and wireless connectivity, cyber security, data centers and cloud computing, business services and smart services.

https://www.tm.com.my/

TIME dotCom Berhad (Bursa: TIMECOM)

TIME dotCom Berhad is a Malaysia-based company, which is principally engaged in investment holding and provision of management services. It is a telecommunications provider specializing in domestic and international connectivity, data center, cloud and managed service solutions catered to the retail, enterprise and wholesale markets. It delivers domestic connectivity across the retail market segment, as well as international and domestic connectivity, cloud computing and managed service solutions catered to the wholesale and enterprise market segments across the ASEAN region. Its subsidiaries include TT dotCom Sdn. Bhd., Planet Tapir Sdn. Bhd., TIME dotCom Global Services Sdn. Bhd., Global Transit (Hong Kong) Limited, Global Transit Singapore Pte. Ltd., and others. TT dotCom Sdn. Bhd. is engaged in provision of voice, data, video, and image communication services through its domestic and international network. Planet Tapir Sdn. Bhd. is an investment holding company.

https://www.time.com.my/

REDtone Digital Berhad (Bursa: REDTONE)

REDtone Digital Berhad is a Malaysia-based integrated telecommunications and digital services provider for organizations. The Company is engaged in investment holding and the provision of management services. Its segments include Telecommunication services, Managed telecommunication network services (MTNS), and Cloud and Internet of Things (Cloud & IOT). The Telecommunications Services segment offers data, voice and managed services to governments, enterprises, and small and medium enterprises (SME). The MTNS segment includes building, maintaining, and operating large scale telco engineering projects, Wi-Fi hotspots, base stations, and fiber optic infrastructure. Fixed network solutions, equipment installation, commissioning and integration and radio frequency (RF) design and network optimization are its telco engineering skills set. The Cloud & IOT segment offers cloud services and applications, data center and disaster recovery, and Internet of Things (IoT) for smart farming.

https://www.redtone.com/

OCK Group Berhad (Bursa: OCK)

OCK Group Berhad is a Malaysia-based investment holding company, which is engaged in providing telecommunication services. The Company operates through five segments: Telecommunication Network Services, Green Energy and Power Solutions, Trading, Mechanical and Electrical (M&E) Engineering Services and Investment Holding. The Telecommunication Network Services segment's operations include network planning, design and optimization, network operations and maintenance, infrastructure, and energy management. The Green Energy and Power Solutions segment is engaged in the construction of solar farms, as well as supplying power generation equipment for commercial, retail and factory buildings. The Trading segment involves in the trading of telecommunication hardware and installation of materials, such as antennas, feeder cables, connectors, and others. The M&E Engineering Services business provides mechanical and electrical services to housing development projects, airports, and others.

https://www.ock.com.my/

Binasat Communications Berhad (Bursa: BINACOM)

Binasat Communications Berhad is a Malaysia-based investment holding company. The Company, through its subsidiaries, is involved in the provision of supporting services for small aperture terminal (VSAT) network engineering services, mobile network engineering services, fiber network engineering services, and satellite hub / teleport and digital satellite news gathering (DSNG) services. VSAT systems provides broadband satellite communications for Internet or private network communications. VSAT is ideal for mining camps, vessels at sea, satellite news gathering, emergency responders, oil and gas camps or any application that requires a broadband Internet connection at a remote location. Its Generation Agnostic Base Stations (GABS) are designed based on a platform and uses an optimized hardware and software architecture. The Company supplies approximately 144 fiber cable from maxis hub to customer building and it also do splicing cable for OSP and civil work.

https://www.binacom.com.my/

Sedania Innovator Berhad (Bursa: SEDANIA)

Sedania Innovator Berhad is a Malaysia-based investment holding company, which is focused on sustainability-enabling businesses. The Company’s segments include Sustainable Healthcare, Sustainable Energy, Financial Technology (FinTech), Telecommunications Services (TelcoTech) and Others. The Sustainable Healthcare segment is engaged in the provision of consumer products specializing in healthcare, personal care, household as well as baby and childcare products, and health technologies specializing in preventative healthcare technology solutions. The Sustainable Energy segment is engaged in the provision of green technology and Internet of Things (IoT) solutions for sustainable and environmentally friendly products and services. The FinTech segment provides financial technology solutions for the banking industry. The TelcoTech segment provides the technology on Airtime sharing for telecommunication providers. The Others segment is engaged in the provision of data analytics services.

http://www.sedaniainnovator.com/

XOX Bhd (Bursa: XOX)

XOX Bhd is a Malaysia-based technology company. The Company is a mobile virtual network operator. The Company is primarily involved in offering mobile telecommunications products and services, e-Wallet services, e-commerce solutions, and digital advertising. Its segments include Mobile communication services, Sports, Investment holding and Other segments. Mobile communication services is engaged in the provision of mobile communication services and its related products, e-commerce services and digital advertising in Malaysia. Its Sports segment is involved in establishing, managing and controlling a football club. Other segments refer to non-core business activities of the Company. Its business is focused on SIM card subscriber base with products packaged in ONEXOX Prepaid, ONEXOX BLACK and XOX. The Company's products and services include ONEXOX, XOX Wallet, XOX PayG, BLACK MARKET, ADX, TraX, XOX CITY, XOX Cloud, spaceX, Nimbus and sports.

https://xox.com.my/

MTouche Technology Berhad (Bursa: MTOUCHE)

mTouche Technology Berhad is a telecommunications and media company. Its core businesses, including telco services, digital media content and advertising. It is involved in the provision of mobile value-added services for smartphones, such as the development of mobile content, mobile messaging technologies, billing platforms and interactive media solutions (Mobile Value-Added Services). It is engaged in the research and development of software and provision of software maintenance and support services and managing computer data, data processing, data storage, systems design and analysis. It also hosts various content via its mobile applications, which include amongst others, iSports Liverpool, iSports Arsenal, Foxxy ABC and fcLinked, in the form of Interactive Book Applications via iOS and Android subscription and Electronic Book for mobile and other devices for the market in Asia Pacific countries. It is also involved in the over-the-top Media Platform, which is a system of software.

https://www.mtouche.com/

THE INDUSTRY

Source: BursaMKTPLC: MXSC.KL

Malaysia Telecom Market Analysis

The Malaysia Telecom Market size is estimated at USD 9.08 billion in 2024, and is expected to reach USD 11.08 billion by 2029, growing at a CAGR of 4.07% during the forecast period (2024-2029).

• Malaysia's telecom industry has a deep-rooted history and is forward-thinking in its future strategies. The growth of the telecom industry in Malaysia is expected to be driven by the increasing urban population and the widespread adoption of cell phones that support 3G, 4G, and 5G services. The utilization of the Internet of Things (IoT) is projected to play a significant role in the industry's development, connecting wired and wireless internet services.
• Major telecommunication companies in Malaysia are Celcom, Digi, Maxis, U Mobile, Telekom Malaysia, and Time dotCom. Over the past decade, the Malaysian telecom industry has undergone significant changes that have paved the way for the technological revolution currently taking place in the country. The government has consistently supported the idea that the telecom landscape in the country has been somewhat overcrowded, particularly in the mobile industry. Consequently, several major mergers have occurred, such as the Telekom and Celcom merger, which led to the formation of Axiata Group, and Maxis' acquisition of Time dotCom’s mobile unit, which effectively reduced the number of operators from five to three.
• In April 2023, Telekom Malaysia Berhad (TM), one of the leading converged telecommunications companies in Malaysia, was honored with the Telecom Company of the Year - Malaysia Award and the Wholesale Company Initiative of the Year - Malaysia Award at the Asian Telecom Awards. Additionally, TM played a crucial role in advancing Malaysia’s 5G ecosystem and expanding the country’s infrastructure through its extensive domestic fiber cable network spanning over 650,000 km and over 3 million high-speed broadband access ports across Malaysia. Such significant developments by regional players in the telecom industry will enhance the market's growth.
• Communication infrastructure in Peninsular Malaysia includes fixed and wireless networks like fiber networks, ADSL networks, mobile base stations, earth stations, and microwave link stations. As reported by GSMA Intelligence, Malaysia had 44.5 million cellular mobile connections at the start of 2024, which accounted for 129.2% of the total population. The number of mobile connections in Malaysia saw an increase of 169 thousand (+0.4%) between 2023 and 2024, indicating potential growth opportunities for the market.
• The nation's telecommunications industry has been leveraging IoT technologies in diverse ways. Within the industry, it is being employed to enhance efficiencies and optimize resource usage. Externally, IoT aids telecom companies in monitoring and forecasting data and updating customers on relevant information. Asset management and remote system monitoring stand out as prevalent IoT applications in the telecommunications industry. Telecom operators offer connectivity services to consumers through their IoT devices. Through IoT, the telecommunications industry can capitalize on its data and broaden its scope.
• As per MIDA, the telecommunications industry encompasses operations associated with communications and multimedia (telecommunications, postal, and broadcasting) overseen by the Malaysian Communications and Multimedia Commission (MCMC). The National Fiberisation and Connectivity Plan, NFCP (2019 – 2023), strives to offer sustainable, extensive, top-notch, and cost-effective connectivity. The government persists in promoting the participation of individuals and enterprises in advancing the digital economy in Malaysia amidst the Fourth Industrial Revolution. Such government initiatives to increase the availability of connectivity in the region will drive the market's growth over the coming years.
• The rise of intense competition within the telecommunications industry in Malaysia presents numerous obstacles. This could potentially trigger price battles, resulting in decreased profit margins for telecom firms. To uphold their market share, companies might have to allocate additional resources toward marketing strategies and customer retention initiatives. While fierce competition can stimulate innovation and enhance quality standards, it may also strain resources and contribute to market saturation.

Malaysia Telecom Market Trends

Rising Demand for 5G Driving the Market’s Growth

• MIDA reports that telecommunications companies in the region are currently establishing the foundation for the fifth generation (5G) of mobile internet connectivity to enhance speed and stability. The Malaysian government has unveiled ambitious investment strategies to elevate the country's digital technology standing in the near future. Furthermore, the expanding 5G utilization and governmental initiatives to enhance 5G coverage will contribute to substantial market growth over the coming years.
• In the past few years, Malaysia has been proactively advocating for the advancement of its digital economy. The implementation of 5G networks has the potential to boost economic progress and bolster a nation's competitiveness, enticing investments, fostering innovation, and amplifying productivity gains across diverse industries. Consequently, there is a significant emphasis on broadening 5G infrastructure in Malaysia to stimulate economic growth and maintain competitiveness internationally. As the utilization of 5G technology grows among enterprises and individuals, the demand for swift and reliable internet services will persistently rise, consequently propelling the growth of Malaysia's telecommunications market to greater heights.
• As of September 2023, the Communications and Digital Ministry of Malaysia reported that the rate of 5G adoption in the country remained low despite the extensive network coverage. The Ministry disclosed that the current adoption rate stood at 4.2%, even though the 5G network coverage had reached 68.8%. Additionally, the Ministry assured that the government is committed to further expanding 5G coverage, aiming to achieve 80% coverage in densely populated areas by the end of 2023. Furthermore, escalating investments to promote 5G adoption in the regional market are anticipated to have a substantial impact on the market.
• Additionally, Malaysian telecommunications companies such as Telekom Malaysia, CelcomDigi, YTL Communications, U Mobile, and Maxis have all agreed to the wholesale access agreement with state-owned network operator DNB. DNB was expected to continue expanding the 5G network infrastructure in the country until 80% coverage had been reached by the end of 2023. Furthermore, the Malaysian government confirmed that DNB will be privatized once it achieves its 5G population coverage goal. The government's announcement in May 2023 stated that a second 5G network would be deployed in 2024, with a new entity established to oversee Malaysia's second 5G network.
• Furthermore, DNB unveiled the largest 5G experience center in Malaysia in November 2023 in collaboration with Swedish vendor Ericsson. The primary objective of this state-of-the-art facility is to increase awareness and encourage the utilization of 5G technology throughout the country. This innovative center will function as an educational platform for customers, partners, industry professionals, academic institutions, and government authorities to explore the capabilities of 5G technology through interactive demonstrations and technology exhibitions.
• In February 2024, Telekom Malaysia’s enterprise division, TM One, revealed the establishment of two new laboratories designed to expedite the advancement of 5G-enabled digital services and solutions for major corporations and the government. The firm emphasized that both facilities would function as central locations for integrating cutting-edge technologies, concepts, and digital innovators. These 5G laboratories will offer a collaborative environment where the telecommunications company, its clients, and partners can explore and create customized solutions.
• Additionally, as per the Malaysian Communications and Multimedia Commission, there were roughly 8.2 million mobile broadband subscriptions utilizing 5G technology in Malaysia by the fourth quarter of 2023. This represented a significant rise from the approximately three million subscriptions recorded in the previous quarter. The increase in 5G mobile broadband subscriptions in the country has been substantial over the past year. Noteworthy companies like U Mobile and Celecom are playing a significant role by providing an exceptional average of 5G download speeds of over 400 Mbps. These substantial vendor activities are expected to stimulate the market in the country.
• The government's proactive involvement is crucial in realizing the national 5G connectivity goal. Malaysia has continuously dedicated resources to improve its digital infrastructure. Through initiatives like the National Fiberisation and Connectivity Plan (NFCP) and the MyDIGITAL program, Malaysia is already leading in connectivity compared to some neighboring countries. This strong foundation sets the stage for 5G integration and demonstrates readiness for next-generation technology in its digital infrastructure. The substantial government backing to enhance 5G is anticipated to greatly drive the market.

Data and Messaging Services Segment Expected to Hold a Significant Market Share

• The data and messaging services industry in the nation encompasses internet, SMS, and other communication services provided by both fixed and mobile networks. This industry is experiencing growth in Malaysia as a result of the implementation of 5G services and fiber-optic fixed internet connections, among other factors. Telecom companies are establishing collaborations, securing licensing deals, enhancing fiber and copper network infrastructure, and rolling out 5G services nationwide to meet the growing need for data and messaging services in the country.
• For instance, in July 2023, Hotlink introduced an upgraded prepaid plan that merges elements from the well-known Hotlink Unlimited and Hotlink Pantas plans. The new Hotlink Prepaid Plan provides added value, versatility, and a wider range of internet pass choices. Moreover, Hotlink gave out 20% cashback vouchers to customers who bought new internet passes at the launch. These notable advancements by the company are anticipated to further boost market prospects in the upcoming years.
• Moroever, the rising adoption of 5G technology, fueled by the growing consumer need for high-speed connections and extensive network expansions by the government and leading telecom companies, is projected to boost the demand for data services. Malaysia's initiative to extend 5G coverage to approximately 85% of rural residents by 2024 is expected to further stimulate growth. These substantial advancements in 5G technology will undoubtedly bolster the segment’s expansion in the coming years.
• The country's increasing adoption of digital business processes, including the utilization of internet-based services in various industries such as BFSIs, governments, retail, manufacturing, and healthcare, is driving the need for telecom service providers' data services across industries and among the population. This encompasses internet data packages for both prepaid and postpaid data services. Furthermore, market vendors are broadening their data service offerings to facilitate market expansion in Malaysia.
• The market has witnessed various acquisitions, investments, and partnerships between telecommunication companies in order to enhance their market share in mobile and fixed data services. For instance, in August 2023, Maxis introduced its long-awaited series of new plans featuring 5G services. These enhanced plans offer over twice the data for both 4G and 5G, along with extra bonus data for 5G. These plans are tailored to address the growing digital requirements of consumers and businesses, particularly in terms of video content consumption and productivity tools.
• Furthermore, the growth of the optical fiber network, implementation of mobile internet networks like 4G and 5G, and the demand for fast data and messaging services across various industries and retail customers to bolster the nation's digitalization plan are driving the data and messaging services market in the country’s telecommunications industry. As per Statistics Malaysia, in 2023, approximately 97.1% of the population in Malaysia had access to the 4G LTE mobile network. In contrast, around 95.3% had access to the previous 3G network in 2020. Such significant developments in the field of connectivity are expected to drive the segment's growth and enable more market opportunities for telecom players in the country.

Malaysia Telecom Industry Overview

The Malaysian telecom market is semi-consolidated, with major players like YTL Communications Sdn Bhd, Ansar Mobile (Redtone Digital Berhad), Celcomdigi Berhad, Maxis Berhad, and ONE XOX Sdn Bhd (XOX Sdn Bhd) operating in the market. Market players are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantages.

• April 2024 - U Mobile Sdn Bhd launched its first store in East Malaysia, located at Imago Shopping Mall, Kota Kinabalu, Sabah. The move highlighted the telco’s continuing efforts to expand its reach further and enhance customer engagement in the state. The full-service store is poised to provide customers with the complete range of U Mobile’s offerings and mobile digital experiences, such as an exclusive gaming corner for customers to test the power of U Mobile 5G.
• December 2023 - XOX Com entered into a Memorandum of Understanding (MoU) to discuss and explore business cooperation between the two parties, especially in the field of white-label mobile services, and to improve the digital lives of students from higher education institutions of Malaysia under the MYSISWA Program, particularly students from the UCSI University.

Malaysia Telecom Market Leaders

• YTL Communications Sdn Bhd
• Ansar Mobile (Redtone Digital Berhad)
• Celcomdigi Berhad
• Maxis Berhad
• ONE XOX Sdn Bhd (XOX Sdn Bhd)

*Disclaimer: Major Players sorted in no particular order

Malaysia Telecom Market News

• March 2024: U Mobile Sdn Bhd introduced the U Home 5G broadband plan, which offers customers a hassle-free, plug-and-play solution to enjoy fiber-like speeds without having to hack or install ports. U Mobile made the experience even more seamless by introducing the U Home 5G CPE Bundle. Customers received a brand-new Wi-Fi-6 5G CPE for free when they signed up for the U Home 5G CPE bundle for 24 months at MYR 68 monthly. With this new bundle, customers would immediately get U Home 5G’s unbeatable 5G/4G high speeds, as they would not need to purchase a modem or router.
• February 2024: Ericsson and Digital Nasional Berhad (DNB) solidified their intentions to work together on 5G Advanced in order to uphold the DNB 5G network as one of the most high-performing networks globally. The decision to collaborate was formalized through the signing of a Memorandum of Understanding at the Mobile World Congress 2024 (MWC 24). The partnership will concentrate on improving the 5G user experience and expediting digital services for consumers, government, and businesses, which will also include providing on-demand services.

Source: https://www.mordorintelligence.com/industry-reports/malaysia-telecom-market

ACQ_REF: CS/18247/20250821/130754/MYS/23/22

ACQ_AUTHOR: Associate/Anne Ching