MyDigital initiatives bode well for TM
KUALA LUMPUR: The recently announced MyDigital initiatives would bode well for Telekom Malaysia Bhd (TM), analysts opine, given the group’s ownership of the High Speed Broadband network.
Premised on the impact of the MyDigital Initiatives on TM, the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) expected the group’s revenue growth in the coming years to remain intact.
“This would be reflected across TM’s main revenue cluster namely unifi, TM One and TM Wholesale,” MIDF Research said.
Given TM’s critical role in Malaysia’s MyDigital Initiative with its ownership of the High Speed Broadband network, AmInvestment Bank Bhd (AmInvestment Bank) expected a faster pace of growth for its wholesale revenue beyond financial year 2021 (FY21F).
“Likewise, TM One’s revenue growth could also be accelerated by the group’s appointment as the sole Malaysian cloud provider for government data,” the research firm said.
The research arm of Public Investment Bank Bhd (PublicInvest Research) recapped that the government has given conditional approvals for Microsoft, Google, Amazon and TM to build and manage hyper-scale data centres for the provision of hybrid cloud services.
It also recalled that investment from these cloud services providers will total RM12 billion to RM15 billion over the next five years.
“This is to assist the migration of public data into the hybrid cloud system and hence, to reduce the government’s cost in managing information in the long run,” PublicInvest Research said.
“TM, being the largest domestic data centre provider, should see benefit in terms of higher data and internet revenue in the future.