CONFIDENTIAL
OUTREACH GPPV 2020
TELECOMMUNICATIONS
INDUSTRY OUTLOOK
1
TM as Malaysia’s Convergence Champion and Powering up the nation to Digital Malaysia
Data as of 31 December 2018
What we do…..
POWERING UP THE NATION TO:
TM has been at the forefront of every telecommunications technology
evolution in Malaysia.
Our Digital Infrastructure, Connectivity and Digital Solutions will fast-
forward Malaysia into Industrial Revolution 4.0 era and beyond.
We will elevate the quality of life for every Malaysian as we progress to
become a Digital Society, Digital Economy and Digital Government.
We are ready to collaborate in making a Digital Malaysia a reality as we
lead the nation in making life and business easier for a better Malaysia.
Where we are…..
Based on existing and future endeavour for Digital Malaysia, the following goods and services through 7 procurement
categories are still required to support TM Business.
Corporate
Services
Contractor
ServicesSupport
InfrastructureDigitalMaterialDevicesNetwork
1 2 3 4 5 6 7
• CME Equipment
and Services
• Power Related
Equipment
• Tower fabrication
• Tower Accessories
• Rakan
Pemasangan
• Rakan Unifi
• Rakan Rangkaian
• Rakan Broadband
Fiberisation
• ICT Solution
• Data analytic &
IOT Applications
• Big Data
• Application and
System
Development
• Smart Solutions
• Fibre Optic Cable
• Copper Cable
• Plastic based
• Metal based
• Concrete based
• UGOH
Accessories
• Project
Management &
Business
Consultancy
• Media Content
• A&P
• Customer
Premise
Equipment (CPE)
• Local Partner
for Network
Equipment
• Installation &
maintenance-
WiFi
• System
Integrator
What we buy…
Key Trends from Fiberization and Entrance of 5G Networks
With global mobile data traffic expected to grow eight times by the end of 2023, there is a need
for a more efficient technology, higher data rates and spectrum utilization. New applications such
as 4K/8K video streaming, virtual and augmented reality and emerging industrial use cases will
also require higher bandwidth, greater capacity, security, and lower latency. Equipped with these
capabilities, 5G will bring new opportunities for people, society, and businesses.
The introduction of 5G will bring more efficient networks, addressing the capacity needs. 5G will also enable new
services, new ecosystems and new revenues.
By digitalizing 10 industries with 5G, operators can benefit from up to USD 619 billion market opportunity globally in
2026, The 5G business potential, representing potential of additional up to 36 percent growth in revenues.
Operators will find the greatest opportunities in the manufacturing and energy/utilities sectors. Capturing this market
potential requires investment in technology, as well as business development, go-to- market models, and
organizational adaptation.
Market & Technology
Opportunities for Bumiputera Vendors Participation in Telco Industry
CAPEX-based Fiberization and
wireless infra development
Fiberization and wireless
network support and
maintenance
Manufacturing of fixed and
wireless network materialsIOT Application, Smart services,
media content and solution
partners
0 200 400 600 800 1,000 1,200
BTL
Transport
Caterer
PPE
Rakan Unifi
Rakan Pemasangan & Baikpulih (RP-TROS)
Rakan Borneo
IP Core
Plastic Based Items
Metal Based
Pole Concrete
Pole Accessories
IFM
Housekeeping
SOR Renovation
Fire Protection Mtce
Bandwidth Leasing
wifi
Rakan Rangkaian
Security Services
Aircond
Electrical
Rakan Pemasangan
Premium items
Professional Services
Diesel
Copper Accessories
Millions
Bumi Foreign Non-Bumi
Bumi Dominance Procurement Category-Contract Award Distribution (RM) ‘mil
83% Bumi
87% Bumi87% Bumi
89% Bumi
94% Bumi95% Bumi
96% Bumi
96% Bumi98% Bumi
99% Bumi
99% Bumi
Bumiputera vendors are dominance in category of contractor services , civil mechanical and electrical and manufacturing of UGOH materials
UGOH- Underground and overhead
TM continues to champion BUMI empowerment agenda by ensuring
sustainable and highly competitive Bumiputera vendors through a
structured collaborative initiatives
2019
Medium Term 2020
Beyond 2020
• Establish highly competitive vendor as
TM Go-to-Market Partners
• Maximize the bumi vendors
participation through enhanced carve-
out policy
• New two (2) National Champions and
one (1) Regional Champion
• Penetrate regional and global market
through partnership with foreign key
vendors & large companies
• Shared Prosperity initiative within TelCo
industry to develop local capable vendor
i.e. business matching & collaborative
procurement
• Positioning of Champion to be mentor
and anchor for Vendor Development
Program (VDP)
• Produce Convergence Partners with
enhanced competency to support
new technology evolution (5G)
• Vendor as TM Collaborator on new
technology & partnership
• Produce one (1) Global Champion
with market beyond ASEAN
Focus on Innovation and Efficiency
of Vendors
Leveraging Capability towards
Market Expansion and Sustainability
Sustaining & Strengthening Vendors
Beyond TM Market
Bumiputera Vendor Development Program (BVDP) Plan for 2020 - 2022
• Drive innovation towards vendors
efficiency, diversification of products &
services and fast growth
• Enroll innovation driven vendors
aligned with IR4.0 and National
Entrepreneurship Framework (NEF)
• Adoption of IR4.0 (smart
manufacturing) to improve vendors
efficiency & venture into new emerging
opportunities
LOCAL/BUMIPUTERA VENDOR GAP ANALYSIS
No. Area Remarks
1 Skill/Competency BVDP vendors have adequate skills & competency in general to undertake given jobs, however they are lacking on the competency to support new technology evolution in telecommunications
2 Technology Adoption and automation
Vendors are not willing to invest for new technology adoption and office/factory automation. Their resources mainly limited working capital in order to ensure supply sustainability of required products and services
3 R&D and Innovation R&D commercialization effort hampered by low demand and scale to justify their investment in mass production tooling and facilities. Product by local R&D lack of competitiveness to enter the market.
4 Capacity & Market Penetration (Internationalization)
TM business focus is providing telecommunications service and solution to Malaysian market. For contractor services, their competency are limited to TM network and less opportunity to export their services outside Malaysia as the works are being performed by local workers. (labour intensive)For manufacturers, high investment is required to penetrate foreign market and stiff competition with other suppliers with highly technological advancement and economic of scale.
5 Technology transfer Principal foreign suppliers not willing to transfer the technology to local/bumi suppliers as to ensure their market share will remain in this region (conflict of interest)Lack of subject matter expert and resources to acquire new technology from principle
6 Financial Management Inadequate knowledge to manage financial prudently and efficiently
ISSUES AND CHALLENGES IN VENDOR DEVELOPMENT PROGRAM…
Entrance of global players
disrupted the business with the
ability to offer at a lower cost
due to economic of scale
Entrepreneurs are in comfort
zone and not willing to be
graduated from VDP
Inadequate fund to penetrate
ASEAN/Global markets
Lack of business appetite and
higher cost of new technology
adoption
Most vendors are not willing to collaborate
among themselves in order to create
synergy for sustainability and increase their
competitiveness
High business dependency to
anchor
Having been successful in implementing BVDP, we are still facing with new challenges that threaten
BVDP vendor sustainability
VDP PRIORITIZATION (2020 – 2025)
1. Fiberization- Network Development (CAPEX) & maintenance
2. 5G Infra Development (CAPEX-based)3. Wireless Network Maintenance & Support4. Engineering Services Local Partner 5. Manufacturing of Power Related Equipment
(PRE) 6. Manufacturing of network materials (OFC,
plastic based, metal-based)7. Civil, Mechanical and Electrical works
1. ICT & Digital Services 2. Smart solutions Partners ( IOT, Smart-city ) 3. Blockchain Technology4. Artificial Intelligent, Virtual Reality,
Augmented Reality (AI,VR,AR)5. Media content ( Cloud gaming, VOD, Music) 6. Big Data Application7. Cloud Services
Effort
Risk
High
Low High
Low
Cost
High
Low
ValueLow High
Smart application as catalyst to drive the development and
utilization of infra
EXPECTED OUTCOME
To increase the number of a Global, Regional and National Champion
To maximize participation of bumiputera vendors increase bumi dominance in new
categories
To bridge the bumiputera vendors competency gaps by introducing appropriate capacity
building program and procurement policy for bumi to promote R&D and innovation
More incentives from government to encourage R&D and innovation activities
CONFIDENTIAL
END OF PRESENTATION
Thank You
12
Telecommunications Team Member
Mohamad Firdaus Shuib
Assistant General Manager
Noorismawati Ishak
Manager
Shaharuddin Awang
Manager
Mohd Fadzly Kamaruzaman Nashah Bashah
Director Market Intelligent
Zulaikha Paidi
Head
Technopreneurship
Development Section
Industrial Research
Management Centre
Neblina Abdul Salam Babji
Top Related