Telekom Malaysia: From Telco to TechCo

Value Investing Case Study 113-1: A fundamental analysis of Telekom Malaysia Bhd, looking at its transformational journey where it traded growth for resilience.  

What if one of Malaysia’s oldest telcos quietly reinvented itself into a digital infrastructure giant? Over the past decade, Telekom Malaysia (TM) has undergone one of the most dramatic corporate transformations in Malaysia. But here is the twist - while the headlines focused on flat revenue and fibre rollouts, a much bigger story was unfolding beneath the surface.

TM was not chasing growth. It was engineering resilience. Behind the scenes, TM systematically rewired its entire business. It pivoted from legacy copper to nationwide fibre, from convergence telco to platform-driven TechCo, and from traditional services to cloud, cybersecurity, AI, and enterprise digitalisation under its PWR 2030 vision.

The result? A company that looks flat on the surface but is structurally stronger than ever.

Despite a decade of topline stagnation, TM’s profitability tells a totally different story. Operating profit compounded steadily. ROIC and ROE consistently exceeded the cost of capital - proof that TM created real economic value even without revenue growth.

Among peers, TM transformed from a margin laggard into a disciplined, capital-efficient operator. It remains Malaysia’s most strategically important digital infrastructure backbone, powering households, enterprises, and hyperscalers.

Today, TM is no longer just a telco. It is Malaysia’s digital engine room - a defensive compounder anchored by essential infrastructure, strengthening returns, and a clearer long-term role in the country’s digital economy.

But is it an investment opportunity?

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If the above article was useful, you can find more insights on how to make money in my e-book. The e-book is now available from Amazon, Kobo and Google Play.

PS: If you are in Malaysia or Singapore, the e-book can only be download from Kobo and Google Play. 

Disclaimer & Disclosure

I am not an investment adviser, security analyst, or stockbroker.  The contents are meant for educational purposes and should not be taken as any recommendation to purchase or dispose of shares in the featured companies.   Investments or strategies mentioned on this website may not be suitable for you and you should have your own independent decision regarding them. 

The opinions expressed here are based on information I consider reliable but I do not warrant its completeness or accuracy and should not be relied on as such. 

I may have equity interests in some of the companies featured.

This blog is reader-supported. When you buy through links in the post, the blog will earn a small commission. The payment comes from the retailer and not from you.

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