Top 10 Telecommunications & Media Companies and Stocks in Malaysia 2024

In the digital age of the 21st century, the telecommunications and media industries are key drivers of economic growth and social progress. They not only connect the global information superhighway but also shape the future of culture, entertainment, and commerce. Malaysia, with its strategic geographical location and growing digital economy, has become an indispensable force in these fields. Many of these companies are listed on Bursa Malaysia, including the ACE Market, which is a significant part of the stock exchange's offerings.

Next, we will describe the investment highlights of the telecommunications and media industry, the various factors affecting this industry, and introduce the top ten telecommunications and media companies in Malaysia by market value.

Why Invest in Malaysian Telecommunications & Media Companies?

As the Malaysian economy experiences solid growth, telecommunications & media companies in Malaysia, a key infrastructure underpinning the modern economy, faces ever-increasing demand and unprecedented growth potential. Not only is the sector critical to the country’s digital transformation, it is also well positioned to take advantage of the global technology upgrade cycle.

Many of these companies are listed on the main market of Bursa Malaysia, which provides a conducive trading environment and global access.

Geographical Location

Malaysia's unique geographical location has made it a key node connecting Asia, Oceania, and the Indian and Pacific Oceans. This not only encourages it to become the preferred place for international telecommunications companies to establish data centers and network hubs, but also ensures the provision of low-latency network connections to the Asia-Pacific region. As a member of ASEAN, Malaysia's strategic location makes it a gateway to the regional market.

Benefiting from a stable political situation and an investment-friendly policy environment, it has attracted a large amount of foreign capital, accelerating the construction of telecommunications infrastructure and the prosperity of the media industry. Coupled with its core position in the international undersea cable system, Malaysia has consolidated its role as an international communication hub, which has a positive effect on attracting investment, promoting technological innovation, and improving service quality.

Telecommunications Sector Growth

The proliferation of communication technologies such as 5G and gigabit optical networks has begun to facilitate the deep integration of the digital economy with the real economy and has accelerated the widespread adoption of various innovative applications.

The demand for high-speed and stable connections from businesses and consumers is driving the growth in the quantity and revenue of telecommunications services, bringing significant economic benefits to the industry. The Malaysian telecommunications market is expected to reach USD 8.33 billion in 2024 and is projected to reach USD 9.07 billion by 2029. By Jul 2024, the sector is expected to see significant growth in stock market activities and listing dates of companies on the ACE Market.

5 Important Factor that Affect Telecommunications & Media Industry

The Malaysian telecommunications & media industry is a multi-faceted ecosystem influenced by different factors that shape its trajectory and present opportunities for investors. Investors should stay informed about the latest market data, insights, and trading ideas to make informed decisions. Here, we delve deeper into five pivotal factors that have a profound impact on the industry:

Policy

The Malaysian government has placed great emphasis on the development of 5G technology, accelerating the construction and popularization of 5G networks through policy support and financial investment. The acceleration of 5G network construction and popularization is expected to increase the annual revenue of telecommunications operators by about 900 million US dollars. Malaysia's Digital National Plan (DNB) is a Single Wholesale Network (SWN) that provides 5G services, and the support of policies is crucial for the success of this plan.

A report by the GSMA proposed measures such as clarifying DNB's mission, introducing appropriate regulatory systems, and maintaining flexibility to help the success of DNB, promote market growth, and it is estimated that by 2029, the size of the Malaysian telecommunications market will reach 9.07 billion US dollars.

Demand

In Malaysia, there has been a significant increase in consumer demand for high-speed, reliable internet services, driven by multiple factors. According to DataReportal, by the beginning of 2024, the country had 33.59 million internet users, covering almost the entire population, highlighting the huge market demand for internet services. The widespread use of social media, especially the popularity of TikTok, has further increased the demand for mobile data and broadband services, as 28.68 million active users rely on these platforms as their primary source of information and entertainment. In addition, with the rise of online streaming services such as Netflix and YouTube, the demand for high-quality video content and high-bandwidth connections is growing.

At the corporate level, digital transformation has become a mainstream trend in Malaysia's business environment. To adapt to the application of advanced technologies such as cloud computing, the Internet of Things, and big data, enterprises are in urgent need of more advanced communication infrastructure. The impact of the COVID-19 pandemic has accelerated the prevalence of remote work, which has not only changed work patterns but also created a higher demand for stable and secure remote communication solutions.

Supply

To meet the growing demand for bandwidth, Malaysian telecommunications operators are actively investing in network upgrades, including the deployment of 5G technology and the expansion of fiber-optic networks, aiming to enhance network capacity and transmission speeds. A report by MyIX reveals that from 2022 to 2023, the country's demand for internet bandwidth surged by 20%, prompting suppliers to increase their investments and optimize network performance.

In terms of media content production, localization strategies have become key. Media companies are committed to creating content that reflects Malaysian cultural characteristics and social contexts to enhance the appeal to domestic audiences. At the same time, by leveraging emerging technologies such as AR/VR and AI, the media industry is striving to create immersive and personalized user experiences to meet consumers' diverse entertainment needs.

The competitive landscape of the market is also evolving. As the market matures, competition between telecommunications and media companies is becoming increasingly fierce, promoting innovation in products and services, and also triggering price wars that ultimately benefit consumers. It is expected that more mergers and acquisitions will be witnessed in the future, with industry consolidation becoming the norm, aimed at optimizing resource allocation, expanding market share, or exploring opportunities in emerging niche markets.

Service Quality

Excellent service quality has a wide range of positive effects, from improving the user experience to strengthening market competitiveness and generating significant economic benefits and social contributions. By deploying AssistEdge, an artificial intelligence-driven automation solution, telecommunications companies in Malaysia have not only improved internal efficiency and productivity, but also significantly enhanced the quality of customer service, thereby improving the customer experience. This high-quality service has not only consolidated the existing customer base, but has also attracted a large number of new users, greatly enhancing the company's competitiveness in the market.

Digitalization in the Telecommunications & Media Industry

Digital transformation is leading to widespread innovation in Malaysia's social lifestyle and business landscape. In the telecommunications industry, broadband penetration has increased significantly. Data from the Malaysian Communications and Multimedia Commission (MCMC) shows that by the end of 2021, home broadband coverage will have reached as high as 81%, while mobile internet coverage is almost ubiquitous with a penetration rate of 98%.

The rapid development of the Internet of Things (IoT), especially with significant investment from Telekom Malaysia (TM), is making the vision of smart cities a reality. Through close collaboration with local governments, IoT technology is being widely applied to the intelligent monitoring and management of urban infrastructure, from smart lighting to traffic management, all of which demonstrate the beautiful picture of life empowered by technology.

At the same time, the digital transformation in the media industry is not to be underestimated, as the influence of traditional media is gradually being overtaken by online platforms. Statistics from Statista reveal that in 2021, 60% of Malaysians chose online video services as their source of entertainment and information, signaling the advent of the digital media era. Along with this comes the boom in the digital advertising market; according to eMarketer's forecast, digital advertising spending in Malaysia is expected to surge to $680 million in the same year, accounting for half of the total advertising expenditure, indicating a significant shift in marketing strategies.

Top 10 Malaysian Telecommunications & Media Companies on Bursa Malaysia

There are many telecoms & media listed companies in the Malaysian stock market. Below are some of the prominent telecoms & media companies listed in Malaysia, which we have ranked based on their market capitalisation at the time. Please note that the rankings are for reference only and may vary due to stock price movements.

Many of these companies, such as Telekom Malaysia Berhad, are listed on Bursa Malaysia.

CelcomDigi Bhd（6947）

CelcomDigi Bhd is a telecommunications company in Malaysia share market. It provides electronic mobile communications services and wireless Internet services to customers primarily throughout the country. These services include voice, SMS, data plans and services under prepaid and postpaid plans, international roaming, international calling cards and WAP services. As of December 2023, CelcomDigi has 97 percent 4G LTE coverage in densely populated areas and 91 percent LTE-Advanced (LTE-A) population coverage nationwide.

Maxis Bhd（6012）

Maxis Bhd is a telecommunications provider company in Malaysia share market. Its main services include mobile, wireless, fixed, and enterprise services, with most of its revenue coming from mobile and wireless. The company generates revenue through both prepaid and postpaid customers. In enterprise services, in addition to mobile and fixed services, Maxis also offers traditional managed services.

Telekom Malaysia Bhd（4863）

Telekom Malaysia Bhd is the largest telecommunications company in Malaysia. Formerly a national telecommunications company for fixed-line telephone and broadcasting services, it has now developed into the largest fixed-line telecommunications service provider. Its main business scope includes fixed-line telecommunications, fiber optic communications, mobile communications, and pay-TV services.

Axiata Group Bhd（6888）

Axiata Group Bhd is principally engaged in the mobile segment, which provides mobile services and other services including interconnection services, equipment sales, pay-TV distribution services, broadband services and digital business. The Fixed Broadband segment is engaged in broadband and broadcasting services. The Infrastructure segment provides telecommunications infrastructure and related services. The Other segment comprises investment holding companies, financing companies and other operating companies that provide ancillary services, including digital business and fibre.

Time Dotcom Bhd（5031）

Time Dotcom Bhd is a telecommunications service provider that offers domestic and international connectivity, data center, cloud computing, and managed services solutions for the retail market in the entire ASEAN region, catering to the needs of the wholesale and enterprise markets.

Astro Malaysia Holdings Berhad（6399）

Astro Malaysia Holdings Berhad is a leading media company in Malaysia, with principal activities spanning television services, including pay TV, free-to-air TV and online streaming; content production and broadcasting, such as original series, local and international programmes; broadband internet services; and the operation of several radio stations. The company also provides news and entertainment content through digital platforms and is committed to sustainability and social responsibility programmes.

RedTone Digital Bhd（0032）

RedTone Digital Bhd is a digital infrastructure and services provider, offering telecommunications services for data and voice services to the government, enterprises, and small and medium-sized enterprises (SMEs), including Managed Telecommunication Network Services (MTNS) which encompass the construction, maintenance, and operation of large-scale WiFi hotspots, Radio Access Network (RAN) infrastructure, and fiber infrastructure, as well as Industry Digital Services (IDS) that include data center services, providing Internet of Things (IoT) services, cloud services, and applications for enterprises, government, and the healthcare industry, as well as healthcare solutions.

OCK Group Bhd（0172）

OCK Group Bhd operates in the fields of telecommunications network services, green energy and power solutions, trade, mechanical and electrical engineering services, as well as investment holdings. The majority of its revenue comes from telecommunications network services. The company is also involved in the installation of telecommunications hardware and antennas, feed cables, and connectors.

Media Prima Bhd（4502）

Media Prima Bhd is an integrated media company in Malaysia share market. It engages in commercial television and radio broadcasting, publishing, editorial services, the provision of internet-based online services, general media advertising, the provision of advertising space and related production works, the sale of program copyrights, cable and streaming copyrights, content production, property management services, procurement services, and other services related to the media industry.

Star Media Group Bhd（6084）

Star Media Group Bhd is an integrated media company in Malaysia share market. It operates through three divisions: Print, Digital and Events; Broadcasting; and Property Development and Investment. The Print and Digital division is engaged in the printing, publishing and distribution of newspapers and magazines, advertising in print and electronic media, online portals and event management services. The Broadcasting segment operates radio stations.

Conclusion

Under the impetus of various factors such as demand, supply, policies, service quality, and the process of digitalization, Malaysia’s telecommunications and media industry is experiencing robust growth. The sector offers unique opportunities for investment, leveraging the vibrant telecommunications and media companies in malaysia share market to build a balanced investment portfolio. Staying informed about Bursa Malaysia's offerings can help you make better investment decisions.

To seize these opportunities, investors should adopt a cautious strategy, fully utilizing the growth potential of the Malaysian telecommunications and media industry while reducing risks associated with market volatility. A well-structured and diversified investment plan is crucial. With strong market performance and significant potential for innovation, investors must stay informed about changes in the economic and regulatory environment. Take advantage of the opportunities in the Malaysian telecommunications and media industry to enhance your investment portfolio.