Sustainability Statement 2025

TELEKOM MALAYSIA BERHAD

Integrated Annual Report 2025

SUSTAINABILITY STATEMENT: EMPOWERING THE FUTURE TOGETHER

2025 marks an important chapter in TM's sustainability journey. As we advance our aspiration to become a Digital Powerhouse by 2030, we are moving beyond traditional ESG frameworks. Sustainability is no longer treated as a standalone programme at TM. Instead, it is embedded into the way we operate, make decisions and create value. This year, we transitioned from building frameworks to integrating them across strategy, governance and execution, ensuring our growth remains competitive, responsible, resilient and future-ready.

NOR FADHILAH MOHD ALI

Chief Corporate Officer (CCO)

100

SUSTAINABILITY

MESSAGE

Integrated Governance & Strategic Execution

In a strategic move to reinforce sustainability as a core business priority, the Sustainability Division is now consolidated under Group Corporate as a Centre of Excellence (CoE) for sustainability. This central placement reflects our conviction that sustainability must be driven from the heart of the organisation, moving beyond a siloed ESG model. Delivered through interconnected teams across regulatory, risk and business continuity management, strategic communications, branding and partnerships, as well as programme management and execution, Group Corporate now serves as the integrator translating sustainability ambitions into Group-wide action. This structure embeds sustainability into core business decisions and incorporates sustainability-related risks and opportunities into Enterprise Risk Management (ERM), ensuring that major investments, from hyperscale data centres to network modernisation, are guided by sustainability principles from the outset.

Global Standards & Transparency

We have proudly embraced the National Sustainability Reporting Framework (NSRF) this year, aligning our disclosures with global ISSB standards. To ensure a robust transition, we are utilising the available transition reliefs through a phased adoption approach. Our Sustainability Statement 2025 is therefore structured into two (2) key sections:

Part One: Focuses on IFRS-aligned disclosures, where we have identified four (4) climate-related risks and one (1) major opportunity in low carbon revenue streams.

Part Two: Aligns with the Bursa Malaysia Sustainability Reporting Guide (3rd Edition), recognising that our stakeholders value insights that extend beyond standard reporting requirements.

Our Pillars of Impact

A major milestone in our three (3)-year policy cycle was the completion of an enhanced Double Materiality Assessment. Through close engagement with our Board and stakeholders, we identified 14 material matters that influence both our financial performance and impact outcomes. While several titles were refined to reflect the evolving landscape, all 14 matters are now aligned under our Prosperity, Planet and People framework, reinforcing our commitment to position sustainability as a core business driver.

Prosperity

Delivering Innovative & Sustainable Solutions

Under Prosperity, we continue to move beyond traditional boundaries through digital transformation, responsible business practices and strong governance. As we progress towards our Digital Powerhouse 2030 aspiration, sustainability also presents new business opportunities. Sustainable digital solutions are increasingly becoming a key pillar in unlocking new revenue streams. At the same time, we have raised expectations across our value chain by implementing ESG due diligence for new suppliers, ensuring our value chain progresses alongside us.

Planet

Decarbonising Our Footprint

On the Planet, I am pleased to report TM achieved a 34% carbon emission reduction against our 2019 baseline, marking steady progress towards achieving 62% by 2030 and our aspiration of net zero emissions by 2050. Scope 3 disclosures have been expanded to include Category 4 (Upstream Transportation and Distribution), Category 8 (Upstream Leased Assets) and Category 13 (Downstream Leased Assets). While these expanded boundaries introduce greater complexity, our focus remains firmly on strengthening data integrity and accuracy to ensure our transition planning is built on a foundation of trust.

People

Creating Positive Impact

For People, we remain committed to TM's longstanding role as a nation builder. Through community initiatives such as Jangkau Digital TM and TM Future Skills programme with 35 adopted schools, we designed initiatives to bridge the digital divide and equip the next generation with the skills needed to participate in Malaysia's digital economy.

A Legacy of Value

None of this progress would be possible without strong governance. Sustainability oversight is now a permanent agenda at the Board Risk & Investment Committee (BRIC) and 2025 marks the second year that sustainability metrics and targets have been embedded into the KPIs and remuneration of key leadership positions. TM's efforts earned significant recognition this year, being listed as a 3-star lister by UN Global Compact Network Malaysia-Brunei, ranking 7th among 847 companies in the NACGSA Overall Excellence Awards and receiving the Industry Excellence Award for Telecommunications & Media.

Looking ahead, our next journey moves beyond decarbonisation. As we continue strengthening our sustainability disclosures in alignment with global ISSB standards towards full adoption by 2027, we are advancing talent development and inclusivity while embedding sustainability as a core business priority across the organisation. As TM marks 80 years of empowering Malaysia's social and economic progress across generations, we recognise that our responsibility extends far beyond building digital infrastructure. Our ambition is to create lasting value for the nation, by connecting communities, nurturing talent and enabling opportunities that will shape Malaysia's digital future for decades to come.

We are not just building networks, we are Empowering the Future Together.

In 2025, TM is proud to embark on the transition of our Sustainability Statement into the National Sustainability Reporting Framework (NSRF) requirements, aligning with the International Sustainability Standards Board (ISSB) beginning the financial year 2025. This move responds to the Bursa Malaysia announcement, which mandates that the enhanced Listing Requirements "foster the use of IFRS S1 and IFRS S2 as the baseline" to "improve transparency and accountability of sustainability-related risks and opportunities."

We approach this transition with intention to strengthen how we govern, manage and disclose sustainability-related risks and opportunities. We reinforce internal controls, enhance climate risk assessments and improve data governance to ensure our disclosures are reliable and informed decisions. We apply the available transition relief to adopt the requirements in phases while building long-term capability across the Group.

For clarity, our 2025 Sustainability Statement is structured into two (2) parts:

PART ONE

PART TWO

Sustainability-related Financial Information Report

(Aligned to ISSB Standards)

Pages 113 to 148

Impact Materiality

Pages 149 to 251

Aligned with NSRF phased adoption, this section focuses on IFRS S2 Climate-related Disclosures and provides a 'climate-first' view of the financial impacts of climate-related risks and opportunities.

Guided by the Bursa Malaysia Sustainability Reporting Guide (3rd edition), this section addresses other material ESG topics. As part of the S1 General Requirements transition relief, this part emphasises critical matters not covered in the climate-specific disclosures, ensuring a comprehensive view of our broader societal and environmental impacts.

ASSESSING TM's SUSTAINABILITY STATEMENT AND FEEDBACK

Sustainability reporting is an ongoing journey and we continue to strengthen the quality, clarity and relevance of our disclosures each year.

We welcome feedback and concerns on our sustainability performance, initiatives and reporting approach as we move forward. Our open and accessible communication approach supports this progress.

As part of our commitment to continuous improvement, stakeholders may share any sustainability-related feedback at sustainability@tm.com.my

SUSTAINABILITY JOURNEY

OUR PROGRESS

TM adopts a balanced and holistic approach to sustainability. While climate remains a priority under the ISSB-aligned framework, we recognise that our responsibilities extend beyond climate to broader environmental, social and economic impacts. Our sustainability journey continues to evolve through a disciplined focus on transparency, accountability and long-term value creation.

Part 1 of this report outlines our climate-related risks and opportunities in alignment with ISSB standards, while Part 2 expands on the broader pillars of our sustainability strategy, covering other Material Matters across economic, social and environmental impacts beyond climate.

For this reporting year, TM adopts the additional transition relief recommended by Bursa Malaysia in alignment with the NSRF as we progress towards full adoption by 2027. We remain committed to strengthening our internal processes, data governance and reporting capabilities over time.

Guided by our strategies, frameworks and policies, sustainability is embedded across our operations to support responsible growth, deliver value to stakeholders and advance a greener, smarter and more inclusive Digital Malaysia. Our commitment continues to evolve in response to regulatory developments, stakeholder expectations and our ambition to build long-term resilience and value.

Phase 1: Foundation (2019-2022)

Commitment

Established TM's first ESG commitments and targets, and publication of our inaugural TCFD report

Formalised our sustainability foundation from 2019 to 2022 by achieving the following milestones:

• the establishment of our first ESG commitments and targets, marking an important foundational step, providing a clear baseline for integrating sustainability considerations into our business strategy and operations.

• the publication of our inaugural Tasfi Force on Climate-related Financial Disclosures (TCFD) report, strengthening our approach to climate risk governance, scenario analysis and transparency.

  Phase 2: Transition (2023-2025)

  We are here

  Frameworfi & Roadmap

  Activity-based approach to align with TM's core business and value creation

  Strategic Alignment

  • Transitioned our sustainability framework to the Triple Bottom Line (TBL), balancing Prosperity (Profit), Planet and People

  • Conducted an enhanced Double Materiality Assessment (DMA)

During the Transition Phase (2023-2025), TM accelerated the shift from initial commitments to structured execution. We operationalised our three-year Sustainability Framework and Roadmap to embed sustainability into core business functions, strengthen governance, and enhance data quality across the Group. As a committed member of the UN Global Compact Network Malaysia and Brunei (UNGCMYB) since 2023, TM actively upholds the 10 Principles of the UNGC and consistently aligns its performance with the Sustainable Development Goals (SDGs).

In 2025, we further advanced our strategic approach by adopting the Triple Bottom Line (TBL) framework, integrating Prosperity, Planet, and People to promote balanced value creation.

To ensure long-term resilience, we executed an enhanced double materiality assessment that integrates with our Enterprise Risk Management (ERM) framework. This process identified critical sustainability-related risks and opportunities while evaluating TM's broader impacts on the economic, environmental, social and governance.

Phase 3 : Lead with Purpose (2026-2030)

Sustainability as Business Strategy Focusing on sustainability strategic priorities based on five (5) material matters:

Looking ahead, the period from 2026 to 2030 marks our next phase, Leading with Purpose. In this phase, we will:

• Elevate sustainability from operational execution to

  Innovation & Technology

  Customer Experience

  Sustainable Value Chain

  strategic leadership

• Strengthen sustainability as a core imperative of PWR 2030 as we move towards becoming a Digital

  Climate Change

  Community Empowerment

  Powerhouse

  • For details of the materiality assessment, including the approach and process, please refer to page 121.

  • The materiality matrix is presented on page 122.

SUSTAINABILITY AT TM

OUR SUSTAINABILITY FRAMEWORK & GOVERNANCE

Realigning our Sustainability Framework to the 3Ps

SUSTAINABILITY FRAMEWORfi

Building on this governance foundation, we refined the way sustainability is structured and operationalised across the Group. In 2025, we formally adopted the Triple Bottom Line (TBL) approach within our sustainability framework, structured around three (3) core pillars: Prosperity, Planet and People (''3Ps''). This adoption is part of our journey from 'Transition' to 'Lead with Purpose' phase, aligning to our sustainability objectives with our aspirations to become a Digital Powerhouse by 2030.

Under our theme, "Empowering the Future Together," we drive two (2) primary sustainability objectives: 'Enabling Sustainable Growth' for our customers and communities, and 'Ensuring Business Resilience' across TM and our value chain. We anchor these goals in the Triple Bottom Line (Prosperity, Planet and People) and execute them through our 14 material matters.

Our Vision

TO SHAPE A DIGITAL MALAYSIA THROUGH TECHNOLOGY THAT EMPOWERS COMMUNITIES, BUSINESSES & GOVERNMENT

Our Theme

EMPOWERING THE FUTURE TOGETHER

Our Objectives

ENABLE SUSTAINABLE GROWTH

For Customers & the Community

ENSURE BUSINESS RESILIENCE

Within TM & Our Value Chain

Our Pillars

PROSPERITY

PLANET

PEOPLE

1 . Innovation & Technology

Our Material Matters

2.

3.

4.

5.

6.

7.

Customer Experience

Network Stability & Quality Sustainable Value Chain Responsible Communication Cyber Resilience

Good Governance

1. Environmental Management

2. Climate Change

1. Labour Practices & Human

   Rights

2. Learning & Development

3. Health & Safety

4. Digital Inclusion

5. Community Empowerment

Supported SDGs

Key Performance Indicators

Disclosure/Reporting & ESG Score

The Drivers

Systems & Tools

Local & International Standards

Culture & People

Investors, Customers &

Stakeholders

Continuous Improvement

SUSTAINABILITY GOVERNANCE

Our sustainability governance structure begins with Board-level oversight and cascades through the Board Risk and Investment Committee (BRIC), Management Committee (MC), and the Chief Corporate Officer (CCO). This leadership drives action down to our operational teams through seven (7) specialised Sustainability Working Groups (SWGs). This structure establishes clear accountability and reporting lines across all levels of the organisation.

SUSTAINABILITY GOVERNANCE STRUCTURE

Board of Directors (BOD)

Board Risk and Investment Committee (BRIC) Management Committee (MC)

Sustainability Division

as Centre of Excellence Chief Corporate Officer (CCO) (CoE)

SWG 1

Sustainable Solutions

SWG 2

Community Empowerment

SWG 3

Responsible Employer

SWG 4

Data Centre

SWG 5

Sustainable Value Chain

SWG 6

(A) Energy & Carbon

SWG 7

ISSB

Implementation

(B) Waste Management

Reporting to the CCO, the Sustainability Division provides guidance on TM's sustainability-related risks and opportunities while serving as the Secretariat for the SWGs. The roles of each governance structure are described below:

Board

• Provides strategic direction for TM's sustainability efforts

• Approves sustainability targets and monitors progress

• Integrates material matters into TM's vision, mission and strategies

BRIC

• Reviews sustainability strategies and targets prior to decisions made by the Board

• Oversees the progress of Board-approved strategies and targets

• Incorporates sustainability considerations, including climate-related issues into committee discussions

• Evaluates and manages physical climate risks across various functions in the organisation, specifically under the purview of Risk Management

MC

• Implements Board-approved sustainability strategies and targets, including climate-related targets

• Allocates responsibilities, KPIs and resources for achieving targets

• Proposes adjustments to sustainability strategies and targets to the Board as needed

CCO

• Provides the executive oversight and strategic direction on all sustainability-related risks and opportunities, ensuring they align with TM's long-term business goals

• Oversees the SWGs and the Sustainability Division, ensuring the seamless flow of ESG data and the execution of the 14 material matters across the Group

Sustainability Division as Centre of Excellence (CoE)

• Led by General Manager (GM) of Sustainability, the Sustainability Division acts as TM's Centre of Excellence for sustainability

• Provides expertise and guidance on sustainability-related risks and opportunities

• Coordinates cross-functional initiatives and streamlines the flow of ESG data across the Group

SWGs

• Comprise relevant functional team members across the Group

• Implement SWG-related tasks according to targets and KPIs

• Report and recommend actions to the CCO and MC

• Regularly update the CCO on the status of various initiatives, targets and outcomes

INTEGRATION OF SUSTAINABILITY INTO BOARD GOVERNANCE

Sustainability considerations are embedded in all Board discussions and decisions, as it is integral to the Board agenda. It also features prominently on the BRIC agenda, highlighting its importance across all areas of Board deliberation.

Led by its Chairman the BRIC reviews and manages climate-related risks on a quarterly basis. The GCFO, Chief Network Officer (CNO), and Executive Vice President (EVP) TM Global share responsibility for overseeing our carbon emission reduction targets.

This governance structure is supported by a set of policies and frameworks that guide how sustainability commitments are implemented across the Group.

For more information on sustainability governance, please refer to page 123.

SUSTAINABILITY AT TM

COMMON POLICIES

We drive consistent sustainability execution through robust policies and a commitment to sustainable and ethical business practices. Our key policies include:

TM Sustainability Policy

Governs how TM conduct business responsibly, ensuring we create long-term value for all stakeholders through ethical and sustainable practices

First-Tier Financial Limit of Authority (LoA)

The Board of Directors delegates specific financial authority limits to TM officers, enabling efficient decision-making while maintaining robust internal controls

TM Sustainability Framework

Establishes a structured approach around three (3) core pillars, Prosperity, Planet and People (3Ps). The BRIC endorses and governs this framework, maintaining rigorous oversight of our sustainability strategy and its execution across TM

Business Initiative Governance Framework Defines the controls and compliance standards governing all business initiatives and projects. It ensures that process owners execute Board-approved strategies within established risk and operational boundaries

Group Communication Policy

Governs all corporate messaging to ensure consistency and strategic alignment across the Group.

• Internal and External Communications Policy & Best Practices: Sets clear principles for internal and external communications to provide accurate, compliant information while protecting TM's brand

• Crisis & Media Communication: Establishes protocols for managing sensitive issues and public-facing responses

TM Data Governance Policy & Framework (TMDGPF)

Promotes Group-wide awareness, accountability and the adoption of best practices in data governance

Procurement Policy and Processes

Ensures transparent, efficient and compliant acquisition of goods and services

Privacy Notice

Serves as information for customers and/or prospective customers of TM and its group of companies on the collection, processing and protection of personal data in compliance with the Personal Data Protection Act 2010 (PDPA 2010)

TM Business Continuity Management (BCM)

Sets and enforces minimum BCM requirements across all TM divisions and subsidiaries to ensure continuity of critical functions and essential services during any crisis or disruption including climate-related events

To learn more, scan the QR code for the full List of Policies and Guidelines or visit our List of Policies and Guidelines at https://www.tm.com.my/sustainability/policies-guidelines

LIST OF MATERIAL MATTERS

The TM Sustainability Policy has mandated a three (3)-year cycle of materiality assessment. In 2025 we conducted an enhanced double materiality assessment to align with evolving sustainability reporting expectations including the adoption of IFRS Sustainability Disclosure Standards. This assessment evaluates the financial implications of sustainability-related risks and opportunities, as well as TM's impacts on the economy, environment and society.

Ma

Pro

M1

M2 M3 M4 M5 M6 M7

Pl

M8 M9

As a result of the enhanced double materiality assessment, we reassessed and refined a few material matters with the intention to sharpen the strategic focus and resource allocation, as summarised below:

Pe M10 M11

M12 M13

M14

We prioritise each material matter based on its strategic alignment to TM's Digital Powerhouse 2030 aspiration. Other considerations include financial and non-financial implications, risk exposure, regulatory expectations and potential to create sustained value for shareholders and stakeholders. By linking every priority level to a defined time horizon, we translate material matters into clear action pathways, strengthen accountability across organisation and enable measurable outcomes that support resilient and responsible growth, as described below:

Description

Action plan

1 Priority 1

• High priority with potential opportunities

• Increase market share and revenue innovation

• Strategic action plan to be established for short- (<1 year), medium- (2-3 years) and long-term (>4 years)

• Amplifying advocacy strategy

2 Priority 2

• Operational efficiency and cost reduction

Strategic action plan to be established for short- (<1 year), medium- (2-3 years) and long-term (>4 years)

3 Priority 3

• Risk mitigation and license to operate

Long-term (>4 years) action plans to be established

For more information on the materiality assessment, please refer to pages 121 to 123.

SUSTAINABILITY AT TM

OUR SCORECARD

We embed sustainability measures into our Corporate Scorecard through clearly defined, time-bound targets and qualitative goals for emerging focus areas, in order to drive accountability. For the second consecutive year, we formally integrated sustainability metrics into the KPIs of our pivotal positions, directly linking environmental and social performance to executive remuneration.

This approach translates our sustainability ambitions into actionable targets across the leadership team, aligning our efforts with the goal of becoming a Digital Powerhouse by 2030.

Measure

Pivotal Positions carrying the KPI

Our Target

Status

The following table details our 2025 Corporate Scorecard, outlining the specific targets and metrics we use to measure our sustainability performance:

Prosperity

Performance 2025

1)

S&P Global ESG

Scores

GCEO, CCO

57

60

Not achieved1

2) Sustainability as a

Business Use Cases

EVP TM One, EVP TM Global

and Chief Commercial Officer Consumer & Business (Unifi)

Minimum two (2)

Use Cases completed by each LOB

Two (2) Use Cases

completed by each LOB

Achieved

3) Management Review

of Anti-Bribery Initiatives

All Pivotal

Positions and all GCEO Direct reports

Minimum three

(3) Management Reviews per division

Three (3)

Management Reviews per division

Achieved

4)

National Corporate

Governance Sustainability Award (NACGSA)

CCO, Group Company

Secretary

Ranked 7th

Ranked 10th

Surpassed

Planet

5) Carbon Emissions Reduction

GCFO, CNO,

EVP TM Global

34%

34%

Achieved

People

6)

Women in Senior

Management

CHCO

36%

35%

Surpassed

7)

Sustainability

Competency Programme and Maturity Assessment

All Pivotal Positions

More than 90%

80%

Surpassed

8)

Number of TVET

Participants Trained for 2025

CHCO

416 TVET

participants trained for 2025

375 TVET

participants trained for 2025

Surpassed

Note:

1 Although the 2025 score of 57 did not meet our target of 60, it reflects an improvement from 55 in 2024, demonstrating continued progress in strengthening our ESG performance amid increasingly stringent assessment criteria. Nevertheless, we hold the highest rating among local industry peers. We noted on the improvement needed and areas of better disclosures.

For more information on our awards and achievements in 2025, please refer to the Awards & Accolades section on pages 12 to 13.

OUR ESG RATINGS

As one (1) of the drivers in our sustainability journey, we recognise the increasing importance of strong ESG performance within our business strategy and evolving stakeholder expectations. We honour our ESG ratings as an independent benchmark that helps us assess how the market evaluates our sustainability performance and identify areas for enhancement.

Measure

2023

2024

Review of 2025 achievements

In 2025, our ESG ratings demonstrate steady progress in the maturity and effectiveness of our sustainability approach and performance, as shown in the table below:

2025

S&P Global ESG

46/100

55/100

57/100

Improvement on our disclosures and

sustainability initiatives

FTSE4Good

3 out of 4 stars

3 out of 4 stars

4 out of 4 stars The highest achievement

FTSE Russell

3.6

3.6

3.8

Improvement on our disclosures

relating to Sustainable Value Chain and Environmental Management

MSCI ESG Ratings

BBB

A

A

Rating maintained

CDP

B

C

C

Priority area for improvement in 2026

especially in the disclosures of Scope 3 GHG and adoption of plastic reduction practices

In addition to our ESG ratings, TM received recognition as a 3-Star Lister under the inaugural UN Global Compact Network Malaysia & Brunei ESG Select List, in the following areas:

ESG Trailblazer

Launched the first AI-enabled Global Business Services Centre on Malaysia's East Coast, creating high-value digital jobs and driving inclusive regional development

ESG Breakthrough Innovation Deployed the Smart Distributed Radio Access Network (D-RAN) in Putrajaya, a pioneering model that lowers the environmental footprint through network sharing

Purposeful Partnership Developed the Smart Urban Forestry, an AI tool that collects forest data 96% faster and more accurately

This recognition reflects our ongoing efforts in embedding sustainability across strategy, innovation and partnerships, to deliver long-term value for our stakeholders.

Further strengthening this achievement, TM was honoured at the UNGCMYB Forward Faster Sustainability Awards 2026, where our Chief Corporate Officer received the Forward Faster Chief Sustainability Officer Award for Large Corporate. This accolade reflects the leadership, strategic clarity and disciplined execution that continue to shape TM's sustainability journey.

It reinforces our resolve to accelerate responsible growth in line with our aspiration to become a Digital Powerhouse by 2030, where sustainability, innovation and performance are embedded across our strategy to deliver lasting value and impact for Malaysia.

SUSTAINABILITY AT TM

OUR CONTRIBUTIONS TO UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (UN SDGS)

As a responsible organisation, we recognise our duty to contribute meaningfully to the UN SDGs. We integrate sustainability into our operations, prioritising environmental stewardship, social well-being and strong governance. Through focused initiatives and continuous improvement, we aim to create positive, lasting impact for our stakeholders and support broader national and global sustainable development efforts.

SDG

SDG Targets

Related Sections

Initiative/Programme Objectives

No Poverty

Zero Hunger

1.4 Equal Rights to Economic Resources & Basic Services

1.a Mobilisation of Resources to Implement Programmes to End Poverty

2.1 Ensure Access to Safe, Nutritious

• Usahawan Digital TM Programme

• TM Graduate Programme (TMGP)

• Rural Empowerment and Community Help (REACH) 2.0

• Program Cahaya Ramadan

  • Empowering B40 entrepreneurs with digital tools and skills

  • Building a high-performing young talent pipeline for future excellence

  • Empowering communities with digital entrepreneurship skills

  • Supporting communities with Ramadan aid and essentials

    & Sufficient Food

    
    
    

    Good Health &

    Well-Being

    
    
    

    Quality Education

    
    
    

    Gender Equality

    3.4 Promote Mental Health & Well-

    Being

    3.a Strengthen Implementation of Tobacco Control

    3.d Strengthen Capacity for Health Risk Management

    1. Equal Access to Affordable Technical, Vocational & Higher Education

    2. Increase Skills for Employment & Entrepreneurship

    3. Eliminate Gender Disparities in Education

    4.7 Education for Sustainable Development

    4.a Build and Upgrade Education Facilities

    1. End All Forms of Discrimination Against Women

    2. Eliminate Violence & Harassment

• GCEO Body Mass Index (BMI) Challenge

• TM health and well-being app

• Well-being webinars

• TM Smoke-Free Workplace Policy

• TM's Occupational Safety and Health Management System (OSHMS)

• Future Leaders Scholarship and Young Leaders Scholarship

• TVET MADANI

• Vendor Capacity & Capability Development Programme

• Usahawan Digital TM Programme

• ASPIRE Programme

• Employee Sustainability Capability Programmes

• Sekolah Angkat Malaysia MADANI

• Multimedia University

• TM Responsible Employer Commitment

• Zero-tolerance towards all forms of harassment (sexual or non-

• Promoting employee health and wellness

• Ensuring employee access to digital wellness tools

• Providing monthly holistic well-being webinars

• Ensuring a smoke-free workplace in compliance with Malaysian law

• Implementing a framework to manage workplace safety and health risks

• Delivering education financial assistance to deserving students

• Strengthening TVET education through facilities, funding and training

• Enhancing vendor competitiveness, resilience and technical capability

• Equipping B40 entrepreneurs with digital tools and skills

• Preparing high potential women for senior leadership roles

• Building human rights capabilities through the UN Global Compact Accelerator

• Strengthening senior leaders' understanding of the Sustainability Framework

• Building sustainability awareness among non executives

• Equipping students and B40 communities with STEM training and digital learning hubs

• Providing a tertiary education arm, cultivating future-ready digital talent

• Integrating responsible labour practices across TM's operations

• Implementing statement to strict zero-tolerance towards

  
  
  

  Against Women

  sexual)

  • Grievance and Escalation Reporting Process

  • Employee Training and Awareness of Discrimination and Harassment

    harassment.

  • Delivering a formal channel to address discrimination and harassment

  • Providing regular training on preventing discrimination and harassment

Clean Water & Sanitation

Affordable and Clean Energy

Decent Work and Economic Growth

110

5.b Enhance Use of Technology to Empower Women

6.6 Protect Water-Related Ecosystems

7.2 Increase the Share of Renewable Energy

7.2 Double the Rate of Energy

Efficiency

7.b Expand Infrastructure and Upgrade Technology for Modern Energy Services

light sequences

Reduced Inequalities

10.3 Ensure Equal Opportunity & Reduce Discrimination

• Jangkau Digital Programme in Kampung Mukut, Pulau Tioman

• TM-managed National Information Dissemination (NADI) centres

• TM Responsible Employer Commitment

• House call assistance service for persons with disabilities (PwD) and priority lane for elderly, PwD and pregnant customers

  • Executing a smart eco-village that weaves together digital connectivity, social and environmental care

  • Supporting MCMC's programme to improve digital reach to rural communities

  • Integrating responsible labour practices across TM's operations

  • Enhancing service inclusivity with accessible support for customers with additional needs

Sustainable Cities and Communities

Responsible Consumption and Production

11.2 Safe, Affordable, Accessible & Sustainable Transport

11.6 Reduce Environmental Impact from Cities

11.c Support Sustainable & Resilient Building Construction

12.2 Sustainable Management &

Efficient Use of Natural Resources

12.7 Promote Sustainable Public Procurement

• TM EZFleet

• Future-ready Digital Infrastructures e.g Data Centres, Smart D-RAN

• Sustainable Digital Solutions e.g Smart Urban Forestry, STARS

• Green Data Centre

• Energy Efficiency initiatives

  Sustainability Working Group 6A

• Technical Specifications

  • Implementing a car-sharing platform to optimise vehicle usage

  • Encouraging adoption of electric vehicles (EVs)

  • Building high-performance, scalable and sustainable infrastructure

  • Empowering customers and businesses to progress responsibly

  • Certifying TM's Data Centre with LEED, GBI, GreenRE, ISO EMS, ISO EnMS

  • Ensuring Power Usage Efficiency (PUE) between 1.4 and 1.8

  • Improving energy efficiency and reducing electricity

    consumption across operations

  • Integrating sustainability clauses in technical

specifications

Climate Action

Life Below Water

• Outlining TM's commitment to a Net Zero 2050 pathway focusing on reducing Scope 1, 2 and 3

• Building sustainability awareness among non executives

• Standardising TM's Single Use Plastic Guideline

• Executing a coral rehabilitation study

• Incorporating submarine cable construction controls, pollution-prevention measures and ecological protection

  Life On Land

  1. Conserve Terrestrial & Freshwater Ecosystems

     • Biodiversity conservation through forest restoration

     • Turning ecological liabilities into resilient forest ecosystems

  Peace, Justice and Strong Institutions

  Partnerships for the Goals

  16.3 Promote the Rule of Law & Ensure Equal Access to Justice

  1. Substantially Reduce Corruption & Bribery

  2. Develop Effective, Accountable & Transparent Institutions

  3. Ensure Responsive, Inclusive & Representative Decision-Making

  16.10 Ensure Public Access to Information & Protect Fundamental Freedoms

  16.b Promote and Enforce Non-Discriminatory Laws & Policies

  1. Enhance Global Cooperation on Science, Technology & Innovation

  2. Promote Environmentally Sound Technologies

  17.14 Enhance Policy Coherence for Sustainable Development

• Ethics Line, accessible 24/7

• Whistleblowing Policy

• Integrity Pledge

• Ethics Line, accessible 24/7

• Whistleblowing Policy

• Integrity Pledge

• Anti-Bribery Management System (ABMS)

• ABMS Annual Audit by SIRIM QAS, an independent third-party auditor

• TM Integrated Annual Report 2025

• Women on the Board, Senior Management and Workforce

• Building trust, transparency and accountability with all stakeholders

• Employee Training and Awareness on Discrimination and Harassment

• Multimedia University

• Invested in TM Research & Development

• Solar Power Purchase Agreement (SPPA) with GENTARI

• SPPA with Network Facility Provider (NFP)

• TM Sustainability Policy

  • Guiding responsible conduct, promoting sustainability and building stakeholder confidence

  • Ensuring every action upholds our values and legal standards, with zero tolerance for corruption

  • Fostering transparency in corporate financial and nonfinancial reporting

  • Promoting diverse workforce in workforce and decision-making levels

  • Upholding trust and protecting TM's reputation through responsible, clear and consistent communication

  • Providing regular training on preventing discrimination and harassment

  • Providing a tertiary education arm, cultivating future-ready digital talent

  • Advancing TM's R&D arm, delivering innovative digital solutions

  • Supplying renewable energy across our facilities, including off-grid mobile base stations

  • Enabling growth and ensuring business resilience are aligned to UN SDGs

    
    
    

    SUSTAINABILITY AT TM

    SUSTAINABILITY HIGHLIGHTS

    
    
    

    April May

    • TM activates relief measures for customers and communities affected by Putra Heights fire incident

July

• TM introduces digital entrepreneurship programme for over 2,000 B40 MSMEs

  September

• TM and Scicom form strategic partnership to deliver world class, AI-powered customer experience

• TM and NCT Group expand partnership to deliver smart, sustainable industrial parks across Malaysia

• TM joins Candle submarine cable system consortium to connect Malaysia and ASEAN countries to Japan

• TM unveils new open cable landing station to boost regional connectivity

• Unifi Mobile offers over 32k free prepaid SIM cards for Malaysian Hajj pilgrims

• TM named official partner of the national sepak takraw team, reaffirming commitment to Malaysia's sports development

  August

• TM strengthens national talent pipeline with RM25 million through Yayasan TM Future Leaders Scholarships 2025

• TM showcases AI and digital leadership at ASEAN AI Summit 2025

• Jangkau Digital TM reimagines Kampung Mukut, Pulau Tioman as Malaysia's first smart eco-village, driving rural digital inclusion and nation-building

• Unifi Mobile launches Malaysia's first postpaid plan with Netflix

• TM adopts 35 schools under Sekolah Angkat Malaysia MADANI, strengthening commitment to nation-building under the TM Future Skills programme

• Unifi Business launches IMPAK BIZ to accelerate MSME

  digital readiness

• TM celebrates Hari Kebangsaan and Hari Malaysia 2025 with 'Helo Malaysia', a mission to empower the neurodivergent community in Malaysia

  November

• TM One and SIRIM Academy partnership boosts cybersecurity and AI governance in Malaysia

Our 2025 disclosures mark a pivotal milestone in our commitment to transparency. Driven by financial materiality, Part 1 outlines the foundation of our journey to align with the National Sustainability Reporting Framework (NSRF).

Inside this section

Basis of Preparation 114

Overview of the Group and Value Chain 116

Reporting Boundary 119

Judgements and Measurement Uncertainties 120

Materiality Assessment 121

Sustainability Governance 123

Climate-Related Risfis and Opportunities 126

Other Climate-Related Disclosures 140

Events After the Reporting Period 146

Additional Disclosures Based on MMLR 147

(ALIGNED TO ISSB STANDARDS)

Risks

The following diagram serves as the navigator for our sustainability statement in Part One, illustrating the interconnected structure of the disclosure in alignment with ISSB standards. To ensure full transparency, each section is cross-referenced to specific Notes found throughout Part One, where detailed explanations of data and methodologies are provided.

Group Structure and Reporting Boundaries

Basis of Preparation

(Note 1)

Overview of the Group and Value Chain

(Note 2)

Reporting Boundary

(Note 3)

Overview of Process and Governance

Materiality Assessment

(Note 5)

Sustainability Governance

(Note 6)

Climate-related Risks and Opportunities (Note 7)

1

Physical risk - Extreme weather events (Note 7.1)

Increasing frequency and severity of weather events such as floods, storms, landslides, heatwaves and chronic sea-level rise can damage TM Group's infrastructure and assets, disrupt operations, cause prolonged service outages and escalate preventive and recovery costs.

2

Physical risk - Water consumption and management risk (Note 7.2)

Rising water consumption for data centres may increase investment costs in alternative or more efficient cooling technologies and infrastructure.

3

Transition risk - Regulatory (Note 7.3)

Evolving climate-related regulations both directly and indirectly impact TM Group's energy and compliance cost.

4

Transition risk - Technology (Note 7.4)

Shifting towards low-carbon solutions exposes TM Group to technology and ecosystem risk arising from immature technologies, skills gaps and national decarbonisation dependencies.

1

Low-carbon products, services and solutions (Note 7.5)

TM Group can expand market reach and unlock new revenue streams through low-carbon products, services and solutions, which directly or indirectly contribute to sustainable practices compared to conventional alternatives.

Other Climate-related Disclosures

TM Group's Decarbonisation Strategy Climate Scenario Analysis

(Note 8.1) (Note 8.2)

Events after the Reporting Period (Note 9)

1. BASIS OF PREPARATION

1.1 Compliance with IFRS Sustainability Disclosure Standards

Opportunity

Judgements and measurement uncertainties (Note 4)

[IFRS S1.72]

The sustainability statement of Telekom Malaysia Berhad ("TM") and its subsidiaries ("the Group" or "TM Group") has been prepared in accordance with the IFRS Sustainability Disclosure Standards as issued by the International Sustainability Standards Board (ISSB), in compliance with Bursa Malaysia's Main Market Listing Requirements aligned with the National Sustainability Reporting Framework (NSRF). Additional information required to be disclosed under the Main Market Listing Requirements (MMLR) has been included in pages 147 to 148 of this report.

Disclosure topics in the Sustainability Accounting Standards Board (SASB) standards have been referred to and considered when preparing this statement. Refer to Note 5 on page 121 for further information on how the SASB Standards disclosure topics have been considered in the materiality assessment process.

1.2 Connectivity with financial statements

[IFRS S1.20, IFRS S1.22, IFRS S1.24, IFRS S1.30(b)(c), IFRS S1.31, IFRS S1.B38, IFRS S2.10(d)]

This sustainability statement has been prepared for TM Group and should be read in conjunction with TM Group's consolidated financial statements. These financial statements are prepared in accordance with MFRS Accounting Standards, IFRS Accounting Standards and the requirements of the Companies Act 2016 in Malaysia. This report covers the financial year ended 31 December 2025, aligned with the reporting period of the related consolidated financial statements.

TM Group defines time horizons based on when sustainability-related risks and opportunities are reasonably expected to occur. These time horizons which guide strategic decision-making are categorised as follows:

1

Short-term

Up to 2026

2

Medium-term

Up to 2028

3

Long-term

More than 2028

We apply different time horizons in assessing climate-related physical risks as part of our climate scenario analysis. Further information on the respective time horizons is provided in Note 8.2 Climate Scenario Analysis.

The sustainability-related financial disclosures cover the same reporting entity as the consolidated financial statements, comprising TM Group and our subsidiaries. In preparing these disclosures, we have assessed our own operations and value chain, which includes a joint venture and an associate.

All disclosures are presented in Malaysian Ringgit (MYR) as the presentation currency, even though the Group operates in other jurisdictions with different currencies. Unless specified otherwise, all amounts are rounded to the nearest million.

For more information on Note 8.2, please refer to page 141.

1.3 First-time adoption of IFRS Sustainability Disclosure Standards

[IFRS S1.E1, IFRS S1.E2, IFRS S2.C1, IFRS S2.C3]

TM Group is reporting under the IFRS Sustainability Disclosure Standards for the annual reporting period ended on 31 December 2025, marking our first year of adoption. For the reporting period beginning 1 January 2025, the Group has applied the following standards:

IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information ("IFRS S1")

IFRS S2: Climate-related Disclosures ("IFRS S2")

The IFRS Sustainability Disclosure Standards provide certain transition reliefs to entities adopting it for the first time. In addition, Bursa Malaysia's Main Market Listing Requirements provide additional transition reliefs1 for listed issuers. TM Group has applied the following transition reliefs in our first annual reporting period:

1

Relief from the requirement to disclose comparative information

2

Relief from disclosing Scope 3 greenhouse gas (GHG) emissions

3

Relief from reporting information about sustainability-related risks and opportunities beyond climate-related risks and opportunities

While this statement focuses solely on TM Group's climate-related risks and opportunities under financial materiality, we have also disclosed our ongoing efforts to address broader sustainability-related impacts, in Part 2 of our Sustainability Statement.

For more information on part 2 of our sustainability statement, please refer to pages 149 to 251.

Note:

1 "Guidance Note 11A: Saving and Transitional Provisions for Sustainability Statement" published by Bursa Malaysia on 31 December 2024

SUSTAINABILITY-RELATED FINANCIAL INFORMATION REPORT 2025

(ALIGNED TO ISSB STANDARDS)

Amendments that have been issued but not yet effective

Certain new amendments to sustainability standards have been published but are not mandatory for 31 December 2025 reporting periods and have not been adopted by the Group, namely the IFRS S2 'Amendments to Greenhouse Gas Emissions Disclosures' (effective 1 January 2027).

In summary, the amendments to IFRS S2:

1

Clarify that entities are permitted to limit the measurement and disclosure of Scope 3 Category 15 GHG emissions to financed emissions as defined in IFRS S2

2

Remove the requirement to use the Global Industry Classification Standard to disaggregate information about financed emissions, and instead, allow the use of a classification system that enables the entity to provide useful information about its exposure to climate-related transition risks

3

Clarify that the jurisdictional relief allows entities to use an alternative method to the GHG Protocol if required by their jurisdiction, applies to an entity either in whole or in part

Provide a jurisdictional relief that applies to an entity either in whole or in part, from using Global Warming Potential values from the latest Intergovernmental Panel on Climate Change (IPCC) Assessment Report when converting GHG emissions to CO2 equivalent values

4

None of these are expected to have a significant effect on the sustainability statements of the Group.

For more information on additional disclosure required under the MMLR, please refer on pages 147 to 148.

2. OVERVIEW OF THE GROUP AND VALUE CHAIN

2.1 Overview of TM Group

TM Group's key business activities

[IFRS S1.32, IFRS S2.13(b)]

TM Group has an extensive operational footprint in the telecommunications sector across Malaysia and internationally, serving the Business-to-Consumer (B2C), Business-to-Business (B2B) and Carrier-to-Carrier (C2C) segments. In addition to these segments, the Group's activities also include others/shared services. These activities contribute an immaterial proportion of consolidated revenue and do not represent our principal business segments (see 'Other activities').

Business-to-Consumer (B2C) Business-to-Business (B2B) Carrier-to-Carrier (C2C)

Unifi provides households and individuals with broadband, mobile and lifestyle services.

Unifi Business offers digital tools and resources to empower MSMEs, boost productivity, expand market reach and drive digital transformation.

TM One is the business solutions arm of TM, delivering integrated digital solutions for enterprise and Government customers, including industry-specific solutions, smart services, Private 5G and cybersecurity platforms.

Credence is the National Sovereign cloud provider offering analytics, Artificial Intelligence (AI) and Software-as-a-Service (SaaS) solutions for Enterprise Management and Applications.

TM Global delivers wholesale connectivity services to domestic and international carriers, leveraging TM's extensive nationwide fibre and submarine infrastructure.

For more information on TM's coverage, please refer to pages 16 to 19.

Our key business activities, geographical presence and contribution to revenue by business cluster and geographical location are illustrated below:

Revenue by business cluster (%)

Business-to-Consumer (B2C)

48%

Carrier-to-Carrier (C2C)

28%

Business-to-Business (B2B)

23%

Others/Shared Services

1%

The Group's strategy and sustainability-related goals

Aligned with our Pioneer, Win, and Revitalise (PWR) 2030 aspiration, we continue to advance sustainability as a strategic business imperative. During the year, we have aligned our initiatives with the Triple Bottom Line (TBL) framework, anchored on the three (3) pillars of Prosperity, Planet, and People. In line with the adoption of the IFRS Sustainability Disclosure Standards, we expanded our focus to encompass sustainability-related risks and opportunities beyond sustainability impacts on the environment and society, as identified through our enhanced double materiality assessment described in Note 5 of this report.

Prosperity

Innovative and sustainable solutions to create longterm value.

Expected outcome

Sustainable product and growth in low-carbon revenue stream.

Revenue by geographical location (%)

Malaysia

89%

Other countries

Planet

Environmental stewardship towards achieving net zero.

Expected outcome

Reduction in carbon emissions towards net zero by 2050.

11%

Notes:

1 Total revenue includes inter-segment revenue arising between the Group's B2B and C2C operations amounting to RM162.3 million, which is eliminated on consolidation for financial year 2025 as described in Note 42 of the Group's financial statements for the year ended 31 December 2025.

2 The Group's revenue from other countries is not further segregated as no individual overseas country contributed more than 10.0% of the consolidated operating revenue.

The revenue disclosed represents the percentage contribution from external customers for each business activity. Further details can be found in Note 42 of the Group's financial statements for the year ended 31 December 2025.

The Group's other activities

[IFRS S1.32]

Beyond our key business activities, we are also involved in operations, which are not significant to the overall business and do not form part of TM Group's principal activities. This includes activities of subsidiaries that do not fall under the abovementioned business segments, including University Telekom Sdn Bhd which manages and administers Multimedia University (MMU), representing TM's education arm.

Note 3.1 outlines how our entities, assets and operations are included within the sustainability reporting boundary.

For more information on Note 3.1, please refer to page 119.

People

Positive impact for Warga TM and the community that we serve through inclusive and sustainable nation-building initiatives and efforts.

Expected outcome

Equipping our people with the right skills while addressing the 'just transition' to accelerate our sustainability performance.

Our sustainability aspirations aligned with PWR 2030 are currently being developed, with further details to be disclosed in future reports.

For more information on sustainability journey, framework and governance, please refer to pages 103 to 106.

SUSTAINABILITY-RELATED FINANCIAL INFORMATION REPORT 2025

(ALIGNED TO ISSB STANDARDS)

2.2 Our value chain

[IFRS S1.2, IFRS S1.B5]

We rely on a wide range of stakeholders across our value chain to develop and deliver our products and services. This includes end customers, employees, shareholders and investors, Government and regulators, key suppliers, business partners, media, communities and labour unions.

The illustration below summarises TM Group's key upstream and downstream value chain relationships:

TM Group's Value Chain

Upstream

The Group

Downstream

Raw Materials

Suppliers

Own Business Activities

Use of Services and Products

Disposal and Circularity

Raw materials

utilised in the Group's

technology and

products

• Network

  equipment

• IT hardware and software

• Tower infrastructure

• Outsourced technical support

Business-to-

Consumer

(B2C)

Use of broadband,

mobile data and entertainment services

Business-to-

Business

(B2B)

Enterprise use of

cloud, data centres and managed network services

Carrier-to-

Carrier

(C2C)

• Disposal and

  recycling of IT equipment,

  including servers, routers and switches

• Collecting, refurbishing and reselling of used equipment

• Responsible

Use of international e-waste gateway, submarine processing cables and global for end-of-life connectivity services equipment

TM Group has other business relationships, primarily through our investments in the associate and joint venture, which are part of our value chain.

3. REPORTING BOUNDARY

3.1 Reporting boundary (excluding GHG emissions)

Reporting entity

[IFRS S1.20, IFRS S1.B38]

The entities, assets and operations (referred to as the 'reporting entity') included in this sustainability statement are the same as those included in TM Group's 31 December 2025 financial statements, excluding the Group's operations outside Malaysia unless otherwise stated. We continue to strengthen data collection for our international operations, with related disclosures expected to be provided in future reporting periods.

The reporting entity and the extent of sustainability-related information considered and included in this consolidated sustainability report are summarised below:

TM Group

Refer to Note 50 in the financial statements for further information on the list of subsidiaries under TM Group.

Leased assets (the Group is lessee)

The Group leases various assets, including telecommunications network, lands and buildings. These leases are recognised as right-of-use (ROU) assets with corresponding lease liabilities from the commencement date - the point at which the leased asset becomes available for use.

Refer to note 2(m)(i) in the financial statements for further information.

All sustainability information relating to TM Group and leased assets (where the Group is a lessee) is reported as part of the Group's consolidated reporting boundary.

There were no acquisitions or disposals during the current reporting period that resulted in changes to the consolidated reporting boundary.

Value chain

TM Group also has entities (including investments in an associate and joint venture), activities, resources and relationships that form part of our value chain. These have been considered in assessing the sustainability-related risks and opportunities of the Group. In the current reporting period, all reported metrics relate to the Group's own operations, except for GHG emissions, which also incorporate elements of the value chain.

3.2 Reporting boundary for GHG emissions

[IFRS S2.29(a)(ii)(iii), IFRS S2.B26(a), IFRS S2.B27]

Organisational boundary

We use the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (2004) (the 'GHG Protocol') to measure GHG emissions, unless otherwise stated by IFRS S2. We use the GHG Protocol Corporate Value Chain Standard 2011 ('Scope 3 Standard') to define the 15 Scope 3 categories as part of the requirement to disclose Scope 3 GHG emissions.

Our reporting boundary for GHG emissions includes our organisational boundary and operational boundary, excluding the Group's operations outside Malaysia, as well as our network towers (mobile operations) and chilled water purchased for district cooling, due to limitations in data availability. The Group is progressively strengthening data collection for our international operations, network towers, as well as purchased chilled water, and expects to provide related disclosures in future reporting periods.

The operational control approach is applied to establish our organisational boundary for emissions. We believe that the use of the operational control approach is the most appropriate method to measure our GHG emissions, as this approach best reflects how emissions are managed and controlled across our operations.

There were no acquisitions and disposals in the current reporting year that will be impacting the GHG emissions reporting boundary.

Operational boundary

Direct GHG emissions from sources that are owned or controlled by businesses and operations within our organisational boundary are reported as Scope 1 GHG emissions. GHG emissions from the generation of purchased electricity consumed by these businesses and operations are reported as our Scope 2 GHG emissions.