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KUALA LUMPUR: Telekom Malaysia Bhd (TM) posted a higher revenue of RM12.26 billion for the financial year ended December 31, 2023 (FY23) from RM12.1 billion posted in FY22, propelled by the strong performance of Unifi and TM Global. Specifically, Unifi’s fixed broadband subscriptions experienced a 3.1 per cent growth, reaching 3.13 million, while TM Global’s revenue grew from heightened demand for domestic and international data services. The group’s earnings before interest and tax (EBIT) remained flat at RM2.09 billion in FY23 due to higher operational costs. Meanwhile, the group’s net profit rose 63.6 per cent from RM1.14 billion to RM1.87 billion due to a lower net finance cost and tax impact. Capital expenditure (CAPEX) in FY23 stood at RM1.9 billion, or 15.9 per cent of its revenue. These investments aimed to expand the group’s network infrastructure nationwide and regional submarine cable system. TM declared a 2nd interim dividend and final dividend totalling 15.5 sen per share, amounting to approximately RM594.9 million, demonstrating its commitment to delivering shareholder value. TM group chief executive officer Amar Huzaimi Md Deris said TM has sustained its performance amidst challenging regulatory landscapes, heightened competition, and evolving market dynamics. “Our convergence solutions, paired with attractive packages, have continued to appeal to our customers, reinforcing our position as the only fixed-mobile convergence with quad-play in Malaysia. “The ongoing expansion of our nationwide fibre coverage and enhancing our data and network infrastructure have also contributed to our growth. “We remain committed to promoting digital inclusivity and wider digital adoption while addressing the evolving needs of our domestic and international customers,” said Amar in a statement. He said 2023 marked the completion of TM’s initial three-year transformation phase, during which the group further solidified its position in the local and global telecommunication landscape. “Advancing into the next level of our transformation journey, we are now focused on evolving into a Digital Powerhouse by 2030, while positioning Malaysia as a digital hub for the region. “Our commitment aligns with the nation’s aspiration of becoming a fully integrated digital society, ensuring that we continue to play a key role in the era of digital innovation,” Amar said. Unifi maintains its leadership in converged offerings of fixed broadband, mobile services, digital content and solutions for consumers and micro, small and medium enterprises (MSMEs), recording RM5.66 billion in revenue. Unifi’s fixed broadband segment grew 3.1 per cent to 3.13 million subscribers, driven by strategic convergence campaigns and aggressive customer retention efforts. As a preferred partner to more than 400,000 MSMEs nationwide, Unifi Business continues accelerating digital adoption by providing tailor-made solutions, offering them the tools and support needed to thrive in the digital economy. Looking ahead, Unifi will further cement its role as a leader in convergence to deliver unmatched converged digital services. TM One continues to navigate the market complexities while exploring new growth opportunities. Despite decreased revenue to RM3.14 billion in FY23, its fourth quarter (Q4) FY23 results showed an increase in revenue of 17.3 per cent compared to the third quarter (Q3) FY23, driven by a surge in solution-based customer projects. Moving forward, TM One is poised to remain at the forefront of supporting and enabling the digital infrastructure for government entities and enterprises. With a focus on innovation and strategic partnerships, TM One is set to play a significant role in Malaysia’s digital transformation journey. TM Global posted a solid financial performance in FY23, with revenue rising 8.7 per cent to RM3.10 billion, primarily from an increase in international data revenue, driven by managed wavelength services for hyperscalers, alongside an uptick in domestic data services. In the domestic landscape, TM Global continues to expand 5G backhaul sites and high-speed broadband (HSBB) access coverage in accelerating digital inclusivity nationwide. Globally, it recorded a year-on-year 30Tbps bandwidth growth and delivered a mega requirement of more than 35Tbps long-term leased connectivity for US-based hyperscaler. TM Global will continue to broaden its digital infrastructure solutions and forge strategic alliances with global carriers to position Malaysia as a digital hub for the region, facilitating seamless digital connectivity and services across borders.

KUALA LUMPUR: Several key Asia-Europe sea-air hubs have recorded a strong surge in tonnages in the last few weeks, as shippers continue to seek alternative logistics solutions due to the disruptions to container shipping caused by the attacks on ships in the Red Sea. According to a recent report by WorldACD Weekly Air Cargo Trends, freight sources have reported that some Asia-Europe sea-air hubs such as Dubai, Colombo and Bangkok have been inundated with air cargo in recent weeks, as cargo owners seek to replenish stocks in Europe that have run low because containerships that would normally transit via the Suez Canal have been forced make the longer voyage around the Cape of Good Hope. Recent in-depth analysis by WorldACD Market Data can confirm that air cargo tonnages to Europe from Dubai, Colombo and Bangkok have been at significantly elevated levels this year compared with the equivalent period last year. Analysis, based on the more than 450,000 weekly transactions covered by WorldACD’s data, reveals that in the first seven weeks of 2024, all three of those sea-air hubs have seen their respective flown tonnages to Europe rise by more than 50 per cent compared with the first seven weeks of 2023, with Dubai-Europe traffic up 71 per cent, Colombo-Europe tonnages up 61 per cent, and Bangkok-Europe volumes up 58 per cent, year-on-year (YoY). But despite some reports of elevated traffic volumes to Europe via Singapore and Doha, Singapore-Europe and Doha-Europe tonnages were up, YoY, by just 10 per cent and 3 per cent, respectively, in the first seven weeks of this year. “The later timing of the Lunar New Year (LNY) this year on February 10, compared with January 22 last year, makes precise and week-by-week comparisons difficult. “Still, across the first seven weeks, there is a clear pattern of elevated tonnages to Europe from Dubai, Colombo and Bangkok. “The patterns are less clear in pricing because of multiple variables at play, including LNY and the market-wide decline in pricing compared to last year,” the report noted. And it’s unclear currently whether the elevated demand for sea-air solutions will continue significantly beyond the LNY period, with ex-Asia Pacific normally associated with a spike in demand leading up to LNY followed by a subsequent fall in tonnages and prices, it said. Tonnages in week 7 (February 12 to 18) remained up, YoY, to Europe from Dubai, Colombo and Bangkok. Dubai-Europe gains have almost tripled in week 7 to 161 per cent YoY, while the previous three weeks stood at 89 per cent, 93 per cent and 77 per cent. Colombo-Europe volumes in week 7 were more than doubled to 112 per cent, the levels of week 7 in 2023, and Bangkok-Europe tonnages also remained highly elevated at 68 per cent. Meanwhile, the global picture shows the effects of the traditional seasonal decline in demand ex-Asia Pacific in the days following LNY, with a big decline in tonnages ex-Asia Pacific pushing down overall tonnages in week 7 by a further to 10 per cent, following a similar tonnage drop in week 6. “Looking at average global rates, we see a week-on-week (WoW) drop of 6 per cent in week 7 this year, compared to an 8 per cent WoW decline in the equivalent post-LNY week (week 4) last year, consistent with a broadly similar seasonal pattern. “Those average global yield declines can be explained as a ‘mix effect’, with reduced high-yielding volumes ex-Asia Pacific causing a drop in the global average, and not by individual rates decreasing,” the report said. Expanding the comparison period to two weeks, total combined tonnages for weeks 6 and 7 this year were down by 14 per cent, globally, compared with the preceding two weeks (2Wo2W), with average rates stable and capacity down by 4 per cent. The dominant effect of LNY on these figures can be seen in the 25 per cent drop in tonnages, 2Wo2W, from the origin region Asia Pacific. Even after that 25 per cent drop, 2Wo2W, those tonnages are still at almost the same level as in weeks 6 and 7 last year (1 per cent), despite LNY occurring almost three weeks later this year, pointing towards a structural improvement compared with last year. Meanwhile, tonnages from the Central and South America origin region were also down significantly by 27 per cent, 2Wo2W, but this was principally due to a spike in flower shipments from ex-Central and South America in previous weeks ahead of Valentine’s Day on 14 February. The only origin region in weeks 6 and 7 this year to record an increase in tonnages on a 2Wo2W basis was the Middle East and South Asia (2 per cent), mainly driven by a 6 per cent rise in Europe. And Middle East and South Asia were the only origin regions to show a significant rise (11 per cent) in average rates, 2Wo2W, with Middle East and South Asia to Europe the only major intercontinental lane to show a significant rise in average prices (18 per cent) – most likely a reflection of the surge in recent weeks of Asia Pacific to Europe traffic converted to sea-air, it said. The report further said YoY comparisons show a 1 per cent decrease in total worldwide tonnages for weeks 6 and 7, combined, compared with last year, despite LNY occurring almost three weeks later this year, again suggesting a structural improvement in demand levels compared with last year. With most origin regions showing a small to moderate YoY decline, the Middle East and South Asia were again the outliers, recording a YoY rise of 22 per cent – likely a further indication of the conversion of Asia Pacific to Europe ocean freight to sea-air volumes. On the pricing side, average worldwide rates of US$2.24 per kilo in week 7 are 16 per cent below their levels this time last year, with rates from ex-Europe and ex-North America down by 32 per cent and 21 per cent, respectively. Nevertheless, average global rates remain significantly

KUALA LUMPUR: The global aviation biofuel market will reach US$51.23 billion by 2028 from $32.64 billion in 2022, with an expected compounded annual growth rate (CAGR) of 7.64 per cent. According to the Research and Markets report, the global aviation biofuel market is gaining significant attention as the aviation industry seeks to reduce its carbon footprint and mitigate the environmental impact of air travel. The report said several factors drive the market for aviation biofuel. Firstly, there is a growing awareness of the need to reduce greenhouse gas emissions in the aviation sector. Biofuels offer a way to achieve this goal by providing a more sustainable and environmentally friendly fuel option. Governments and regulatory bodies are also playing a crucial role in promoting the use of biofuels through incentives, mandates, and policies that encourage the adoption of sustainable aviation fuels. To note, the aviation biofuel, also known as sustainable aviation fuel (SAF), is derived from renewable sources such as biomass, cooking oil, algae, and other organic materials. It is considered a viable alternative to traditional jet fuel due to its lower carbon emissions and potential for reducing dependence on fossil fuels. Another factor driving the growth of the aviation biofuel market is the increasing demand for air travel. As the global population continues to grow and economies develop, the demand for air transportation is expected to rise. This, in turn, will lead to higher aviation fuel consumption. Biofuels offer a way to meet this growing demand while reducing the carbon emissions associated with air travel, the report noted. Further, technological advancements and research and development efforts are also contributing to the growth of the aviation biofuel market. Scientists and engineers are continuously working on improving the production processes, feedstock options, and overall efficiency of biofuels. This has led to developing advanced biofuel technologies that offer higher energy density, better performance, and compatibility with existing aircraft engines. However, the Research and Markets report noted that the aviation biofuel market still faces several challenges. One of the main challenges is the scalability of production. Scaling up biofuel production to meet the demands of the aviation industry requires significant investment in infrastructure, feedstock cultivation, and refining facilities. Additionally, biofuel costs are currently higher than traditional jet fuel, making it less economically viable for widespread adoption. “Despite these challenges, the global aviation biofuel market is expected to grow in the coming years. “The increasing focus on sustainability, coupled with government support and technological advancements, will drive the adoption of biofuels in the aviation industry,” the report noted. Continued research and development efforts and collaborations between industry stakeholders will be crucial in overcoming the challenges and realising the full potential of aviation biofuels in reducing carbon emissions and creating a more sustainable aviation sector, it said.