KUALA LUMPUR: Malaysia’s telecommunications sector is being urged to adopt bold, digital-first strategies that align with the evolving expectations of modern consumers, as traditional approaches become increasingly ineffective in a saturated and highly competitive market.
A recent study by GrowthOps Asia highlighted that the country’s telco industry is undergoing a significant transformation, shaped by ongoing market convergence, the nationwide rollout of 5G, changing regulatory frameworks, and large-scale infrastructure investments.
The report, titled Winning in Malaysia’s Mature Telco Market, revealed that mobile connections in Malaysia now exceed 129 percent of the population, underlining a state of full market penetration. This level of saturation calls for a decisive shift from legacy tactics to forward-thinking innovations that offer consumers more than mere connectivity.
“We are at a pivotal moment in the telco market, where consumers are no longer just looking for connectivity – they want a single, inclusive provider that delivers a suite of services and meaningful value-adds,” said Chris Greenough, General Manager of GrowthOps Malaysia. “The players who pair innovative products with sharp, relevant go-to-market strategies will be the ones that win.”
According to the report, CelcomDigi Bhd has emerged as the market leader with an estimated 40 percent share, following its merger in 2022. Maxis Bhd is positioned as a premium brand, focusing on network reliability and customer loyalty incentives. Meanwhile, challengers such as U Mobile Sdn Bhd and Uni by Telekom Malaysia Bhd are aggressively competing on affordability and plan innovation.
The findings also reveal that while network quality and pricing continue to influence consumer choices, there is untapped potential in loyalty rewards programmes. No current provider stands out as a leader in rewards, despite many offering comparable features such as unlimited data and 5G access. The report noted that providers who combine strong network performance, competitive pricing, distinctive product features, and compelling loyalty benefits are well positioned to capture additional market share.
Strategic growth opportunities have been identified in underserved urban and rural markets, the younger digital-native demographic, and through the adoption of new subscription models and multi-channel engagement strategies.
The study also highlighted a strong correlation between brand awareness, share of voice, and market dominance. A robust digital presence and meaningful customer engagement are key to sustaining competitive advantage.
“Telco brands that understand shifting preferences, act on regional and generational nuances, and focus on clarity, convenience, and credible communication will lead the next wave of mobile loyalty and growth in Malaysia,” the report concluded.
-Bernama
