Disclaimer : Perpustakaan Tun Abdul Razak, UiTM
This material may be protected under Malaysia Copyright Act which governs the making of photocopies or reproductions or copyrighted materials. You may use the digitized materials for private study, scholarship or research.
Malaysia's communications &
multimedia sector still resilient despite Covid-19 crisis, says MCMC
KUALA LUMPUR: The extraordinary circumstances brought by Covid -19 has caused a mild setback to the overall performance of the communications and multimedia (C&M) secto r in Malaysia's capital market last year.
The Malaysian Communications and Multimedia Commision (MCMC) said the market capitalisation of the C&M sector in Bursa Malaysia had contracted slightly from RM144.01 billion in 2019 to RM142.96 billion in 2020.
Nevertheless, the C&M sector remained resilient despite the Covid -19 crisis, MCMC chairman Dr Fadhlullah Suhaimi Abdul Malek said in MCMC's Industry Performance Report 2020 released today.
This was due to the continuing demand of essential services provide d by the sector and partly cushioned by the impact from government stimulus packages, Fadhlullah added.
Disclaimer : Perpustakaan Tun Abdul Razak, UiTM
This material may be protected under Malaysia Copyright Act which governs the making of photocopies or reproductions or copyrighted materials. You may use the digitized materials for private study, scholarship or research.
The sector represented 7.9 per cent of Bursa's total market capitalisation of RM1.82 trillion in 2020 (2019: 8.4 per cent), which was a slight decrease of 0.5 percentage point.
In terms of financial performance, the domestic C&M industry's revenue was at RM46.64 billion in 2020, declined 4.1 per cent from RM48.62 billion in 2019, mainly contributed by the
telecommunications sector, followed by the broadcasting sector.
In 2020, the total telecommunications capital expenditure (capex) increased three per cen t to RM4.75 billion (2019: RM4.61 billion) as the service providers were spending more on
upgrading infrastructure to support rising data demands.
Overall, about 76 per cent of the total capex was network-related expenditure.
Based on return on assets, the telecommunications sector achieved 6.5 per cent in 2020, a marginal increase from 6.3 per cent in 2019.
This demonstrated that the sector was relatively efficient in using its assets to generate earnings, MCMC said.
The postal and courier sector posted revenue growth, spurred by e-commerce as consumers' spending habits shifted from offline to online purchases due to the pandemic.
Fadhlullah said 2021 would be a more exciting year where initiatives under Jendela began to take a more prominent shape and start delivering visible results in improving the quality of experience for consumers and businesses in Malaysia.
"The major milestones on the 2021 watchlist are the 3G sunset and the commencement of commercial 5G service in major cities and strategic areas by the final quarter of 2021," he added.
