1. INTRODUCTION

1.1 Telekom Malaysia Berhad (TM) wishes to announce that Maxis Broadband Sdn Bhd (MBSB), a wholly-owned subsidiary of Maxis Berhad and TM's current incumbent provider for the Services (as defined below) has accepted the letter of award for the provisioning of 2G and 4G Domestic Roaming services and 4G MOCN services (Award) from TM Technology Services Sdn Bhd, a wholly-owned subsidiary of TM.

1.2 The Award to MBSB will enable TM to extend its coverage and provide seamless mobile connectivity nationwide by leveraging an expanded portfolio of 2G and 4G network sites in addition to its existing infrastructure.

2. SALIENT TERMS OF THE AWARD

2.1 The salient terms of the Award, are inter alia as follows:

a) The Award is for the provisioning, integration, activation, testing, optimisation and billing of 2G and 4G Domestic Roaming services and 4G MOCN services (Services). The value of the Award is based on usage, rates and other agreed parameters, as stipulated in the Award;

b) MBSB will continue to provide the Services to TM until 30 September 2029 unless otherwise extended or terminated in accordance with the terms of the Award;

c) The Award contains customary termination provisions including rights to terminate for breach of contract, a party's insolvency or cessation of its telecommunications business; and

d) MBSB will make available to TM the Services and TM will pay for Services rendered.

3. FINANCIAL EFFECTS

3.1 Share Capital and Substantial Shareholders' Shareholdings

The Award will not have any effect on the issued share capital of TM and its substantial shareholders' shareholdings.

3.2 Earnings and Net Assets

The Award is not expected to have any material effect on the earnings and net assets of TM Group for the financial year ending 31 December 2026.

4. APPROVALS REQUIRED

4.1 The Award is not subject to any government authorities' approval.

4.2 TM will be procuring a shareholders' mandate for recurrent related party transaction, including the provision of the Services under the Award, pursuant to paragraph 10.09(2) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad at the forthcoming 41st Annual General Meeting scheduled to be held on 19 May 2026.

5. DIRECTORS' AND SUBSTANTIAL SHAREHOLDERS' INTEREST

Save as disclosed below, none of the directors and/or major shareholders of TM and/or persons connected to them has any interest, whether direct or indirect, in the Award:
 

5.1 Employees Provident Fund (EPF) is a common major shareholder of both TM and Maxis Berhad (Maxis). MBSB is a wholly-owned subsidiary of Maxis.
 

5.2 Muhammad Afhzal Abdul Rahman is a nominee director of EPF on TM Board.

6. AUDIT COMMITTEE STATEMENT

The Board Audit Committee (BAC) of TM, save for Muhammad Afhzal Abdul Rahman, having considered the rationale and benefits of the services to be provided and the basis and consideration in arriving at the commercial terms is of the view that the transaction is:

a) in the best interest of TM;

b) fair and reasonable and on normal commercial terms; and

c) not detrimental to the interest of the minority shareholders of TM.

7. STATEMENT BY THE BOARD OF DIRECTORS

The Board of Directors of TM, save for Muhammad Afhzal Abdul Rahman, having considered the recommendations of the BAC is of the view that the Award is in the best interest of TM Group.

This announcement is dated 5 May 2026.