PETALING JAYA: The telecommunications (telecoms) sector is expected to remain supportive of digital inclusion, underpinned by affordable pricing and continued industry-government collaboration, says CIMB Securities Research.
The research house has maintained an “overweight” stance on the sector, noting that the risk of heavy regulatory intervention on the sector is minimal.
The assessment comes amid ongoing global concerns that high connectivity costs could prompt stricter regulatory oversight.
However, regarding Malaysia, CIMB Securities said in a sector note yesterday: “For lower-income groups, telcos and the government have undertaken joint initiatives to offer targeted discounts.”
At the mobile level, entry-level prepaid plans remain highly accessible. Users can subscribe to a RM25 monthly plan offering about 60 GB (gigabytes) of data, which is equivalent to only 0.6% of Malaysia’s gross national income per capita – well below the International Telecommunication Union’s global target.
This affordability has improved significantly over time. CIMB Securities highlighted that the price per GB has fallen by 63% over the past five years to just around 42 sen currently, reflecting intensifying competition and efficiency gains across the sector.
Fixed broadband pricing has also become more competitive, with entry-level fibre plans priced at RM89 per month for 100 Mbps (megabits per second), which is equivalent to an affordable 1% of Malaysia’s 2024 average household income.
The decline in pricing has been particularly sharp over the longer term.
Since 2017, fibre broadband cost per Mbps has dropped significantly, following the implementation of the Mandatory Standard on Access Pricing (MSAP), improving both affordability and service quality.
Relative to regional peers, Malaysia performs favourably in terms of affordability when benchmarked against income levels.
Mobile data costs as a share of income are lower than in Thailand, Indonesia and the Philippines, but still higher than Singapore.
Beyond pricing, targeted initiatives have played a key role in expanding digital access among underserved groups.
CIMB Securities pointed to multiple joint efforts between telcos and the government, particularly since the Covid-19 lockdowns, to ensure connectivity remains accessible.
These include programmes offering free daily data, subsidised devices, and affordable broadband packages for lower-income households, students and rural communities. Underlining an initiative example, CIMB Securities said eligible users received a free smartphone, a prepaid YES 4G SIM card, and 120 GB of data over 12 months with no contracts, upfront payments, or deposits.
More recently, the research house said targeted plans such as the Pakej Perpaduan and Rahmah have further reduced barriers to access by offering low-cost mobile and broadband services to specific segments, including B40 households, youths, senior citizens and gig economy workers.
Such measures have reinforced the sector’s role in supporting national digitalisation goals while addressing affordability concerns.
Looking ahead, CIMB Securities expects affordability to remain a defining feature of the sector, supported by continued regulatory frameworks and potential future pricing adjustments under MSAP.
Overall, the Malaysian telecoms sector appears well-positioned to sustain inclusive connectivity growth, with pricing dynamics reducing regulatory risks while supporting broader digital adoption across income segments.
