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Industry Performance Report Statutory Requirements INDUSTRY PERFORMANCE REPORT STATUTORY REQUIREMENTS In accordance with Part V, Chapter 15, Sections 123 – 125 of the Communications and Multimedia Act 1998, and Part II, Section 6 of the Postal Services Act 2012, the Malaysian Communications and Multimedia Commission hereby publishes and has transmitted to the Minister of Communications and Multimedia a copy of this Industry Performance Report (IPR) for the year ended 31 December 2020. ACKNOWLEDGEMENT MCMC would like to thank all licensees who responded to the IPR 2020 questionnaire, from which part of their feedback was collated and included in this publication. MALAYSIAN COMMUNICATIONS AND MULTIMEDIA COMMISSION, 2021 INSIDE THIS The information or material in this publication is protected under copyright and save where otherwise stated, may be IPR 2020 reproduced for non-commercial use provided it is reproduced accurately and not used in a misleading context. Where any material is reproduced, MCMC as the source of the material must be identified and the copyright status acknowledged. Chairman’s Statement 2 QUALITY ASSURANCE AND The permission to reproduce does not extend to any information or material the copyright of which belongs to any other Executive Summary 4 7 CONSUMER PROTECTION person, organisation or third party. Authorisation or permission to reproduce such information or material must be obtained Consumer Protection and Empowerment 76 from the copyright holders concerned. LICENSING 1 Consumer Protection 76 Complaint Statistics 77 This work is based on sources believed to be reliable, but MCMC does not warrant the accuracy or completeness of any Overview 10 Mitigation on Vishing and Smishing 82 information for any purpose and cannot accept responsibility for any error or omission. Licensing Profile Over the Years 10 Industry Self-Regulating Forums 83 Roll Out Status in 2020 15 Communications and Multimedia Consumer 83 ECONOMIC PERFORMANCE Forum of Malaysia 2 OF C&M INDUSTRY Communications and Multimedia Content Forum 85 Overview 18 of Malaysia C&M Industry Market Performance 18 Malaysian Technical Standards Forum Bhd 89 C&M Industry Financial Performance 22 Market Regulation 90 Telecommunications Sector 23 Communication Regulation 92 Broadcasting Sector 25 Prepaid Audit Activity 92 Postal and Courier Sector 26 Mobile Content Services 93 ACE Market Overview and Performance 27 Mobile Virtual Network 95 Termination of Mobile Number Due to Illegal 95 Advertisements SERVICES AND CONNECTIVITY 3 Content Regulation 96 Broadband in Malaysia 30 Spectrum Monitoring and Interference Resolution 98 Spectrum Interference 98 Fixed Broadband 30 Spectrum Monitoring in Satellite C-Band 101 Mobile Broadband 31 Quality of Service 102 Malaysia Internet Exchange (MyIX) 34 Mandatory Standards on Quality of Service 102 Mobile Cellular Services 35 Network Performance Assessment 103 MVNO Services 36 Safety Aspects of Electromagnetic Field Exposure 106 (EMF) of 5G Networks in Malaysia 4 CONTENT SERVICES Media Landscape Overview 42 8 POSTAL AND COURIER Impact of the COVID-19 Pandemic 42 Postal Services Industry Performance 2020 110 Content Services: Trending During the MCO 43 in Malaysia Postal Services Access 111 Broadcasting in Malaysia 46 Postal Services Traffic 113 TV and Radio Channels on MyFreeview 47 Courier Services 115 Digital FTA Channels 48 Licensing Scheme Under Postal Services Act 2012 115 Pay TV 49 Licensing Profile 115 National Broadcasting Digitalisation Project 51 The Moratorium of Non-Universal Service 116 Licences Published by: COVER RATIONALE Digital Terrestrial Television (DTT) Broadcasting 51 Malaysian Communications and Infrastructure Deployment Courier Services Traffic 116 Multimedia Commission The unprecedented events of the year 2020 brought the entire Radio Listenership in Malaysia 54 Courier Infrastructures 118 communications spectrum to the centre stage as countries grappled Malaysian Advertising Expenditure 57 Employment in Postal and Courier Services 119 MCMC HQ Tower 1 with how best to navigate an environment that prevented social and Quality of Service 120 Consumer Complaints 120 Jalan Impact physical gatherings. As a result of the pandemic, entire industries DIGITAL SERVICES 5 Emerging Technologies for Postal and Courier 122 Cyber 6 accelerated their digital transformation journeys, exponentially Services 63000 Cyberjaya, Selangor Darul Ehsan increasing the demand for quality communications and connectivity E-Commerce in Malaysia 60 National Postal and Courier Industry Lab (NPCIL) 123 T: +60 3 86 88 80 00 that is not only reliable but highly accessible in order to serve their Top e-Commerce Marketplace in Malaysia 60 Popular Items Purchased 61 F: +60 3 86 88 10 00 customers. The MCMC has always been at the forefront in improving What Motivates Consumers to Purchase Online 62 OUTLOOK Toll-Free: 1-800-888-030 connectivity for the betterment of society, and we continue to 9 E-Payment Services in Malaysia 63 W: www.mcmc.gov.my accelerate digital connectivity in the new normal to ensure we remain Public Key Infrastructure 65 Outlook 128 ISSN 1823 – 3724 true to this aspiration. Certificate Authorities in Malaysia 65 Appendix 1: Communications and Multimedia: Facts 135 6 NEW TRENDS and Figures, 2020 Note: Appendix 2: Postal and Courier: Facts and Figures, 2020 145 Numbers and percentages may not add up due to Development of Mobile Technology 68 List of Figures 155 rounding practices. Information and figures given are Emerging Digital Technologies 69 accurate as per current date and time the Report was List of Abbreviations 159 produced. Enhancing Customer Service using Chatbots 73 Contact Us 161 MALAYSIAN COMMUNICATIONS AND MULTIMEDIA COMMISSION Industry Performance Report 2020 CHAIRMAN’S STATEMENT CHAIRMAN’S STATEMENT 2020 will always As the first major wave of by consumers, as well as preparing the Moving forward, 2021 will be a COVID-19 swept the world in the nation for a major leap into the future more exciting year where initiatives be remembered in first quarter of 2020, Malaysia of Digital Economy. Two of the most under JENDELA begin to take a more history as a significant declared a nationwide lockdown crucial foundations of a viable Digital prominent shape and start to deliver under the Movement Control Economy ecosystem namely, digital visible results in improving the Quality year like no other, Order (MCO) on 17 March. The infrastructure and courier services, of Experience for consumers and during which the restriction caused the demand went under the microscope and up businesses in Malaysia. The major for network capacity to shift on the drawing board through the milestones on the 2021 watchlist are COVID-19 pandemic overnight from commercial areas weeks-long National Digital the 3G sunset and the commencement to residential areas. The internet Infrastructure Lab and the National of commercial 5G service in major cities went global and traffic demand in residential areas Courier Industry Lab. MCMC, industry and strategic areas by the final quarter changed everything increased between 50% and 70% players, government agencies and of 2021. All these under the umbrella causing network congestions various stakeholders took part to of the MyDigital, a blueprint for we had deemed as that resulted in 40% reduction in hatch the Jalinan Digital Negara Digital Economy and 4IR for Malaysia normal. The changing internet speed. Consequently, the (JENDELA) and Pelan Accelerator Kurier that was launched by the Prime Minister number of complaints on network Negara (PAKEJ) as the detailed action on 19 February 2021. This will certainly rules of engagement performance and coverage also plans to drive the industries forward add further promise for the industry to known as the new increased by up to 70%. The service to gear up for the digital future. move forward at a greater pace. providers scrambled to realign normal had suddenly their infrastructure and system to JENDELA and PAKEJ focus on bridging Having said the above, it is my honour increased the reliance cope with the shift. the Digital Divide and reinforce the to present the Industry Performance Digital Transformation to enable all Report 2020. on digital applications The extraordinary circumstances Malaysians, regardless of location and and stretched the had caused a mild setback to social status, to embrace new norms the overall performance of the and provide a fair chance for everyone capacity of the digital Communications and Multimedia to ride the wave of new opportunities networks. As such, (C&M) sector in the capital market. as the nation marches further into the The market capitalisation of the Digital Economy. Beside expanding this report shall be C&M sector in Bursa Malaysia coverage, various support activities, contracted slightly from RM144.01 in terms of training, consultation and an interesting scope billion (8.4%) in 2019 to RM142.96 subsidies, are provided to the Rakyat, to gauge on how the billion (7.9%) in 2020. Nevertheless, particularly the B40 and the rural the C&M sector remained resilient population, in order to achieve an communications and despite COVID-19 situation due inclusive growth as envisioned under multimedia industries to the continuing demand of the Wawasan Kemakmuran Bersama essential services provided by the 2030. In this regard, MCMC set up fared following the sector and partly cushioned by the 873 Pusat Internet Komuniti (PIK) COVID-19 shock. impact from government stimulus nationwide to serve as digital catalysts packages. in their surrounding communities, expanding from
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