CelcomDigi Bhd is expanding beyond traditional mobile services into enterprise technology solutions as Malaysia’s telecommunications sector experiences slower growth, compelling operators to explore new income sources.
Shifting Focus to Technology Solutions
Kugan Thirunavakarasu, CelcomDigi’s chief enterprise business officer, acknowledges that connectivity alone no longer creates meaningful differentiation among operators, restricting revenue potential. “The core business today is growing but it’s growing at a very low single-digit [pace], so telcos, not only CelcomDigi but across the globe, are looking at new ways and opportunities to create new potential revenue streams. That’s where the whole transition from being a pure traditional telco player to a telco tech player comes from,” he states.
This strategic move aligns with the perspective of Communications Minister Datuk Seri Fahmi Fadzil, who predicts mobile network operators will transform into broader technology companies, or “techcos.” Malaysia’s high mobile penetration—ranging between 130% and 140%—along with widespread 5G adoption, has created ideal conditions for this expansion.
As Malaysia’s largest mobile operator by subscriber count, CelcomDigi is capitalizing on its extensive network coverage and low-latency connectivity to support digital applications across industries. “Most of the technology here is developed in relation towards connectivity because the main focus and core provider, as a telco company, is our telco services, so we are layering solutions on top of it to solve problems,” Kugan explains.
AI Xperience Centre as an Innovation Hub
The company’s AI Xperience Centre (AiX), launched in July 2024, serves as a testing ground for 5G and artificial intelligence applications across eight sectors: manufacturing, logistics, energy, fleet management, ports, healthcare, education, and agritech. The centre functions as an innovation hub demonstrating practical uses of emerging technologies.
Following the merger of Celcom and Digi, the company initially focused on modernizing internal IT systems and forming partnerships in cloud infrastructure and cybersecurity. Its collaboration with Digital Nasional Bhd (DNB) further strengthened the foundation for developing business services. “We experimented and digitised everything internally with CelcomDigi but we started to look at businesses that can actually leverage some of this tech and create value for themselves,” Kugan says.
The techco division, now the fastest-growing segment of CelcomDigi’s enterprise portfolio, reflects this shift. With AI adoption accelerating, companies are increasingly looking for ways to integrate technology into operations, reducing costs and automating manual tasks. “Businesses need reliable connectivity, cloud services, IoT sensors, and cybersecurity to deploy AI effectively,” Kugan notes.
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Local partnerships play a key role, with 70% of solutions developed in collaboration with Malaysian firms. These alliances allow CelcomDigi to access specialized expertise while helping local providers gain visibility in their respective industries. “We’re not just delivering solutions—we’re also improving the capabilities and market presence of Malaysian companies in these sectors,” Kugan says.
Since its launch two years ago, AiX has delivered 28 live commercial deployments and automated more than 400 use cases within the group. A recent project involved a smart city management system for the Petaling Jaya City Council, using AI to analyze municipal data for traffic and flood control. The centre is also developing technology for small and medium enterprises (SMEs), including a recently launched agentic AI solution designed to execute tasks, connect systems and coordinate business processes rather than function only as an assistant.
Solutions from AiX are designed to be modular and adaptable, allowing businesses to adjust them as needs change. The centre collaborates with universities on talent programs, integrating students into pilot projects addressing specific challenges. Visitors, including banks, utility companies, and foreign diplomats, provide ongoing feedback to refine future offerings.
CelcomDigi continues to enhance 5G connectivity and security while embedding AI deeper into customer interactions and internal operations. Secure connections remain critical as fraud becomes more sophisticated, with the company encouraging financial institutions to adopt anti-scam solutions that improve authentication speed and accuracy.
Infrastructure and Business Process Automation
5G adoption and mobile penetration rates between 130% and 140% created favorable conditions for expansion, according to Kugan Thirunavakarasu. The partnership with Digital Nasional Bhd provided additional infrastructure for developing business services.
Strengthening Malaysia’s Digital Ecosystem
The company’s partnerships extend beyond immediate project execution. By involving Malaysian firms in solution development, CelcomDigi ensures technologies align with local market demands while supporting long-term growth in the domestic tech sector. Kugan emphasizes this approach as essential for maintaining relevance and building sustainable capabilities.
Scaling Solutions Through Industry Engagement
AiX regularly hosts visits from banks, government agencies, utility providers, and foreign representatives, all of whom contribute insights that shape future developments. The centre’s modular systems allow successful pilots to be scaled into broader products, whether optimizing procurement workflows or enhancing customer service through AI.
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