Kenanga: The telecommunications industry is also moving towards esg development.
Implementation of cybersecurity regulations: The telecommunications industry is moving towards esg goals.
(Kuala Lumpur, 18th) The Malaysian Cybersecurity Act 2024 (CBSA) officially took effect in August, according to Kenanga Investment Bank, which sees it as a watershed event enhancing data security protection for telecommunications companies and advancing long-term environmental, social, and governance (esg) goals.
Kenanga analysts pointed out that cybersecurity is a key pillar in the esg vision of telecommunications companies, considering that these companies have access to massive amounts of data belonging to Malaysian citizens, including personal and sensitive information such as population, addresses, telephone numbers, and internet usage.
The analyst also stated that although various telecommunications companies have made significant efforts in cybersecurity, there is still much room for improvement in terms of credibility and transparency.
Due to the fact that the Personal Data Protection Act of 2010 (PDPA) did not specifically address cybersecurity issues, most telecommunications operators voluntarily complied with cybersecurity measures.
Therefore, the analyst believes that the implementation of the CBSA Act will bring significant changes to the telecommunications industry, as all operators are now regulated by the relevant laws and must comply with the requirements of legal cybersecurity.
In addition to fines and imprisonment for offenders, all leading players in the telecommunications sector may also need to make public announcements in the event of cybersecurity incidents.
He said that this may drive telecommunications companies to further enhance cybersecurity in order to avoid reputational damage, loss of consumer confidence, and long-term customer attrition risks.
Progressive implementation of CBSA
Furthermore, after meeting with the Malaysian Cybersecurity Agency (CSM), the analyst learned that the government will not immediately fully implement the CBSA Act, but will provide a grace period of 2 to 3 years to allow telecommunications companies and other national critical information infrastructure (NCII) sectors sufficient time to adjust their directions and measures in terms of cybersecurity to comply with legal requirements.
We believe that the grace period may simplify the transitional period for telecommunications companies in terms of cybersecurity compliance, but related stakeholders' self-regulatory actions will begin to take place.
In any case, the analyst pointed out that the CBSA Act is only the first step, and the government may introduce more cybersecurity measures in the future, including the Cybersecurity Resilience Act or amendments to the PDPA Act, to further strengthen the standards of cybersecurity compliance.
"We welcome these developments, which will help telecommunication companies address the increasing cybersecurity threats in the future of advancing technology."
The analyst maintains a "buy" rating for the telecommunication sector, with Ma Telecom as the preferred stock. $TM (4863.MY)$and Tiantong Digital Network.
Source of information: Nanyang Siang Pau
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胡空 HuKong : There is a serious leakage of user data, and I receive at least one to several scam calls every day. They know exactly what you are doing, for example, recently I have been using the Moomoo App for stock trading, they would know that I am making remarks on the platform, and then pretend to be from MCMC, claiming that I am spreading false information. So I ask you, is this terrifying? Both the telecommunications industry and the banking, financial, and insurance industries need to be severely regulated. In my opinion, the most rampant are the banks hiring third-party collection agencies, as those people have no moral bottom line.