KUALA LUMPUR, Sept 25 — The Ministry of Communications and Digital (KKD) is proposing for the government to introduce a special grant under Budget 2024 to facilitate 5G adoption among the micro, small and medium enterprise (MSME) sector.

Minister Fahmi Fadzil said the proposal has been submitted to the Finance Ministry.

"5G will provide numerous advantages to MSMEs, so I hope we will obtain the special grant to increase 5G usage among them,” he told reporters at the launch of Ericsson Imagine Live Malaysia 2023 here today.

He said Malaysia is on track to achieve 80 per cent 5G network coverage in populated areas by year-end, up from the current coverage of 68.8 per cent currently before transitioning to a dual network model.

The minister noted that the 5G adoption rate remained low at 4.2 per cent, therefore, more efforts must be made to realise the full 5G potential.

"We want to send a message to the industry that through this grant, the government understands the challenges MSMEs face in adopting 5G technology,” he said.

Fahmi said MSMEs face challenges in acquiring new 5G equipment, and many are unaware of the future benefits of their investments in the technology.

"So I have requested the Malaysian Communications and Multimedia Commission and telecommunication companies to run outreach programmes to subscribers, especially enterprises so that they will understand this is what we can do, where we need to invest and what we can gain from using 5G,” he said.

Fahmi said the ministry is also looking to facilitate engagements between telecommunication players and local government authorities (PBT) in the East Coast to get their feedback on the requirements of 5G towers.

"For example, in certain locations, we use monopoles and install fibre cables along the roads, not within pipes and such.

"However, some PBT see it (pipe installation) as a requirement, and this becomes a discussion where KKD helps with engagement and facilitation through existing committees to reduce the digital divide.

"We hope that through parties such as the National Council for Local Government (NCLG), we can align efforts to implement 5G networks better nationwide,” he said.

Asked about the impact of the reduction in wholesale rates as per the new mandatory standard on access pricing on Telekom Malaysia Bhd ™, he said a lower price could mean that more customers would subscribe to its services.

"In the most recent exercise in 2018, initially, there were questions, but when we looked at TM’s performance over the years, despite Covid-19, the first year was a challenge, and after a while, with product innovations and efficiency, they were back in the black after a few years.

"So, it is not impossible. The administration’s position is that we want to help more Malaysians not only get better, faster and more stable but also cheaper internet,” he said. — Bernama