KUALA LUMPUR, Dec 9 — The Ministry of Finance (MoF) insisted on handling Malaysia’s 5G rollout despite knowing that the formation of Digital Nasional Berhad (DNB) would monopolise the telecommunications industry in the country, the Dewan Rakyat was told today.
Deputy Communications and Multimedia Minister Datuk Zahidi Zainul Abidin said its officials met with representatives from DNB and told them they were not keen on a monopoly, but in the end MoF insisted on handling the 5G rollout.
“We met with representatives from local telecommunications companies on how to work with DNB to streamline the 5G rollout because we are aware DNB seems like a monopoly.
“We at the ministry met with DNB and said we feel these policies will create a monopoly for them and it’s not the way we do things in Malaysia. However, MoF’s excuse was that they wanted to coordinate the 5G rollout and they don't want to give it to other telcos, they will coordinate with these telcos.
“So we accepted this decision as it came from the ministry,” he said.
Zainul added his ministry was only providing a service within the spectrum of 5G.
He said questions on investments should be channelled to the Ministry of International Trade and Industry.
DNB is a government-owned special purpose vehicle that was created to build, own and operate Malaysia’s 5G infrastructure.
It has come under public scrutiny for lack of transparency and its establishment, administration and financial management.
Opposition MPs have pointed out that DNB gets its funds from MoF in the shape of bonds, and raised concern over its potential to become another financial liability like scandal-riddled 1MDB.
DNA is currently offering local telecommunications companies a free trial of its 5G infrastructure, which has so far only been taken up by Telekom Berhad.
Previously, Communications and Multimedia Minister Tan Sri Annuar Musa said the final decision to use the Single Wholesale Network model for the rollout of the 5G network is still pending, adding that the negotiation process between DNB and telecommunication companies is being handled by the Malaysian Communications and Multimedia Commission.
