PETALING JAYA: Malaysia needs clear safeguards to ensure its two 5G technology options remain distinct despite changes in network ownership and suppliers, an analyst said.
The Asia Group Associate Vice President Asrul Hadi Abdullah Sani said the government also needs to clarify the long-term direction of Digital Nasional Berhad (DNB) to ensure technological diversity is maintained alongside the development of the second 5G network.
“Malaysia’s strategic flexibility does not only depend on having two 5G networks, but also on ensuring that the two networks do not converge into dependence on the same technology,” he said.
According to Asrul, the second network should enhance competition and capacity, while decisions concerning 5G should also take into account cybersecurity, supply chain resilience and compatibility with other systems.
“Public assurances certainly help, but they are not sufficient.
“They need to be supported by clear governance, transparent procurement rules and safeguards to ensure that DNB and the second 5G network remain technologically distinct, commercially viable and accessible even in the event of changes in ownership, operations or suppliers,” he said.
The view follows a Frost & Sullivan analysis which stated that Malaysia’s two-network 5G model could strengthen its investment appeal by giving companies the option to choose technologies suited to their security, procurement and regulatory requirements.
The analysis also stated that access to Western and Eastern technology ecosystems could broaden Malaysia’s ability to work with various international partners.
However, companies need long-term certainty regarding the options available and how the two networks will operate alongside each other.
Prime Minister Datuk Seri Anwar Ibrahim, during a working visit to China from September 22 to 24, also stressed that Malaysia remains open to digital investment and cooperation from China, while highlighting the country’s position as a base for access to Asian and international markets.
Anwar had previously linked the two-network approach in 2023 to efforts to leverage both Western and Eastern technologies.
DNB appointed Sweden’s Ericsson to develop its network, while U Mobile selected China’s Huawei and ZTE as technology partners for the second 5G network.
Meanwhile, Asrul said certainty regarding network options and the supplier ecosystem is particularly important to investors in artificial intelligence, data centres and cloud services.
He said investors need confidence that they can choose network and supplier arrangements that meet their respective operational and compliance requirements.
Meanwhile, Senior Consultant at Global Asia Consulting and Adjunct Lecturer at Universiti Teknologi PETRONAS (UTP) Samirul Ariff Othman said the existence of two networks does provide choice, but credible governance is needed to ensure that choice can translate into strategic autonomy.
He cautioned that the existing supplier arrangements should not be regarded as a permanent government guarantee of the existence of two exclusive technology blocs.
Samirul also called for clear rules governing supplier changes, independent assessments, customer notifications and transition arrangements.
“Businesses can price in technology risk.
“They find it much harder to price in a promise whose meaning can change,” he said.
