Safeguarding Public Interest in Malaysia's 5G Future: Former Minister Urges Government Action

Former deputy minister of international trade and industry (Miti), Ong Kian Ming, has issued a compelling plea to the Communications and Digital Ministry (KKD) and the Ministry of Finance (MoF) to prioritize public interest in their shareholder agreement with telecom companies (telcos) regarding the ownership of Digital Nasional Berhad (DNB).

Expressing concern about the potential for a telco duopoly that could prioritize profits over public interest, Ong emphasized the importance of Putrajaya holding a "golden share" in the 5G network operator. This move would act as a safeguard against a scenario where private entities exert control over the 5G network, placing shareholder returns above public welfare.

Ong highlighted key considerations for the government in signing any shareholder agreement with telcos for DNB ownership. These include maintaining a majority of shares to retain decision-making power, and ensuring the protection of DNB's assets and structure from being sold to private entities for profit.

The former Bangi MP also underscored the necessity for government authority in selecting DNB's chairman and vetoing the appointment of the chief executive officer to prevent potential misuse by telcos. Strict controls over the allocation and disposal of 5G assets owned by DNB were proposed to prevent telcos from reallocating infrastructure for their benefit rather than maximizing operational efficiency for the entire 5G network.

Furthermore, Ong emphasized the importance of conducting proper due diligence, incorporating a detailed business plan evaluated by the Malaysian Communications and Multimedia Commission under the Communications and Multimedia Act 1998 (Act 588). This includes assessing the implications of a possible second network, including financing and rollout plans, and impacts on the existing 5G network, with considerations for financial implications to the MoF.

Cautioning against hasty decisions, Ong stressed that signing the shareholder agreement for DNB should only proceed if assurances of both the government's and the public's interests can be guaranteed.

Highlighting a report by Singapore-based CNA, Ong criticized the lack of comments from official government sources and the omission of DNB's successful record in rolling out 5G in Malaysia. He pointed out that this achievement has elevated Malaysia to a top-three global ranking in 5G speeds, contributing to enhanced 4G speeds, as reported by network intelligence provider Ookla recently.

In summary, Ong's urgent appeal underscores the need for a careful and considered approach to the shareholder agreement to safeguard public interest in Malaysia's 5G future.

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