U Mobile's 5G deal: The inside story you may not have heard

Opinion
17 Nov 2024 • 10:00 AM MYT
LC Yap
LC Yap

A freelance computer programmer by day. Also an avid political observer.

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Source: Soya Cincau

THE recent decision to award Malaysia’s second 5G network rollout to U Mobile, the smallest contender in the race, has sparked more than a little suspicion. What's more shocking is the questionable web of connections among key players.

Let’s start with a simple fact: Tan Sri Mohamad Salim Fateh Din, the current chairman of the Malaysian Communications and Multimedia Commission (MCMC) - the same body which awarded U Mobile the job - is also the Executive Vice Chairman of Malaysian Resources Corp Bhd (MRCB).

In January this year, MRCB signed a teaming agreement with Berjaya Corporation’s subsidiary, Berjaya Rail Sdn Bhd, to form a consortium bidding for the high-speed rail project to Singapore. And who is behind Berjaya Corporation? None other than Tan Sri Vincent Tan, who also happens to chair U Mobile.

In other words, MCMC awarded a major contract for 5G to a company which has business ties to its chairman via MRCB. Not exactly the kind of transparency we expect from a government that’s been beating the anti-corruption drum.

For those trying to keep up, this might feel like a tangled web of “I scratch your back, you scratch mine.” And Vincent Tan has been particularly vocal about the need for a second 5G network to end what he calls a “monopoly” under the previous administration. His critique, however, doesn’t seem to be about reducing monopolies so much as ensuring his business interests stay intact.

Of note in this whole deal is a royal connection. The Yang Di-Pertuan Agong holds a significant stake in U Mobile, while Tunku Tun Aminah, the Agong’s daughter, was appointed chairperson of Berjaya Rail last year.

But the primary focus here should be on the ties between Salim and Vincent Tan. Did the chairman of the MCMC act fairly and impartially in the award of the 5G job? Was there any conflict of interest?

This is time for full public disclosure of how this decision was made. And given the deep ties between MCMC’s chairman, U Mobile, and Berjaya Corporation, it’s not hard to see why.

The opacity around this deal is disappointing but not surprising. It’s a reminder that while Malaysia may have new leaders, the same old networks continue to thrive.

Perhaps it’s time for the government to demonstrate real transparency—not just empty promises. If U Mobile’s bid truly was the best, then prove it with data and make the selection process public. Let the Malaysian people see the criteria, the competitors, and the final scores. Because without that, this entire selection reeks of the same crony capitalism we’ve been promised would be dismantled.

Until then, Malaysians can only watch this show of “who’s who” unfold, shaking their heads in disappointment as familiar names and faces trade places at the top. The players may change, but the game remains stubbornly the same.


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