A highlight of Datuk Seri Anwar Ibrahim’s three-day visit to Saudi Arabia last month was his call to review all monopolies in Malaysia.
While the prime minister’s recent trip to China was deemed more impactful – not just in terms of the state reception accorded to him by Beijing, but also in the RM170 billion worth of investment commitments from the Asian giant – Anwar’s stand on a healthy, competitive market economy in Malaysia that is free of monopolies, was of greater significance.
Moving forward, nothing would be more convincing than for him to ensure that there is no monopoly in the rollout of 5G technology in Malaysia.
The 5G rollout has been a contentious issue in the country due to the involvement of the state agency Digital Nasional Bhd (DNB).
DNB has been a bugbear for industry players and lawmakers since its launch in December 2021 because it is essentially a state monopoly.
In recent weeks, lawmaker Datuk Seri Johari Abdul Ghani has been particularly vocal about DNB. While telling Twentytwo13 that not all monopolies were bad, in the case of 5G, it was only right that telecommunications companies in Malaysia participated in the 5G rollout directly, “leveraging on their respective strengths”.
The Titiwangsa MP, however, was quick to add that addressing the DNB debate, for the government, was not that straightforward.
In a report by Twentytwo13 on April 10, Federation of Malaysian Consumers Associations (Fomca) secretary-general, Datuk Paul Selvaraj, and veteran economist, Tan Sri Ramon Navaratnam, said that a monopoly in the form of DNB, would not benefit consumers in the long run.
The same report also suggested having another company share in the distribution of the 5G network, or empower telecommunications companies, instead.
It was earlier reported that Anwar was supposed to discuss the matter with Communications and Digital Minister Fahmi Fadzil on April 11. However, during a buka puasa session with members of the media on April 10, Fahmi said he would be meeting the prime minister in the “next few days”.
Anwar and his Cabinet are expected to deliberate on the matter this week.
Telecommunications companies are watching the developments as they unfold, closely.
As Johari had said, dismantling the so-called monopoly is not a straightforward thing for the government, as it would need to look at the existing agreements with DNB’s development partner, Ericsson.
A second network will bring Huawei back into the fray. Ericsson had earlier knocked Huawei and Nokia out of Malaysia’s 5G race to win the RM11 billion, 10-year deal.
The deal is also being scrutinised by the West, especially by Washington.
Malaysia enjoys cordial relationships with the United States and China, even as both superpowers battle for economic and military dominance in this region.
In January, Washington stopped approving the renewal of licences to some US companies that had been selling essential components to Huawei.
With this in mind – not to mention the RM170 billion in investment commitments from China – the Malaysian government may most likely decide on a second network operator.
Some may argue that this would be a ‘populist’ move by Anwar’s ‘unity’ government, ahead of the upcoming state elections.
Be that as it may, as far as Malaysian consumers are concerned, having two network operators can only mean better service, more attractive rates and packages, and overall, a far healthier business and competitive environment.
