Malaysia accelerates 5G progress with private network focus and telco pact

• Malaysia plans to present 40 private 5G use cases by 2025
• Telcos ready to sign equity pact for a second 5G network
• Initiative aims to position Malaysia as a regional 5G leader by 2025

Malaysia has unveiled an ambitious plan to showcase at least 40 private 5G network use cases across various industries by 2025, underscoring the country’s goal of becoming a regional leader in 5G technology and digital innovation. Sectors such as manufacturing, oil and gas, logistics, healthcare, and plantations are set to benefit from the advanced connectivity and operational efficiencies offered by these state-of-the-art private wireless networks.

Digital minister Gobind Singh Deo emphasised the significance of this development in a statement, noting, “This ongoing effort to accelerate 5G adoption among various enterprises is crucial for Malaysia’s digital transformation. It positions Malaysia as a 5G leader during our ASEAN [Association of South-east Asian Nations] chairmanship in 2025 and strengthens our hold on digital-related investments and benefits in the region.”

By focusing on practical use cases and fostering industry partnerships, Malaysia aims to not only improve its technological capabilities but attract greater investment and drive innovation across the board.

In tandem with this initiative, the country’s five main telcos – Maxis, CelcomDigi, U Mobile, YTL Communications and Telekom Malaysia – are poised to finalise an equity share agreement with Digital Nasional Berhad (DNB), the government-owned wholesale 5G network operator. This pact aims to implement a second 5G network, focusing on industry and smaller enterprises. The deadline for the share subscription is 21 June 2024, and the operators have expressed readiness to sign the agreement, with Maxis noting in this announcement that it is ready to move ahead and "participate in the rollout of the second 5G network."

Fahmi Fadzil, the communications minister, was optimistic about the forthcoming network, stating, “They must complete the share subscription agreement by 21 June and, generally, they are ready to sign it.”

Malaysia’s rapid rollout of 5G networks has achieved over 80% coverage in populated areas within two years, with more than 13 million 5G subscribers to date. The collaboration between DNB, the government, and various industries is considered a pivotal factor in driving this adoption. 

However, the rollout has not been without its challenges. Last month, negotiations between DNB and the country’s major telcos faced hurdles, which lead to the decision to allow a second 5G network operator in order to introduce competition being reconsidered. The breakdown in talks, primarily due to mistrust over DNB’s secrecy regarding finances and operations, has reportedly complicated Prime Minister Anwar Ibrahim’s policy efforts.

- Joana Bagano, Contributing Editor, TelecomTV