00:02With Digital Nasional Berhad set to undergo a shareholding overhaul,
00:07Bersatus Wan Faizal Wan Ahmad Kamal has urged the government to ensure Malaysia retains
00:13both its Western and Chinese 5G technology options.
00:17Speaking in the Dewan Rakyat recently, the Macang MP said Putrajaya must preserve them
00:23as viable alternatives to safeguard the country's digital sovereignty
00:27and maintain investor confidence.
00:30D&B officially launched its 5G network five years ago
00:33using technology supplied by Swedish telecommunications giant Ericsson.
00:38In 2024, Malaysia began its transition to a dual network model
00:43with U-Mobile selected to spearhead the second 5G rollout
00:46built on technology from leading Chinese firms Huawei and ZTE.
00:52With the government exiting as shareholder,
00:54Selkom Digi, Maxis and YTL Power are expected to hold equal stakes in D&B.
01:01Putrajaya, however, will retain a golden share,
01:04giving it strategic oversight of the national 5G network.
01:08The move will give the three telcos greater influence over spending decisions
01:12and future technology procurement.
01:14However, no changes are expected to D&B's 10-year partnership with Ericsson,
01:19which began in 2021.
01:22But what if later decisions leave the two networks gravitating towards the same set of suppliers?
01:28Analyst Jamil Ghani warns that this could expose them to supply disruptions
01:32and common software vulnerabilities.
01:34On the other hand, keeping different technologies will help businesses protect their investments.
01:40Frost & Sullivan says it will allow Malaysia to accommodate companies
01:45with different security and procurement requirements,
01:48an advantage Wan Faizal highlighted in parliament.
01:51So, if we have two systems, D&B and what U-Mobile is doing,
01:55I think we can take the work from the two or the other side of it.
01:59For manufacturers, the benefit is practical.
02:02Supply chain industry leader Lorella Chia says different network options
02:07will allow them to integrate legacy machinery with newer equipment,
02:11avoiding the need to completely overhaul their systems.
02:15Businesses also need the assurance that their systems will continue to receive support.
02:20Norizan Mohamed, an economist with the International Islamic University Malaysia,
02:25wants that uncertainty could see businesses delay spending
02:28on customized systems, integration and training to their detriment.
02:32One Faizal also wants Poochajaya to protect D&B's existing technology standards.
02:38But that raises the question of whether such matters should be determined by policy
02:42or left to businesses and their suppliers.
02:46The Asia Group's Asrohadi Abdullah Sani says clear governance and procurement rules
02:51are needed to keep both 5G networks distinct, competitive and sustainable,
02:55even amid changes in ownership or technology suppliers.
02:59Analyst Samirul Arif Othman also believes clear safeguards are needed
03:04to keep the two-technology ecosystem distinct over the long term,
03:08including rules on supplier changes, independent reviews,
03:12customer notifications and migration arrangements.
03:15Today's supplier arrangements do not guarantee that Malaysia
03:18will always have two different technology options.
03:22The real test is whether businesses investing today
03:25can still rely on that choice years down the road,
03:28even if network ownership changes.
03:31Adrienne Fernandez, FMT
