Investors more comfortable with dual 5G network, says EU envoy

PETALING JAYA: Malaysia’s dual 5G network is crucial to maintaining confidence among European investors, as it provides access to a technology ecosystem that aligns with their business needs, according to an envoy.

European Union (EU) ambassador to Malaysia Rafael Daerr said the country’s 5G connectivity, built on a wholesale dual-network approach, has been successful.

However, he stressed the importance of preserving this progress by avoiding changes to the current framework.

“Businesses and potential investors have indicated that any shift towards a single-technology ecosystem could influence their investment decisions,” he told FMT.

Daerr was referring to growing concerns among European investors that privatisation could result in the abandonment of the dual-network approach, potentially discouraging businesses and prospective investors.

In March, CelcomDigi Bhd and Maxis Bhd each paid RM327.87 million to acquire their agreed stakes in Digital Nasional Bhd (DNB) from Minister of Finance Incorporated (MoF Inc).

In a filing with Bursa Malaysia, CelcomDigi said it would also assume its share of a loan owed to MoF Inc, including interest and shareholder advances amounting to RM161.17 million.

“European investors want to come to Malaysia, but they are looking for secure cyber environments, protection of intellectual property, and supply chain resilience.

They are also seeking stability and transparency in a broader sense,” he said.

Daerr noted that many European firms are key contributors to technology transfer, skilled job creation, and export growth, making them important partners in Malaysia’s long-term economic and innovation ambitions.

As Malaysia expands its 5G ecosystem, he said maintaining policy clarity and continuity would be crucial to preserving investor confidence.

Daerr also welcomed the dual-network model, saying it provides businesses with access to both Chinese and Western technology ecosystems, offering greater flexibility to operate within infrastructure that best suits their needs.

“This means that you will soon have two complete networks built on separate technology stacks — one Chinese, which supports related technologies and businesses, and one Western, which is better suited to the EU and other Western partners.

“Malaysia will benefit from the best of the West and the best of the East—to use Prime Minister Anwar Ibrahim’s own words.”

In 2023, Anwar said the move to a dual-network model would allow greater participation by China’s Huawei, giving Malaysia access to both Western and Eastern technologies despite concerns from some Western countries, which preferred Malaysia to maintain its original plan.

Malaysia’s 5G rollout began in 2021 under a single wholesale network model, with DNB appointing Swedish telecommunications giant Ericsson to build the country’s first nationwide 5G network.

Since 2024, the government has adopted a dual-network framework, with DNB continuing as the first wholesale provider while U Mobile develops a second 5G network using infrastructure supplied by Huawei Technologies and ZTE Corp.