By Rahman Husin.
As Putrajaya succumbs to telco tycoons’ demands – the fate of our Bumiputera vendors are in limbo. In March 2022, when Lim Guan Eng, National Chairman of Democratic Action Party (DAP) raised concerns over Putrajaya’s decision to allocate a substantial 61% of 5G implementation contracts to Digital Nasional Berhad (DNB) for qualified Bumi contractors, the response was surprisingly muted. It appeared that Guan Eng’s resentment had prevailed in disparaging the Bumiputera Empowerment Agenda even from afar; DAP and the Pakatan Harapan coalition were not even in power at the time.
However, the landscape had dramatically shifted once the Unity Government seized control of Putrajaya. Taking a page from its classic PH’s playbook, DNB was the first scapegoat to be beheaded. Prime Minister Anwar Ibrahim wasted no time in vowing to scrutinize the “monopoly” and lack of “transparency” in the procurement and awarding of contracts by DNB.
This criticism of “monopoly” however was eloquently countered by Ralph Marshall, DNB’s former CEO, who argued that the primary objective of the 5G network implementation was to transform Malaysia’s internet into a public utility, benefitting the people. Marshall emphasized the necessity of a government-linked entity that prioritized the public interest over profit, and prevented telcos, notorious for prioritizing their own gains, from hindering the timely implementation of 5G, as they shamefully did with the previous 4G rollout.
DNB has repeatedly addressed the accusations of lacking transparency by disclosing the true value of the bid submitted by Ericsson, which secured the contract as the primary 5G infrastructure provider in Malaysia. Their success was based on merit and cost-effectiveness, with their bid being a whooping RM700 million lower than that of their closest competitor. Astonishingly, despite these compelling facts, the government led by Anwar and his allies seems to turn a blind eye.
The course of Malaysia’s 5G journey took a decisive turn on May 3rd when the Minister of Communications and Digital, Fahmi Fadzil, announced the transition from a single network operator (SWN) to a dual-network (DWN) framework, set to take effect in January 2024. This announcement triggered immediate reactions, with CelcomDigi and Telekom Malaysia Berhad swiftly canceling their subscriptions to DNB shares. These actions effectively thwarted the previous government’s endeavor to ensure telecommunications companies had a vested interest in DNB, guaranteeing that the main objective of making 5G internet a public utility would be realized.
As we gradually approach the new year or the point at which DNB’s 5G coverage reaches 80%, the telco industry landscape remains largely unchanged. Profit-driven telco conglomerates continue to dominate, rendering internet access an expensive commodity rather than an affordable public utility. Regrettably, the Bumiputera empowerment agenda finds itself sidelined once again, overshadowed by the insatiable greed of the telecom conglomerates.
One cannot help but wonder whether Fahmi’s proposed Entity B will willingly incorporate the Bumiputera agenda into their business strategies. Can the latest Task Force established under Fahmi’s leadership engage in meaningful discussions and successfully empower Bumi contractors and promote healthy competition?
Alas, it seems that the only tangible outcome will be the introduction of a “Rahmah 5G Package,” a band-aid solution to appease public dissatisfaction, while the fundamental issues of exorbitant internet prices and the absence of a comprehensive long-term plan remain unresolved. Despite the promising opportunities presented by the DNB-led 5G implementation and TERAJU’s empowerment plans, the aspirations of qualified and promising Bumi vendors are stifled by Putrajaya’s eagerness to appease corporate interests under the guise of “free market”.
In conclusion, the national 5G agenda, once championed as a vehicle for equitable socioeconomic progress, now finds itself in dire straits; held hostage by the powerful telco tycoons and sacrificed at the altar of their insatiable greed. As Malaysia marches towards a digital future, it is crucial to strike a delicate balance that ensures technological advancement while prioritizing the welfare and empowerment of all Malaysians. Only then can Malaysia’s true spirit of unity and progress be achieved, propelling the nation towards the economic forefront it aspires to be.
