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In recent years, Malaysia has achieved recognition as one of the top three performers in 5G network implementation worldwide, trailing only the United Arab Emirates and South Korea. The move from 4G to 5G has massively enhanced network performance, offering download speeds 13 times faster and upload speeds five times quicker, fundamentally transforming digital connectivity.
Surpassing expectations, progress is a year ahead of schedule, achieved without cost overruns, with 5G coverage now extending to over 70% of the country. By the close of October 2023, Malaysia has marked an impressive milestone with 3.6 million 5G service subscriptions, signifying a commendable adoption rate of 10.8%.
Recent data showcased Malaysia’s exponential growth. The country now ranks third globally in 5G download speed, clocking at 485.25Mbps in the third quarter of 2023, according to Speedtest Intelligence data.
This progress propelled Malaysia’s standing on the Speedtest Global Index, soaring 45 places from 86th in September 2021 to 41st in September 2023. This ranking outpaces neighbouring countries like Indonesia, Thailand, the Philippines and Vietnam, as well as developed markets such as the United Kingdom, Japan and Germany.
These developments are poised to revolutionise daily experiences and unlock unprecedented possibilities. Forecasts predict a potential GDP surge of RM150 billion and the creation of 750,000 new jobs by 2030. Industries across oil and gas, ports, tourism, education, healthcare, agriculture, manufacturing, retail, and utilities stand to benefit immensely.
DNB’s pivotal role lies in establishing a unified wholesale network for 5G, streamlining infrastructure rollout, and ensuring resource efficiency, cost-effectiveness, and equitable 5G access for both urban and rural populations.
The estimated cost of this ambitious rollout, spearheaded by DNB under the Minister of Finance Inc., amounts to RM16.5 billion by 2030, primarily allocated for network equipment and infrastructure (RM12.5 billion) and corporate expenditures (RM4 billion). Remarkably, this deployment is exclusively funded by the private sector.
Comparatively, this investment aligns favourably with earlier estimates from the MyDIGITAL Blueprint and National 5G Task Force Report, projecting the incremental cost of upgrading a single 4G network to 5G at RM7.5 billion.
Plans for a second 5G network, managed by a separate entity were initiated by the government on 9 May 2023. The 5G Task Force aims to ensure a seamless transition from the Single Wholesale Network (SWN) model to the Dual Network (DN) model.
Following this, five major Mobile Network Operators (MNOs) have officially sealed Share Subscription Agreements (SSAs) with Digital Nasional Berhad (DNB). This historic event took place at TRX Exchange 106, graced by the presence of YB Fahmi Fadzil, Minister of Communications & Digital, as the guest of honour.
These SSAs solidify the collective subscription of 70% equity or 14% each in DNB by the MNOs, with the Government, represented by the Minister of Finance (Incorporated) (MOF Inc), maintaining the remaining 30% and holding a Special Share, subject to satisfactory due diligence. Each MNO’s commitment through the SSAs involves injecting approximately RM233 million, earmarked to fulfil DNB’s funding necessities.
This milestone achieved through the SSAs reflects the significant progress spearheaded by the Task Force for the Implementation of 5G Dual Network in Malaysia, consisting of representatives from the Ministry of Finance, Ministry of Communications and Digital, Malaysian Communications and Multimedia Commission (MCMC), DNB, and the MNOs.
The importance of equitable opportunities for telecommunication equipment vendors is underscored by the government’s open-door policy, ensuring fair access for core networks, private networks, fibre connections, and backhaul installations.
Ultimately, seamless and cost-effective access to 5G remains pivotal for the populace, positioning Malaysia as an attractive business hub on the global stage. The strategic evolution toward 5G promises a future where Malaysia thrives as a technological pioneer, setting new standards for connectivity and innovation.
