Analysts are noting a lack of visibility in the 5G market in Malaysia, citing uncertainty around pricing and shareholding at DNB as major issues. Despite this, some experts believe there is potential for economic growth, particularly in the semiconductor industry in Southeast Asia. The Malaysian government recently allowed competition with a second operator in the 5G space, leading to a multi-tiered compromise settlement signed in December. This has prompted due diligence into DNB operations and potential stake acquisition by local MNOs or joint venture formation.
DNB has already rolled out over 80% of its 5G network, with nearly 10 million subscribers as of January. However, due diligence reviews are still ongoing, leading to speculation about the future of the 5G landscape in Malaysia. Industry insiders are reconsidering the necessity of a second network and debating whether it would be more beneficial for local players to acquire a majority stake in DNB or for a foreign entity to invest in the company. The cost of DNB’s roll-out, estimated at over $3.44 billion, has sparked discussions within the government and private sector about the best way forward.
The uncertainty surrounding the 5G market in Malaysia is further complicated by the potential involvement of China’s Huawei as a technology partner. With ongoing debates about shareholding and network ownership, industry experts are questioning the viability of the SWN model and considering various options for the future of 5G in the country. The lack of clarity on pricing and operational readiness is hindering progress in the market, leading to ongoing discussions and negotiations among key players in the industry.
Despite the challenges and uncertainties, Malaysia’s position in the semiconductor industry presents a potential opportunity for growth. The country’s strategic location in Southeast Asia and existing infrastructure make it well-placed to capitalize on the expansion of the semiconductor market in the region. While the 5G market in Malaysia remains in a holding pattern, there is optimism about the potential for economic development and technological advancement in the coming years.
As discussions continue among government officials, industry executives, and MNOs, the future of Malaysia’s 5G market remains uncertain. The ongoing due diligence process and debates about network ownership and stake acquisition will likely shape the direction of the market moving forward. With potential opportunities for growth in the semiconductor industry and the need for clarity on pricing and network operations, stakeholders are closely monitoring developments to determine the best strategy for advancing 5G technology in Malaysia.
