Business

Telco industry players want tax breaks, broadband funds in Budget 2022

Tax incentives could encourage folk to migrate to newer phones following 5G implementation, one says

Updated 4 years ago · Published on 15 Oct 2021 11:55AM

Telco industry players want tax breaks, broadband funds in Budget 2022
Malaysia’s 5G network is set to begin humming by the end of the year. – Pixabay pic, October 15, 2021

KUALA LUMPUR – A mobile device provider hopes the government would consider tax breaks for 5G-enabled devices in the market in the upcoming Budget 2022 to encourage people to migrate to newer phones following the implementation of the 5G network by year-end.

Oppo Malaysia said the incentive would help more people obtain the latest technology devices to support both their personal and business needs as life becomes increasingly digital.

“Oppo believes that everyone should be given equal opportunity to enjoy the adoption of 5G with the ease of obtaining 5G-enabled devices.

“We are optimistic that with the National Digital Network (Jendela) implementation, it will help the nation achieve its digital agenda goals and that Oppo is supporting the telecommunications sector by bringing in highly accessible 5G-enabled devices,” it said.

The mobile device provider also hopes that the government will continue the allocation for smartphone subsidy under Bantuan Prihatin Nasional (BPN) as it will help the B40 community afford a decent 4G mobile device amid the plan to sunset the 3G network this year.

“The subsidy is seen as an important aid to the B40 community as online working and learning activities will continue to be the norm in the endemic environment,” it said.

– Bernama pic, October 15, 2021
– Bernama pic, October 15, 2021

In the meantime, satellite operator Measat Satellite Systems Sdn Bhd (Measat) wishes to see further funds being allocated in Budget 2022 to help fill the broadband gap in locations without 4G or fibre coverage.

“This is especially the case in various Kampung Orang Asli across the Titiwangsa Range in Peninsular Malaysia and at sites in East Malaysia, which are far from broadband services.

“In order to create a more inclusive society across Malaysia, broadband connectivity should be easily accessible to the underserved rakyat such that every Malaysian has equal access to digital services, including ensuring children have uniform access to online education,” said Measat chief operating officer Yau Chyong Lim.

He also expressed Measat’s commitment in supporting the government's vision through the Jendela initiative and hope to install additional Measat ConnectMe Now services at remote locations to further serve the people with broadband connections nationwide and close the digital divide.

Meanwhile, Universiti Teknologi Malaysia (UTM) Adjunct Professor Tharek Abdul Rahman said Budget 2022 for the telecommunications sector should be allocated fairly to avoid any duplication in the use of resources towards the successful implementation of the 5G network.

“We have to ensure that the budget for the telecommunications sector should focus on sharing and optimising existing resources such as telecommunication infrastructures in order to fully utilise the usage of the network.

“Now is the important and critical time for the telecommunications industry to optimise and share the resources, so the impact on the cost of network usage will not be reflected to the users,” he said.

Tharek is hopeful that the government will lay out a policy under Budget 2022 that will benefit the people and help them recover from challenges posed by the pandemic.

Budget 2022 is scheduled to be tabled in the Dewan Rakyat on Oct 29, 2022. – Bernama, October 15, 2021

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