KUALA LUMPUR – The government is giving another two weeks to the mobile network operators (MNOs) to undertake the signing of the share subscription agreement (SSA) with the Finance Ministry’s special purpose vehicle Digital Nasional Bhd (DNB).
Finance Minister Tengku Datuk Seri Zafrul Aziz said the additional time from Wednesday, which is the final date for the signing of the SSA, was given following the decision by two mobile network operators (MNOs) to take up stakes in DNB.
He said at present, Telekom Malaysia Bhd (TM) dan YTL Communications Sdn Bhd (YTL) have been given the approval by their board of directors to go ahead with the signing of the SSA.
“Celcom Axiata Bhd and Digi.com Bhd need more time to obtain an approval from their board of directors with regards to the suggestion to increase their shareholding in DNB following two MNOs pulling out from SSA.
“This process is ongoing and will probably conclude in one or two weeks’ time,” Tengku Zafrul told reporters after attending a dialogue held by the 30% Club at the Asia School of Business here today.
DNB in a previous statement said two MNOs decided to pull out in the eleventh hour from signing the SSA with DNB.
“Although the SSA was ready to be signed on August 30 and all six MNOs have given their written confirmation to take up equity shareholding in DNB, there was a change in the decision of two MNOs at the last minute.
“One of the MNOs decided not to subscribe for DNB’s shares and another MNO declined to give any decision.
“Therefore, the SSA needs to be re-examined by the four MNOs which are still involved and to obtain approval from their respective companies,” said the statement.
Tengku Zafrul clarified that even though Maxis and U Mobile have decided to pull out from signing the SSA, they can still utilise the 5G facilities offered by DNB.
Meanwhile, he said there is also the possibility shares in the state-owned 5G agency would be offered to foreign MNOs.
“The option to offer equity shareholdings to foreign MNOs is there because various foreign MNOs have expressed their desire to contribute to the local 5G network development.”
Tengku Zafrul, however, declined to name the foreign MNOs.
“The government’s policy is to prioritise domestic MNOs, but it does not rule out the possibility of offering the remaining shares that can be subscribed in DNB to foreign MNOs.
“Of course, the decision impacts the 5G implementation timeline (in terms of delaying it) for the people and businesses, and we need to accept the fact that Malaysia is (already) lagging behind in terms of 5G applications compared with neighbouring countries in the region,” he told Bernama earlier.
The 5G infrastructure development is very important for Malaysia to build a digital-based economy with the potential to achieve various multiplier effects, such as a cumulative rise in the gross domestic product of up to RM650 billion for the 2022-2030 period, as well as generate 750,000 skilled and high-income jobs, Tengku Zafrul added.
“It will also benefit nine industries and sectors, and will encourage the development of 15 smart cities.”
The Finance Ministry, via its equity shareholding in DNB, will ensure that the 5G network and infrastructure is developed as soon as possible, and that DNB remains on track to achieve 80% 5G coverage in populated areas by 2024. – The Vibes, September 2, 2022
