5G roll-out: will 61% Bumiputera quota for vendors be new norm, Guan Eng asks

KUALA LUMPUR – DAP secretary-general Lim Guan Eng has taken Putrajaya to task over the 61% Bumiputera quota for local vendors involved in the roll-out of the national 5G network.

In a statement today, he asked if this 61% quota will end up becoming the government’s benchmark for major procurement contracts in the future.

“The government should clarify this increase to 61% of Bumiputera interest, whether this is now the new benchmark for major government procurement contracts.

“For the East Coast Rail Link, the previous Barisan Nasional government had set Bumi interest and participation of local vendors at 40%.”

The Bagan MP added that despite the 61% quota, Bumiputera firms can still bid for the non-Bumiputera quota through the open tender process.

He then urged the government to undertake full consultations with all stakeholders, given the issue deals with justice and fair play in an open market.

“Now there is a new benchmark of 61%. Can the government or MCA president, MIC and GPS ministers clarify when this was approved in cabinet?”

Singling out Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz, Lim sought clarification over the government’s plan to maintain the single wholesale network (SWN) model while offering 70% stake in Digital Nasional Bhd (DNB) to mobile network operators (MNOs).

“Zafrul said that while maintaining the SWN model, there will be no additional financial implications in relation to DNB’s contract with appointed 5G network hardware provider Ericsson.

“Zafrul added that Ericsson has drawn up an implementation plan by optimising contract work and services for local vendors, with an estimated 61% prioritised for Bumiputera interest.” 

On March 16, the Finance Ministry announced that DNB will remain Malaysia’s sole 5G project owner and a 70% stake would be offered to MNOs such as Maxis Bhd, Axiata Group, Digi.com, and U Mobile. – The Vibes, March 19, 2022