KUALA LUMPUR – Malaysia should not be pressured by the West in deciding whether it should include China’s Huawei in the nation’s 5G roll-out, as warnings of “security risks” by US and EU ambassadors could potentially be exaggerated, an observer said.
Universiti Teknologi Malaysia geostrategist Azmi Hassan said it was also unbecoming for foreign ambassadors to comment on a host government’s decisions over commercial contracts, especially when it involves ongoing deals.
This comes after US and EU ambassadors to Malaysia warned the government over risks to national security and foreign investments amid the government’s review of the 5G roll-out, which could see the Chinese telecommunications company provide infrastructure here.
“Since the review gives a chance to Huawei (to take part in the 5G roll-out), I think the ambassadors were compelled to comment on it.
“They (ambassadors) might have used national security risks as a justification to comment on the deal and to state their apprehension on the matter to the (Malaysian) government.”
According to the Financial Times earlier today, the US ambassador to Malaysia, Brian McFeeters, had sent a letter to the government in April warning of national security risks unless Malaysia sticks to its original plan for the 5G roll-out.
“Senior officials in Washington agree with my view that upending the existing model would undermine the competitiveness of new industries, stall 5G growth in Malaysia, and harm Malaysia’s business-friendly image internationally,” he said in the letter sighted by the news site.
“The United States and other countries prioritise a fair and transparent review process and contract sanctity, as does the international business community. Allowing untrusted suppliers in any part of the network also subjects Malaysia’s infrastructure to national security risks.”
Michalis Rokas, ambassador and head of the EU delegation to Malaysia, also issued a similar letter, saying the review would “likely impact negatively and significantly the contractual terms agreed upon at the time of the launch of the open tender”.
Rokas added that the EU had more than €25 billion (RM122.27) invested in Malaysia and that companies from Europe placed a “high value on clear policy direction”.
In February, Communications and Digital Minister Fahmi Fadzil said that the cabinet would decide on the fate of the country’s 5G roll-out plan by the end of March, including on the role of state-owned Digital Nasional Bhd.
The same month, The Vibes reported that some of the country’s biggest telecommunications companies have made a new bid to bring back the dual wholesale network rejected by the previous government.
These mobile operators – said to include Celcom, Digi, Maxis and U Mobile – are keen to test the resolve of the newly minted government and are said to have made a formal approach for their own 5G networks.
Despite the government’s review of the roll-out, Fahmi announced last month that 5G network coverage in Malaysia as of the end of March has reached 55%.
He also said this marked a positive development and showed that the government is on the right track in ensuring that the target of 80% of populated areas getting 5G network coverage before the end of 2023 could be achieved.
Malaysia no ‘small fish’ nation
Amid the situation involving US and EU ambassadors, Azmi drew parallels with a similar one faced by social media giant TikTok, in which the US government had cited national security reasons to force the social media outfit to abandon its parent company ByteDance.
“Being based in China, Huawei and TikTok have an obligation to Beijing if there is a request from the government.
“This is something already well-known, but as former prime minister Tun Dr Mahathir Mohamad said in 2018, Malaysia has nothing to hide, so Huawei’s presence (here) is not a major concern to the Malaysian government in terms of national security.
“Although Tun (Dr) Mahathir may have been sarcastic, he’s saying that companies such as Huawei do not pose security risks.”
Azmi also noted that other nations in Asean and the European Union use Huawei for their telecommunications industry, as the company provides cheaper alternatives compared to other companies in terms of 5G infrastructure.
“Should we (Malaysia) be concerned about this warning from the US ambassadors? Well, not so much. I think the more important thing is that any company that can provide cheaper 5G infrastructure or services should be welcomed, whether it is Huawei or otherwise.”
He said the decision by the government, in terms of the review of the 5G roll-out, should put the nation’s interests first as this involves its own spending and the quality of services that Malaysia receives.
“We should not use the constraints of warnings involving national security factors from two ambassadors,” Azmi said.
“What matters most is that we trust China and the US on any decisions (we make) being in the best interest of Malaysia, whether on economics or geopolitics.
“We should not be too hyped up in terms of the warnings by the US regarding Huawei, in that Beijing can use this as a window to extract information (from Malaysia).”
On whether the remarks by McFeeters and Rokas could trigger a diplomatic storm in Malaysia, Azmi said: “Perhaps they presume that Malaysia is a ‘small fish’ nation.” – The Vibes, May 2, 2023
