Privatisation Of DNB To Reduce Govt's Financial Liabilities, Says Academician
By Fatin Umairah Abdul Hamid and Nur Athirah Mohd Shaharuddin
KUALA LUMPUR, March 8 (Bernama) -- The privatisation of Digital Nasional Bhd (DNB) is expected to reduce the government’s financial liabilities and associated risks as the 5G network deployment transitions from a policy-driven phase to a fully commercial stage, according to an industry expert.
Universiti Teknologi Malaysia associate professor at the Faculty of Electrical Engineering, Dr Leow Chee Yen, said that since the major shareholders are now service providers that directly interface with end users, they have first-hand knowledge of current market conditions and actual demand.
“It is expected that DNB will become more commercially competitive to ensure the profitability of the 5G network.
“This benefits the telecommunication service providers, while Malaysians will be able to enjoy a cost-effective and high-quality network,” he told Bernama.
On Friday, CelcomDigi Bhd and Maxis Bhd each paid RM327.87 million to acquire their agreed proportions of Minister of Finance Incorporated (MoF Inc) shares in DNB.
In a filing with Bursa Malaysia, CelcomDigi announced it will assume its proportionate share of the MoF Inc loan, along with accrued interest and additional shareholder advances totalling RM161.17 million which form part of the option price.
Leow also noted that the current 5G network mainly serves mobile broadband users, although the technology is designed to support industry and enterprises through its capability to connect massive Internet of things (IoT) devices and support mission-critical applications.
However, he said, industry and enterprise adoption remains limited, mainly due to the lack of commercially successful use cases and high investment barriers.
That said, Leow suggested that DNB work closely with service providers, industry players, enterprises, the government and the wider community to develop innovative commercial use cases for 5G in order to unlock the network’s full potential.
He added that a fully private-led DNB is expected to be more commercially competitive and strategically adaptive to market demand in the telecommunications sector, as the acquisition would enable it to quickly adopt 5G technology updates and develop innovative solutions to reduce network operating costs, enhance efficiency and increase network utilisation.
Echoing Leow’s view, GlobalData Technology senior principal analyst Alfie Amir said having larger stakes provides major shareholders with greater control of the 5G network and enables closer alignment of the infrastructure with their respective business strategies.
He added that the move would optimise the industry’s performance, as telecommunications companies (telcos) have varying demand patterns and network usage across the country.
“With greater control, telcos will be able to address regional demand by expanding the 5G network to offload traffic in congested areas,” he said.
Alfie said greater network control would empower telcos to leverage their existing partners to drive broader collaborations and co-development of 5G solutions.
For example, he said, CelcomDigi could extend its AI Experience Centre (AiX) initiatives beyond proof-of-concept (PoC) facilities to live network environments, while Maxis could do the same with its 5G Alliance Programme.
“This is also crucial for these telcos and the country to close the innovation gap with its global peers,” he said.
According to GlobalData, 5G subscribers accounted for 58 per cent of Malaysia’s mobile subscribers in 2025 and this is expected to increase to 67 per cent this year.
-- BERNAMA