KUALA LUMPUR (March 9): The RM15 billion cost of the 5G infrastructure development will be borne by the private sector, said Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.
Speaking at the 16th Kuala Lumpur Islamic Finance Forum (KLIFF) 2021 today, he said Digital Nasional Bhd (DNB), the government-owned Special Purpose Vehicle (SPV) set up to roll out Malaysia’s 5G network, will be launching an open tender for the 5G infrastructure development, which estimated to cost RM15 billion.
“On 5G, Digital Nasional Bhd will offer 5G services via a wholesale model that is regulated to ensure better transparency and implementation,” he said.
Earlier, the Malaysian Communications and Multimedia Commission (MCMC) highlighted that DNB will be subjected to the regulatory oversight of MCMC, as it will be licensed to operate under the Communications and Multimedia Act 1998 (CMA 1998).
The regulatory body said it will regulate and monitor DNB to ensure, among others, the optimum use of spectrum and that all telecommunications service providers will have open, fair and equal access in obtaining wholesale 5G network services for the development of retail services based on the 5G technology.
“The objective of making Malaysia a digitalised nation as with the announcement of MyDigital recently, will require a robust, resilient and speedy effort by all parties, whilst adhering to the right governance and regulations.
“By removing the need for existing telecommunications companies to invest in 5G networks, their efforts and resources can continue to be focused on improving and expanding 4G services and fibre networks under JENDELA, so crucial for the success of 5G deployment. This at the same time will ensure that the digital gap can be minimised,” it said in a statement issued earlier.
Separately, Zafrul highlighted that Islamic Finance has shown unrelenting resiliency and continues to attract investors during these uncertain times.
“In 2020, Shariah indices have outperformed conventional indices for two consecutive years. This has resulted in more demand for shariah based investments, with total Islamic assets under management growing from 22% of overall assets in 2017, to 24% by end of 2020 with a total value of RM217 billion,” he added.
Zafrul also said through Malaysia’s Shared Prosperity Vision 2030 (SPV 2030), the government is aiming to tap on the RM3 trillion-US Dollar Halal market.
“Malaysia’s firm commitment in promoting the Halal industry can be seen in our 14 billion Ringgit investments to develop Halal Parks, where Halal-oriented businesses will benefit from infrastructure, support services and tax incentives.
“This will not only drive Malaysia’s ambitions to be a global Halal hub, but will also help the world become more resilient post-Covid-19 pandemic, guided by the Islamic economy’s core principles of socio-economic and environmental sustainability, as well as social equity, fair trade and ethical consumerism,” he said.
KLIFF is an annual prestigious event in the global Islamic finance space and is organised by Centre for Research and Training (CERT) in association with Amanie Advisors, Association of Islamic Banking Institutions Malaysia (AIBIM), Association of Shariah Advisors in Islamic Finance (ASAS), and Messrs Hisham, Sobri & Kadir (HSK).
Source: The Edge Markets – 9 March 2021 (Tuesday)