Many quarters in Malaysia have expressed concern over the award of the second 5G network contract to U Mobile, a smaller digital provider.
The Malaysian Communications and Multimedia Commission’s suggestion that U Mobile could collaborate with other telecoms operators in this venture appears to be an acknowledgement of the firm’s limitations.
Communications Minister Fahmi Fadzil now says he, his deputy and top officials from his ministry were not involved in the decision. Instead, he claims the MCMC had independently chosen U Mobile.
Given the widespread public concerns, Aliran would like to know who the ultimate decision-makers were in the appointment of U Mobile and on what basis the award was made. Was there transparency and accountability in the pre-tender, post-tender and decision-making stages?
One reason for our concern is that the company’s largest shareholder is a foreign entity, Straits Mobile Investments Pte Ltd, which has a 48.3% stake. The firm is linked to the Singapore government’s investment arm, Temasek Holdings.
Even though U Mobile has said it would divest its foreign ownership and bring it down to 20%, we question the wisdom of awarding the deal in such a strategic sector to a company controlled by a foreign entity. And not just any foreign company but one ultimately linked to a foreign government. Is it prudent, especially for security reasons, to allow a foreign entity to gain a foothold in such a strategic Malaysian sector?
Another concern is that the selection hints of a return to crony capitalism – an abhorrent practice that Pakatan Harapan had vowed to eliminate, not encourage.
- Sign up for Aliran's free daily email updates or weekly newsletters or both
- Make a one-off donation to Persatuan Aliran Kesedaran Negara, CIMB a/c 8004240948
- Make a regular pledge or periodic auto-donation to Aliran
- Become an Aliran member
The whole rollout of 5G infrastructure is mired in controversy with parties eyeing quick or easy returns, as is common with many mega-projects. This is why many welcomed Prime Minister Anwar Ibrahim’s announcement at Budget 2025 that the government would shift its focus from mega-projects to public-interest projects.
Aliran had also looked forward to a government procurement law that would provide greater oversight, accountability and transparency in procurement decision-making. Such a law should ideally provide for the timely publication of procurement-related information at the pre-tender and post-tender stages. It should also ensure that government procurement is free from any executive influence.
But this law is taking too long to materialise. Last year, First Deputy Finance Minister Ahmad Maslan said a government procurement law was expected to be tabled in the second quarter of this year. What happened? Who is holding it back? Will the bill be made public before it is tabled in Parliament? It should be, for it is such a crucial bill that requires maximum feedback from all concerned quarters.
To uphold transparency and accountability, the government must thoroughly explain all this to ease the public disquiet. It should also tell us when we can expect the government procurement bill to be made available for public scrutiny before it is tabled in Parliament.
Aliran executive committee
7 November 2024
- Tegakkan maruah serta kualiti kehidupan rakyat
- Galakkan pembangunan saksama, lestari serta tangani krisis alam sekitar
- Raikan kerencaman dan keterangkuman
- Selamatkan demokrasi dan angkatkan keluhuran undang-undang
- Lawan rasuah dan kronisme
