KUALA LUMPUR, 19 APRIL 2024 – Digital Nasional Berhad (DNB) would like to address several misleading claims made by Channel News Asia (CNA) in the article entitled “Malaysia’s billion-dollar 5G roll-out stumbles as deal breaks down between powerful telcos, state-owned operator” published on 19 April 2024 and subsequently reported by several other media.

The article alleged that DNB has not been transparent in its internal operations, with regards to the awarding of contracts to third party vendors, in particular for Ericsson’s 5G network equipment, software procurement and ‘a potentially lucrative cloud services platform’.

DNB strongly denies these allegations and rejects the insinuation of any impropriety in our governance and procurement practices. DNB’s tender and procurement processes are structured according to the strictest governance standards and best practices.

DNB has always been open and transparent in its awarding of tenders and contracts – this matter has been addressed in detail various times in Parliament and reported in the media, repeatedly disproving the allegations.

The awarding of the 5G network equipment contract involved a rigorous evaluation process, with Ericsson obtaining the highest score across all prerequisites. The tender process was structured by an independent global professional services firm, and involved some 50 local and international experts from across 10 countries with 5G network rollout experience. The process also has been reviewed by multiple parties, including during reviews of the 5G network policy by the Malaysian Cabinet in 2022 and 2023.

The process with respect to the Share Subscription Agreements (SSA) signed with the 5 Mobile Network Operators (MNOs) is ongoing. We strongly deny the claims made otherwise but are unable to comment in specific terms due to confidentiality restrictions. Given DNB’s position as a public utility serving the public interest, it is critical for published reports to be verified and based on accurate information.

DNB remains focused on continuing to deliver one of the best-performing and most reliable 5G networks in the world on an accelerated basis and within cost, and on increasing 5G adoption across industries, enterprises and the public, to help accelerate Malaysia’s digital transformation.