Malaysia’s 5G rollout is entering a new phase. Digital Minister Gobind Singh Deo has confirmed that all liabilities of Digital Nasional Bhd (DNB) will be fully absorbed by its telco shareholders once the government completes its divestment from the company—a move that marks a major shift in the country’s digital infrastructure strategy.
From Public Funding to Private Responsibility
All funds have been fully utilised. With the government stepping back, three major mobile network operators—CelcomDigi, Maxis, and YTL Power—are now responsible for financing and operating DNB. Each holds a 19.44% stake and recently injected an additional RM116.67 million each to support DNB’s working capital, following earlier advances of RM233.23 million per company.
Since its inception, DNB has received:
- RM500 million in equity from the government (2021)
- RM450 million shareholder loan from MOF Inc (2023)
- RM800 million receivables purchase agreement (2021)
- RM1.5 billion government-guaranteed loan (2023)
Dual 5G Network Model in Play
The transition follows the government’s decision to allow a second 5G network, tasking U Mobile with its development. However, Gobind emphasised that this second rollout won’t proceed until DNB’s telco shareholders repay the government’s initial funding. No timeline has been disclosed for this repayment.
Shareholder Agreement as Safeguard
Gobind reassured Parliament that DNB remains aligned with its business plan and is well-managed. The shareholder agreement not only facilitates the government’s exit but also ensures financial sustainability moving forward. Below is the current shareholding breakdown:
- MOF Inc - 41.7% stake
- CelcomDigi - 19.44% stake
- Maxis - 19.44% stake
- YTL Power - 19.44% stake
Financial Safeguards in Place
Gobind assured Parliament that the shareholders' agreement includes mechanisms to ensure DNB’s financial sustainability post-divestment. He also reiterated that the second 5G network won’t launch until the telcos repay all government funding tied to DNB—though no timeline was given.
Gobind: DNB liabilities to be fully borne by telco shareholders after govt exits
— Gobind Singh Deo (@GobindSinghDeo) September 2, 2025
“The telco companies that are shareholders of DNB are committed to financing and operating the company without any additional financial implications for the government once the government…
What This Means for Malaysia’s 5G Future
With the dual 5G network model now in play, DNB’s role remains pivotal. Gobind noted that the company is well-managed and aligned with its revised business plan, though details remain under wraps. This shift marks a major milestone in Malaysia’s digital infrastructure journey—where private telcos now hold the reins to drive 5G rollout, innovation, and competition.
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