Malaysia’s plan to reach 95 per cent 5G coverage in populated areas remains on track even as a dispute emerges between Telekom Malaysia Bhd (TM) and Digital Nasional Bhd (DNB). Communications Minister Datuk Fahmi Fadzil said the issue is a commercial contract matter between the two companies and does not affect the national 5G rollout target.

Speaking in Putrajaya on 4 March 2026, Fahmi explained that Malaysia has already achieved around 80 per cent 5G coverage, a milestone that allows the government to move forward with its transition to a dual-network model for the country’s 5G infrastructure.

The government says the 5G rollout will continue

According to Fahmi, the disagreement between TM and DNB should not slow down Malaysia’s wider connectivity goals. He stressed that the dispute involves contractual terms between two licensed telecommunications companies under the Malaysian Communications and Multimedia Commission.

From the government’s perspective, the focus remains on expanding nationwide coverage and ensuring the rollout continues smoothly.

In simple terms, even if companies argue over contracts, the national infrastructure plan still moves forward. This is important because Malaysia’s 5G rollout has been designed in stages, and reaching the current 80 percent coverage level is already a key milestone.

TM and DNB disagree over contract termination

The dispute started when Telekom Malaysia exercised what it described as its contractual right to terminate its 5G Access Agreement with Digital Nasional Bhd earlier than planned.

TM said it complied with the agreement’s terms and conditions, including those related to the government’s shift toward a dual-network 5G model. The company maintains that its termination notice is valid and that it has retained all of its contractual rights.

However, Digital Nasional Bhd disagrees. The company said the agreement remains valid and binding, noting that the contract is scheduled to run until October 2032. According to DNB, the conditions required for early termination were not properly met.

Because of this, DNB has rejected TM’s termination notice and insists that the long-term contract is still in force.

Why this matters for Malaysia’s 5G ecosystem

Malaysia’s 5G rollout has been closely watched in the regional telecom industry. The country initially adopted a single wholesale network model, where DNB built the infrastructure and telecommunications companies purchased access.

Now, the government is transitioning toward a dual-network structure, which could introduce another infrastructure provider to increase competition and resilience in the network ecosystem.

Situations like the TM–DNB dispute highlight how complex telecom infrastructure projects can be. Even so, the government appears confident that the broader rollout timeline will remain unaffected.

For users, the key takeaway is simple. The nationwide expansion of 5G connectivity is still moving forward, and the current dispute is unlikely to stop Malaysia from reaching its long-term coverage goals.

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