‘Best deal wins’: Malaysia not ruling out China’s Huawei as it eyes second 5G network

Malaysia will ‘honour’ the contract for Sweden’s Ericsson to roll out the first network, but says what comes next is up to ‘entity B’ and the ‘free market’

Digital minister says he’s not aware of any negotiations with Huawei, often accused by the West of spying for Beijing, but highlights that Malaysia can make its own decisions

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Published: 9:36pm, 3 May 2023Updated: 1:07am, 4 May 2023

Malaysia’s Digital Minister Fahmi Fadzil has reassured Swedish telecoms giant Ericsson that its multibillion-dollar contract to help with the nation’s 5G roll-out still stands, but stressed that the country is able to make deals with any entity it chooses as it eyes a second network.

The announcement on Wednesday was closely watched by industry insiders for indications of the Anwar administration’s views on China’s Huawei Technologies, which the West says enables spying for Beijing.

The Shenzhen-based firm has vehemently denied the claim, saying it is a victim of geopolitics amid the US-China rivalry.

Fahmi said during a press conference that the Malaysian government would proceed with a dual 5G roll-out, the first part being the network under development between Digital Nasional Berhad (DNB) and Ericsson.

The “contractual obligations” signed between DNB and Ericsson stand “and we will honour” that, Fahmi told reporters.

A second network is expected to start development in early 2024, the minister said, remaining coy on whether Huawei could be in the running for that 5G contract.