What DNB’s ownership shift means for Malaysia’s 5G choices

The Malaysian government's planned exit from its majority stake in Digital Nasional Berhad (DNB) signifies a major shift in the country's 5G infrastructure landscape. With CelcomDigi, Maxis, and YTL Power set to become major shareholders, the telcos will assume greater influence over DNB's operations, costs, and investment decisions.

However, this ownership transition does not guarantee a change in the technology providers behind the networks. DNB has been collaborating with Ericsson since 2021, and the concern is whether future procurement decisions could limit the technology options available to both networks. This potential lack of technological diversity may expose both networks to common software vulnerabilities, supply disruptions, or export restrictions, as warned by Jamil Ghani, a PhD researcher at Singapore’s S Rajaratnam School of International Studies.

While different network environments could provide businesses with more options for system upgrades and supplier changes, smaller suppliers may face difficulties in switching technologies, as many rely on a mix of older machinery, newer automation, and various cloud platforms. Analysts suggest that clear governance and transparent procurement rules could help maintain distinct technology blocks, ensuring digital sovereignty and investor confidence.

However, the long-term success of this separation may depend on explicit policy commitments and safeguards, such as supplier change rules, independent assessments, customer notification, and transition arrangements.