Kuala lumpur: The privatisation of Digital Nasional Bhd (DNB) is expected to reduce the government's financial liabilities and associated risks as the 5G network deployment transitions from a policy-driven phase to a fully commercial stage, according to an industry expert.
According to BERNAMA News Agency, Universiti Teknologi Malaysia associate professor at the Faculty of Electrical Engineering, Dr Leow Chee Yen, stated that since the major shareholders are now service providers that directly interact with end users, they possess first-hand knowledge of current market conditions and actual demand.
Dr. Leow emphasized that it is anticipated that DNB will evolve to become more commercially competitive to ensure the profitability of the 5G network. This transformation is expected to benefit telecommunication service providers, while Malaysians will be able to enjoy a cost-effective and high-quality network.
Recently, CelcomDigi Bhd and Maxis Bhd each paid RM327.87 million to acquire their agreed proportions of Minister of Finance Incorporated (MoF Inc) shares in DNB. In a filing with Bursa Malaysia, CelcomDigi announced its plan to assume its proportionate share of the MoF Inc loan, along with accrued interest and additional shareholder advances totaling RM161.17 million, which form part of the option price.
Leow also highlighted that the current 5G network primarily serves mobile broadband users, although the technology is designed to support industry and enterprises by connecting massive Internet of Things (IoT) devices and supporting mission-critical applications. However, industry and enterprise adoption remains limited, mainly due to the lack of commercially successful use cases and high investment barriers.
He suggested that DNB collaborate closely with service providers, industry players, enterprises, the government, and the wider community to develop innovative commercial use cases for 5G to unlock the network's full potential. A fully private-led DNB is expected to be more commercially competitive and strategically adaptive to market demand in the telecommunications sector. The acquisition would enable it to quickly adopt 5G technology updates and develop innovative solutions to reduce network operating costs, enhance efficiency, and increase network utilization.
Echoing Leow's view, GlobalData Technology senior principal analyst Alfie Amir remarked that having larger stakes provides major shareholders with greater control over the 5G network and enables closer alignment of the infrastructure with their respective business strategies. He added that the move would optimize industry performance, as telecommunications companies have varying demand patterns and network usage across the country.
Alfie stated that with greater control, telcos will be able to address regional demand by expanding the 5G network to offload traffic in congested areas. Greater network control would empower telcos to leverage their existing partners to drive broader collaborations and co-development of 5G solutions.
For instance, CelcomDigi could extend its AI Experience Centre (AiX) initiatives beyond proof-of-concept facilities to live network environments, while Maxis could do the same with its 5G Alliance Programme. Alfie noted that this is also crucial for these telcos and the country to close the innovation gap with its global peers.
According to GlobalData, 5G subscribers accounted for 58 percent of Malaysia's mobile subscribers in 2025, and this is expected to increase to 67 percent this year.