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Fahmi: Govt won't entertain lobbying for 5G network tenders

KUALA LUMPUR: The government will not consider any lobbying for tenders in the rollout of the 5G network.

Communications and Digital Minister Fahmi Fadzil said the government would honour the contracts signed with companies that were awarded tenders.

"As a government that upholds the rule of law, we will honour the sanctity of the contracts that have been signed.

"We will not entertain any lobbying done through media statements, whether in local or foreign media," he said in his winding up speech during the Supply Bill 2023 debate in the Dewan Rakyat today.

Fahmi said this when Chong Zhemin (Pakatan Harapan-Kampar) asked about the ministry's take on a report by the Financial Times titled "Huawei fights for a role as Malaysia reviews 5G tender".

Chong said the report claimed China's largest telecommunications equipment manufacturer was among a few companies aiming to obtain 5G network tenders in Malaysia.

He asked Fahmi to clarify the implications on the country's financial status if the tender awarded to Sweden's Ericsson unit, Ericsson (Malaysia) Sdn Bhd, to design and build the national 5G network was given to Huawei instead.

"We will not entertain them and we will not be swayed.

"Even if you present 10 pages, I will not read any of them and will stick to what is in front of me."

In 2021, Digital Nasional Bhd (DNB) appointed Ericsson Malaysia to design and build the national 5G network at a cost of RM11 billion, far lower than the initial cost of RM15 billion.

Fahmi said the government was scrutinising every aspect of the tender process related to DNB's 5G network rollout.

"The ministry is taking leakages seriously.

"Previously, mobile network operators felt that the DNB contract was a black box and the progress could not be seen.

"We have received a thorough review and there has been progress since the rollout began.

"I leave it to the authorities to decide whether or not to investigate the governance and administration of the project," he said to a question by Syed Ibrahim Syed Noh (Pakatan Harapan-Ledang) on the procedures for awarding 5G network tenders to avoid leakages.

Previously, Prime Minister Datuk Seri Anwar Ibrahim had said the government would rigorously review the rollout of the 5G network in Malaysia.

He said the government would review the policy as the previous administration did not manage it in a transparent manner.

DNB had said it would work with the government and fully cooperate in the review.

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