Consortium plans 5G investment

KUALA LUMPUR: Six listed firms, led by SMTrack Bhd, have formed a consortium to invest in 5G venture with the help of 5G Infra Tech Solution Sdn Bhd (5GInfraTech).

The six companies yesterday entered into a head of agreement (HOA) with 5GInfraTech to undertake a series of corporate exercises to raise funds and finance 5G as well as fiber optics related projects.

Besides SMTrack, the other consortium partners are Country Heights Holdings Bhd, Jiankun International Bhd, Sersol Bhd, Techna-X Bhd and MQ Technology Bhd.

SMTrack deputy executive chairman Azmi Osman said the consortium expected many joint ventures funding the installation of 5G telecommunication towers nationwide.

"This is an initial agreement. We have not yet decided on the amount (funds) that will be generated. That will be announced later in the next few weeks," Azmi said at the signing ceremony on Monday.

He said 5GInfraTech would undertake its maiden 5G projects in collaboration with Ennova Sdn Bhd, one of the contractors for the national 5G projects overseen by Digital Nasional Bhd. 

"The investment in 5G telecommunication companies such as Ennova will definitely improve the consortium's revenue stream and bottom line," he said.

Ennova, which is mainly involved in the construction and engineering of telecommunication infrastructure including 5G roll out, has formalised the paperwork with the consortium via 5GInfraTech, which was set up in 2014.

5GInfraTech executive chairman Datuk Saiful Nizam Mohd Yusoff said Ennova was the first to sign a memorandum of agreement (MoA) with 5GInfraTech to finance the rollout of the 5G network.

"Currently, Ennova plans to install and maintain 350 telecommunication towers all over Kuala Lumpur. With the huge financing from 5GInfraTech, Ennova can easily roll out 10,000 towers all over Malaysia," he added.

Saiful Nizam said the company planned to expand its business in line with the implementation of 5G in the country.

The fund generated by the consortium would support 5GInfraTechs's plan to roll out 5G infrastructure in Malaysia, he added.

"As far as we are concerned the project is evolving, thus we plan to grow as much as possible but, the lack of funding problem has held back our plan. Now, basically the funds are ready and this is the time for us to roll out our plan and continue our expansion," he said. 

Jiankun executive director Datuk Seri Tan Choon Hwa said based on the Malaysian Institute of Economic Research data, 5G-related economic activities were estimated to contribute an additional RM12.7 billion to the GDP between 2021 and 2025. 

"In 2025 alone, the contribution of 5G to the Malaysian GDP is expected to reach RM5.3 billion in subsequent years. The share of 5G, and 5G-enabled Industry 4.0 activities in the Malaysian GDP is projected to continuously rise," Tan added.

Sersol managing director Datuk Wira Justin Lim Hwa believes that investing in the telecommunication industry in the digital age was a strategic investment with profitable return. 

"We are optimistic that these 6 listed companies which consist of two IT companies, two property developer companies and two investment holdings will post a strong combination and synergy strive to realise this program and make it a profitable and successful venture," Lim said.

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