Malaysia’s Telcos Inject MYR350 Million to Strengthen 5G Network Amid Competitive Pressures
Telcos Commit Over MYR1 Billion to Stabilize 5G Operations
Malaysia’s leading telecommunications firms—CelcomDigi, Maxis, and YTL Power International—have collectively injected an additional MYR350 million (US$82.8 million) into Digital Nasional Bhd (DNB), the country’s sole 5G wholesale network. This significant investment aims to bolster DNB’s financial and operational stability as the organization confronts intensified competition with the impending rollout of Malaysia’s second 5G network, spearheaded by U Mobile.
According to stock market filings submitted by CelcomDigi and Maxis to Bursa Malaysia, each of the three operators has contributed MYR116.67 million as part of their ongoing share subscription agreements (SSAs). This latest investment follows their initial commitments of MYR233.33 million, finalized in June 2024, and pushes their collective investments in DNB to over MYR1 billion. The financial backing underscores the industry’s efforts to ensure a seamless and sustainable development of Malaysia’s 5G landscape.
Strategic Funding to Support 5G Infrastructure
The fresh funds injected by these telecom giants will be utilized primarily for meeting operational expenses and maintaining DNB’s working capital, which plays a vital role in facilitating the nationwide 5G rollout. However, CelcomDigi has flagged potential challenges, cautioning that the upcoming competition posed by U Mobile’s second 5G network might place downward pressure on DNB’s revenue as some access seekers may pivot to alternative solutions.
Despite these concerns, the recent filings reveal proactive measures being taken to enhance transparent financial governance. DNB has established a steering committee tasked with regularly reporting to shareholders regarding the judicious use and allocation of funds. This initiative is expected to reassure investors while reinforcing accountability in managing Malaysia’s 5G ecosystem.
Government Stake and Industry Transitions
Currently, CelcomDigi, Maxis, and YTL Power each own a 19.44% stake in DNB, with the Malaysian government, represented by the Minister of Finance Inc. (MOF), retaining a dominant 41.67% share. Interestingly, U Mobile, once a stakeholder in DNB, exited in May 2025, opting instead to pursue the rights to deploy its independent 5G network, granted in November 2024. The MOF has already committed to selling its shares in DNB to the remaining telco stakeholders by November 2025, further reshaping the ownership landscape of Malaysia’s telecommunications sector.
As the nation ramps up its focus on 5G adoption and infrastructure, the added funding provides a much-needed lifeline to DNB, ensuring sustained momentum in deployment efforts. However, with U Mobile’s parallel 5G network expected to launch soon, industry competition is set to intensify, potentially challenging the dominance of DNB and reshaping consumer offerings in the process.
