Malaysian Telcos Inject Additional Funding into Digital Nasional Bhd Amid 5G Competition
Malaysian Telcos Bolster Digital Nasional Bhd with Additional Funding
Digital Nasional Bhd (DNB), Malaysia’s sole wholesale 5G network provider, has received an additional MYR350 million (approximately US$82.8 million) from three major telecom operators: CelcomDigi, Maxis, and YTL Power International. The operators injected MYR116.67 million each into the network as part of a financial move to strengthen DNB’s operations amidst the upcoming competition from U Mobile’s second 5G network, expected to roll out soon. This injection is on top of the MYR233.33 million each operator previously contributed through their share subscription agreements (SSAs) finalized in June 2024. Altogether, these new contributions bring the total investment in DNB to over MYR1 billion, highlighting the significant financial commitment to Malaysia’s expanding 5G landscape.
A Financial Lifeline for 5G Expansion
The additional funding is intended to address DNB’s immediate working capital requirements and sustain its progress with 5G operations. According to filings by CelcomDigi, this funding will ensure DNB’s financial stability and support its operational objectives in the face of growing market demand for high-speed connectivity. However, CelcomDigi also warned of potential risks, indicating that the deployment of U Mobile’s second 5G network could create revenue pressures for DNB as existing access seekers may migrate to the new network. As the demand for seamless digital connectivity intensifies, DNB’s shareholders acknowledge that additional investments may still be needed in the future to keep pace with the competitive landscape.
Strategic Oversight and Ownership Structure
To ensure judicious management of its funds, DNB has established a dedicated steering committee that will report regularly to shareholders. Currently, CelcomDigi, Maxis, and YTL Power each hold a 19.44% stake in DNB, while the Malaysian Ministry of Finance (MOF) retains a majority interest with 41.67%. This collaborative structure underlines the strategic importance of DNB in the national 5G rollout and positions the MOF as a central player in ensuring its operational and financial viability. Notably, U Mobile previously held a 16.28% stake in DNB but exited the consortium in 2025 after selling its shares to the remaining stakeholders for a nominal MYR100,000. This exit paved the way for U Mobile to independently pursue its vision of a second 5G network in Malaysia.
Implications for the Future of Malaysia’s 5G Market
The introduction of a competing 5G network by U Mobile is expected to intensify competition in Malaysia’s telecommunications sector, potentially altering market dynamics. While the move could spur innovation and extend 5G availability to underserved areas, it may also create financial challenges for DNB if multiple operators shift their focus to U Mobile’s infrastructure. Furthermore, the MOF has outlined plans to divest its shares in DNB to the three telecom stakeholders within a month after November 12, 2025, unless all parties agree on a different timeline. This forthcoming divestment will likely influence the long-term structure and strategy of DNB as it navigates Malaysia’s rapidly evolving 5G ecosystem.
As Malaysia progresses toward greater 5G adoption, the interplay between DNB and U Mobile will play a pivotal role in determining the future of connectivity within the country. Industry observers will be monitoring closely how these developments impact consumers, businesses, and the broader technological landscape.
