PETALING JAYA, Oct 2 — Malaysia needs clear safeguards to keep two 5G technology options distinct through changes in network ownership and suppliers, says an analyst.

The Asia Group associate vice-president Asrul Hadi Abdullah Sani said the government should clarify how Digital Nasional Bhd’s (DNB) long-term direction would preserve that diversity alongside the development of the second network.

“Malaysia’s strategic flexibility depends not only on having two 5G networks, but on ensuring that the two networks do not converge around the same technology dependencies,” he said.

Asrul said the second network should add competition and capacity, while Malaysia’s 5G decisions should also consider cybersecurity, supply-chain resilience and compatibility with other systems.

“Public assurances are helpful, but they are not enough on their own,” he said.

“They should be backed by clear governance, transparent procurement rules and safeguards that ensure DNB and the second 5G network remain technologically distinct, commercially viable and accessible through any ownership, operating or supplier changes.”

His comments follow a Frost & Sullivan analysis which said Malaysia’s dual-network model could strengthen its investment appeal by allowing businesses to choose technology suited to their security, procurement and regulatory requirements.

The research firm said access to both Western and Eastern technology ecosystems could extend Malaysia’s ability to work with different international partners, but businesses needed long-term clarity about the available choices and how the networks would coexist.

During his September 22–24 working visit to China, Prime Minister Anwar Ibrahim said Malaysia would remain open to Chinese digital investment and partnerships, highlighting its position as a base for reaching markets across Asia and beyond.

Anwar had previously linked the dual-network approach to benefiting from both Western and Eastern technology in 2023, explaining the government’s decision to introduce a second network.

DNB appointed Sweden’s Ericsson to build its network, while U Mobile selected China’s Huawei and ZTE as technology partners for the second network.

Asrul said investors in artificial intelligence, data centres and cloud services needed confidence that they could choose the network arrangements and supplier ecosystems that met their operational and compliance requirements.

Meanwhile, analyst Samirul Ariff Othman said having two networks created options, but credible governance was needed to turn those choices into strategic autonomy.

He cautioned that the existing supplier arrangements should not be mistaken for a permanent 

government guarantee of two exclusive technology blocs.

Samirul called for clear rules on supplier changes, independent assessments, customer notification and transition arrangements.

“Businesses can price technological risk. They find it much harder to price a promise whose meaning may change,” he said.