Guan Eng asks Tengku Zafrul to explain 61pc Bumiputera quota for large contracts, says should have consulted stakeholders first to see viability

KUALA LUMPUR, March 19 ― After announcing that the Malaysian government via its Digital Nasional Bhd (DNB) will maintain the single wholesale network (SWN) model in the country’s planned rollout of the 5G spectrum, DAP secretary-general Lim Guan Eng has asked Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz to clarify the new 61 per cent Bumiputera quota for large contracts.

Lim questioned this after Zafrul said that Ericsson had drawn up an implementation plan by optimising contract work and services for local vendors, with an estimated 61 per cent prioritised for Bumiputera interest.

“The government should clarify this increase to 61 per cent of Bumiputera interest, whether this is now the new benchmark for major government procurement contracts.

“For the East Coast Rail Link (ECRL) the previous BN (Barisan Nasional) government had set Bumiputera interest and participation of local vendors at 40 per cent,” he said in a statement this afternoon. 

Lim said that as Bumiputera companies can bid for the non-Bumiputera portion through open tender, to unilaterally expand to 61 per cent is a major policy change that should be done with full consultation with all stakeholders as it deals with issues of justice or fairplay and encourages competitiveness.

“And now there is a new benchmark of 61 per cent. Can the government or MCA President, MIC and GPS Ministers clarify when this was approved in Cabinet?” he questioned.

On March 16, Putrajaya officially announced that Malaysia will proceed with its 5G rollout via its Single Wholesale Network (SWN) model operated by DNB.

Following a Cabinet meeting, Tengku Zafrul also said the government has agreed to offer 70 per cent of equity holding within DNB to telecommunications companies whereas the remaining 30 per cent will be held by the Malaysian government.

This meant that the DNB will not be fully-owned by the Malaysian government as previously announced, which critics have raised concerns the approach would create a monopoly, raise prices at the expense of efficient services.