DNB’s response to Channel News Asia article on Malaysia’s 5G roll-out

• DNB denies allegations, rejects insinuations of impropriety in its procurement practices
• Tender process engaged independent global professional services firms and 50 experts

Digital Nasional Berhad (DNB) has released a statement addressing several misleading claims made by Channel News Asia in an article titled “Malaysia’s billion-dollar 5G roll-out stumbles as deal breaks down between powerful telcos, state-owned operator,” published on April 19, 2024, and subsequently reported by other media outlets.

The article alleged that DNB lacked transparency in its internal operations, particularly concerning the awarding of contracts to third-party vendors, specifically for Ericsson’s 5G network equipment, software procurement, and a potentially lucrative cloud services platform.

In response, DNB strongly denies these allegations and rejects any insinuation of impropriety in its governance and procurement practices. The company emphasises that its tender and procurement processes adhere to the strictest governance standards and best practices.

DNB asserts that it has consistently maintained openness and transparency in its awarding of tenders and contracts, addressing these matters in detail in Parliament and the media, repeatedly refuting the allegations.

According to DNB, the awarding of the 5G network equipment contract involved a rigorous evaluation process, with Ericsson achieving the highest score across all prerequisites. The tender process was structured by an independent global professional services firm, involving approximately 50 local and international experts from ten countries with 5G network rollout experience. The process underwent multiple reviews, including by the Malaysian Cabinet in 2022 and 2023.

Regarding the Share Subscription Agreements signed with the five Mobile Network Operators, the process is ongoing, and DNB strongly denies any contrary claims but cannot provide specific comments due to confidentiality restrictions. As a public utility serving the public interest, DNB emphasizes the importance of verifying published reports based on accurate information.

DNB reiterates its commitment to delivering one of the best-performing and most reliable 5G networks globally, expediting its rollout within budget, and fostering increased 5G adoption across industries, enterprises, and the public to accelerate Malaysia’s digital transformation.