Kuala Lumpur – The Malaysian government has set a goal of delivering 5G connectivity to 80 % of the nation’s population by 2024. To achieve this, Digital Nasional Bhd (DNB) awarded a RM11 billion contract to Sweden’s Ericsson on 29 June, tasking the firm with building the country’s entire fifth‑generation mobile network from the ground up.
Erik Hagbro, chairman of Ericsson Malaysia, Sri Lanka and Bangladesh, said the project will cover the design and deployment of the core network, radio‑access and transport layers, as well as the business‑operations support software. DNB – a special‑purpose vehicle created by the government – will own the infrastructure, while mobile operators will purchase wholesale access rather than erect their own towers.
The initial service launch will take place this year in the capital region – Kuala Lumpur, Putrajaya and Cyberjaya – which will act as a test bed for the broader rollout. Success in these three cities will be critical; any delay or under‑performance could jeopardise the national timetable for reaching the 80 % coverage target.
One of the most talked‑about aspects of the deal is the exclusion of China’s Huawei. In February, Malaysia barred Huawei from bidding on any government‑linked 5G contracts, citing security concerns tied to the firm’s relationship with Beijing. Although a joint cybersecurity laboratory with Huawei was announced that same month, the ban remained in force, clearing the way for Ericsson to win the contract without facing the political and security hurdles that have affected Huawei in other markets.
Beyond the technical ambition, the agreement carries a sizeable economic promise. Ericsson’s proposal includes the creation of up to 100 000 jobs, a figure that the Malaysian authorities have highlighted as a concrete benchmark for measuring the project’s impact. The employment promise is tied to the construction, operation and maintenance of the network, as well as to downstream activities that could arise from a fully realised 5G ecosystem.
Analysts note that achieving 80 % population coverage within three years will be a logistical challenge. While the west coast of Peninsular Malaysia is densely populated, the interior regions and East Malaysia are sparsely settled and feature difficult terrain. Extending the network to these remote areas on the planned schedule will test both supply‑chain capabilities and project management.
The wholesale‑only model adopted by DNB is intended to avoid duplication of infrastructure, but it also concentrates financial risk. Mobile operators must agree to the wholesale pricing set by DNB; if they deem the rates too high or if consumer uptake of 5G services lags, the return on the RM11 billion investment could be delayed.
From a diplomatic perspective, the decision to sideline Huawei sends a clear signal to China, Malaysia’s largest trading partner. While the government has not elaborated on any broader implications, observers suggest that the move may require careful handling in other areas of bilateral cooperation.
Erik Hagbro expressed confidence that Ericsson’s expertise will deliver the promised speed, ultra‑low latency and higher bandwidth that 5G can provide. He added that the network is expected to enable Malaysian entrepreneurs to develop new applications, benefitting consumers and supporting local businesses as the country transitions toward a digital economy.
The next steps involve immediate work in the three pilot cities, with the broader rollout to follow. Success will be measured against two hard targets: the creation of the pledged 100 000 jobs and the achievement of 80 % population coverage by 2024. Meeting these milestones will bolster the case for the single‑wholesale model and for Ericsson’s selection, while any shortfall could provide critics with concrete data to challenge the strategy.
