Previously, we reported that Malaysia is considering the introduction of a second 5G network next year to increase competition and break up monopolies. If the rumour is true, Huawei will definitely try to bid for it, but the United States (US) and European Union (EU) told the government to beware of the giant Chinese company.
Reuters reports that according to the Financial Times (FT), the EU and US have cautioned Malaysia about the potential dangers to its national security and foreign investment as it finalises its review of the 5G rollout. This review could permit Huawei Technologies Co Ltd, a Chinese company, to participate in the country’s telecoms infrastructure.
The letters were sent by EU and US envoys to Malaysia in April after the government chose to review the decision to grant Ericsson a RM11 billion tender to construct a state-owned 5G network.
The 5G rollout in Malaysia has encountered numerous setbacks due to pricing and transparency concerns in the industry, as well as concerns about the possibility of a government-run network resulting in a nationalised monopoly.
Despite the US previous concerns about security, the government had previously dismissed them and considered Huawei to be the frontrunner for the contract.
According to one of the letters written by the US ambassador to Malaysia, Brian McFeeters:
Senior officials in Washington agree with my view that upending the existing model would undermine the competitiveness of new industries, stall 5G growth in Malaysia, and harm Malaysia’s business-friendly image internationally.
Allowing untrusted suppliers in any part of the network also subjects Malaysia’s infrastructure to national security risks.
