KUALA LUMPUR (Nov 28): Digital Minister Gobind Singh said on Thursday that RM16.5 billion funding previously reported for Digital Nasional Bhd (DNB) to implement the first 5G network was for a 10-year period and involved limited government funds.          

He said the government only made a RM500 million equity injection to initiate operations in 2021, followed by a RM450 million shareholder loan from the Minister of Finance (Incorporated) in May 2023.

Besides that, DNB’s expenditures were financed through private loans, including bank loans guaranteed by the government, Gobind told the Dewan Rakyat during the ministry's winding-up speech for the Supply Bill 2025.

Several lawmakers had previously urged the government to clarify allegations that the previous administration had allocated RM16.5 billion in public funds for DNB to implement the first 5G network.

Gobind said that as of 2024, DNB spent RM5 billion on developing and maintaining the 5G network. Additionally, DNB awarded a total of 41 projects worth RM51.8 million through a tender process in 2024.

He added that since DNB came under supervision of the Digital Ministry in January this year, and that telcos have conducted their respective due diligence on the entity prior to signing the share subscription agreement to take up their respective stakes in it.

"The process has to be done to ensure that the affairs of this DNB are in order, it is a necessity. The due diligence on DNB was done by the telcos involved. And what we got through that process is that everything that happened there is in order and that amounts to an audit to me. Everything that happened until now is in accordance with the law," he told the lower house of Parliament while winding up the debate on his ministry's 2025 budget.

"I have a letter from the Malaysian Anti-Corruption Commission (on this) and I can provide it after this," he said in response to a question from Howard Lee (DAP-Ipoh Timor) who asked if MACC was involved in the due diligence. 

The minister also stressed that the second 5G network will not be permitted to roll out until the MNOs in DNB repay the government funding provided for the company for its operations.

Gobind said  the government funding and guarantees will be taken over and repaid by the MNOs as part of the transition process to the dual 5G network model.

"The second 5G network cannot roll out until the government’s funding is fully returned. This clearly shows that the government will not bear any losses," Gobind said.

Currently, four MNOs — CelcomDigi Bhd (KL:CDB), Maxis Bhd (KL:MAXIS), U Mobile Sdn Bhd, and YTL Power International Bhd’s (KL:YTLPOWR) YTL Communications Sdn Bhd — each hold a 16.3% stake in DNB.

Meanwhile, the government, through the Minister of Finance (Incorporated), retains a 34.9% equity and special shares in DNB.

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