KUALA LUMPUR (Oct 19): Digital Nasional Bhd, which deploys Malaysia’s 5G network infrastructure, no longer requires any support from the government, Communications Minister Datuk Seri Fahmi Fadzil said.
The government's financial obligations tied to the company also known as DNB had been reduced to nil as of end-September, he told reporters on Monday, following the completion of a RM5.2 billion syndicated Islamic term financing facility involving five financial institutions.
"I am happy to say that as at the end of September, the government no longer has any liability” in DNB, he said and ruled out further state support going forward.
WATCH: Digital Nasional no longer needs state support
Fahmi was speaking following a document exchange ceremony between DNB and the lenders involved in providing the refinancing facility.
The financing refinanced DNB's government-guaranteed revolving credit facility, which expired on the same date, and provides longer-term funding for the company's operations and network development.
The refinancing comes as DNB prepares to transition from a government-backed ownership structure to equal ownership among its three mobile network operator shareholders — CelcomDigi Bhd (KL:CDB), Maxis Bhd (KL:MAXIS) and YTL Power International Bhd (KL:YTLPOWR).
The financing, together with the company's recent spectrum assignments and ongoing shareholder transition, would support DNB’s operations under Malaysia's dual 5G network framework, chief executive officer Datuk Azman Ismail said in his speech at the same event.
Azman said that the company's ability to service its financing obligations would be supported by revenue from its existing access agreements with telecommunications operators, as growing 5G usage generates higher income.
He said that while consumer adoption of 5G had progressed, DNB would increasingly focus on expanding its reach among businesses and industries, where greater use of the technology could improve operational efficiency and open up new market opportunities.
The Malaysian government is exiting as an ordinary shareholder of DNB but will retain a special share to safeguard national interests and oversee strategic matters.
During Fahmi's speech at the ceremony, he urged DNB to double its efforts in promoting the benefits of its 5G infrastructure to multinational corporations, particularly in providing secure and reliable connectivity solutions amid ongoing geopolitical uncertainties.
Set up in March 2021, DNB was initially tasked with developing Malaysia's sole wholesale 5G network before the government decided in May 2023 to adopt a dual network model following opposition from mobile network operators.