No shareholding conditions breached in U Mobile selection, says minister

No shareholding conditions breached in U Mobile selection, says minister

KUALA LUMPUR: The selection of U Mobile Sdn Bhd, whose major shareholder is a Singaporean firm, to develop the second 5G network does not breach any stipulated conditions, says communications minister Fahmi Fadzil.

Fahmi said the Malaysian Communications and Multimedia Commission had reviewed the matter during the selection process and ensured that the shareholding conditions, specifically the foreign equity cap of 49%, were met.

“From the perspective of both foreign and local shareholding, this decision (to select U Mobile) does not violate any of the conditions in place,” he told the Dewan Rakyat today.

He said the MCMC had independently selected U Mobile and “neither the minister nor the deputy was involved” in the process.

He was responding to Hassan Karim (PH-Pasir Gudang), who asked whether U Mobile’s selection as the second network provider was influenced by “any particular individuals within the company”, without naming anyone in particular.

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Earlier, Fahmi said the general requirements for foreign equity holding in individual licences for network facility providers and network service providers were capped at 49%, with Bumiputera ownership mandated at a minimum of 30%.

“Currently, U Mobile’s foreign equity holding remains within the limits set by the licence’s special conditions granted to the firm,” he said.

He also said the decision to select U Mobile as the second 5G network provider did not violate the special licence conditions set for the firm.

Hassan had asked whether U Mobile’s selection as the second 5G network provider had violated its licence conditions since the majority shareholder is Singaporean firm Straits Mobile Investments Pte Ltd.

No conflict of interest

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Wan Saiful Wan Jan (PN-Tasek Gelugor) also asked whether there was any conflict of interest since U Mobile holds a stake in Digital Nasional Bhd (DNB), which rolled out and manages the nation’s first 5G network.

Fahmi said the MCMC had considered all the factors involved, including the firm’s management, shareholding, and corporate governance, and found no violations in these areas.

“U Mobile has also communicated with DNB to ensure that users will not experience issues in accessing 5G services.

“If both networks pursue the shared goal of building sustainable and competitive networks, both the public and businesses will benefit,” he said.