U Mobile, Malaysia’s third-largest mobile data provider, has secured a government contract to lead the rollout of the country’s second 5G network. The company has partnered with China’s Huawei and ZTE, assigning Huawei to oversee deployment in Peninsular Malaysia and ZTE in East Malaysia. This follows the government’s 2023 decision to end Digital Nasional Berhad’s (DNB) monopoly and adopt a dual-network model to increase competition and diversify vendor participation.
Previously, DNB, a state-owned special purpose vehicle, managed all 5G infrastructure in partnership with Ericsson. After DNB reached 80% population coverage in December 2023, the government revoked its exclusive mandate, paving the way for U Mobile’s new role. The selection of Huawei and ZTE, however, has reignited security concerns, especially after several Western countries issued warnings in May 2023 urging Southeast Asian governments to avoid Huawei due to security risks and data breaches. Malaysia, emphasizing the need for balance, has defended its decision by highlighting Huawei’s track record and cost-effectiveness, aiming to blend Eastern and Western technologies in its infrastructure.
For U.S. firms, this shift presents challenges in direct 5G infrastructure access but opens up opportunities in cybersecurity, secure software, and 5G-enabling technologies. As Huawei and ZTE expand their commercial presence in Malaysia, American companies can differentiate themselves by offering secure-by-design systems, regulatory compliance tools, and high-assurance services. Malaysia’s commitment to maintaining quality and diverse partnerships still allows room for U.S. firms that can deliver innovative, trusted solutions to support secure and resilient digital ecosystems.
