The board members of Digital Nasional Berhad (DNB) including the five new members will meet next Tuesday (May 7) to review the due diligence findings, and work towards the fulfilment of the remaining conditions precedent, and complete the details of the share subscription agreement (SSA).
Digital Minister Gobind Singh Deo said they will have 20 days to come up with their recommendations.
“What we need to do is go through the process. After they (new board members) get into the board they will study this process of due diligence that was done, study the reports that were made and it will be for them to decide the direction that things will take after this,” Gobind told reporters after witnessing the memorandum of understanding (MoU) exchange between DNB and Ericsson with Intel, SKF, Scania and eMooVit today.
“There are time frames set for that, I believe 20 business days, for them to come back after looking at the due diligence reports so we will take it one step at a time,” he said.
The SSAs were entered into by parties to put into effect the government’s policy as announced on May 2, 2023, on the transition from a single wholesale network (SWN) 5G model to a dual network (DN) 5G model.
There are two main phases to the transition. First, the DNB 5G network reaches 80 per cent coverage of populated areas (CoPA) and the participation of the mobile network operators in DNB.
Second, the shift to DN and the divestment of the government through Ministry of Finance Inc (MoF Inc) equity in DNB where some of the mobile network operators will remain with DNB while the rest will move to the second 5G network and divest their equity in DNB.
Once the SSAs are completed, the telcos will take 70 per cent equity in DNB (14 per cent per telco) while the MoF Inc will retain 30 per cent equity and a special share which will accord the Ministry of Finance certain special rights for a stipulated period.
The five new board members are Datuk Kamal Khalid (CelcomDigi), Uthaya Kumar Vivekananda (Maxis), Chang Yit Fei (U Mobile), Nik Azli Abu Zahar (Telekom Malaysia) and Datuk Seri Yeoh Seok Hong (YTL Power International).
The five new members will join other incumbent board members Secretary General of Treasury, Ministry of Finance, Datuk Johan Mahmood Merican and Deputy Secretary General of Digital Ministry, Ma Sivanesan Marimuthu.
DNB remains the sole 5G network in Malaysia and it is the only entity assigned the 700MHz and 3.5GHz spectrum for 5G rollout. All major telcos including CelcomDigi, Maxis, U Mobile, TM and YTL are currently providing 5G services through their respective access agreement with DNB.
Malaysia right fit for world’s tech leaders
Seperately, Microsoft’s US$2.2 billion (RM10.5 billion) investment to develop artificial intelligence and cloud computing here underscores Malaysia’s attractiveness to mega investors, said Gobind.
He said the global tech giant’s announcement yesterday, coupled with Intel’s RM70 billion over a decade commitment, was an endorsement of Malaysia’s infrastructure and ability to accommodate advanced companies locally.
“Yesterday’s announcement from Microsoft demonstrates their confidence in Malaysia as an investment hub for large companies. This is a good sign, shows the global attention is on us where we’re seen as a country that can manage large investments.
“When a large investment like this comes in it requires huge energy and infrastructure and we have that in Malaysia and ultimately this is why people choose us as a destination.
“Moving ahead if we look at where we are, location wise, it’s something people look at positively. We’re in Asean which strengthens our position. Apart from Microsoft there are other companies that have expressed interest but moving ahead we hope to see more investments coming in soon,” he told reporters after witnessing the memorandum of understanding (MoU) exchange between Digital Nasional Berhad (DNB) and telecommunications firm Ericsson with local companies.
Microsoft pledged to invest in artificial intelligence and cloud computing to help develop Malaysia’s AI infrastructure. The tech giant’s chief executive Satya Nadella said the cash would help to build AI and cloud infrastructure in Malaysia, creating an AI centre of excellence and giving AI training to as many as 200,000 Malaysians.
Prime Minister Datuk Seri Anwar Ibrahim said the investment will greatly support the government’s focus on developing AI capacity in the country.
