5G regulation and law in Malaysia

Digital Nasional Berhad (DNB), a Malaysian special purpose vehicle company currently overseen by the Ministry of Digital, was directed pursuant to the Ministerial Direction No. 3 of 2021 on the Deployment of 5G Infrastructure and Network (2021 Ministerial Direction) to be the single neutral party to deploy the SW 5G network in Malaysia. The targets, timelines and phases for deployment of 5G networks in Malaysia is set out in Phase 2 of the Jalinan Digital Negara (JENDELA) plan.

DNB deploys the SW 5G Network using the Multi-Operator Core Network (MOCN) architecture, which allows a single network infrastructure (in the case of DNB, a Radio Access Network (RAN)) to be shared and connected with two or more core networks.

In May 2023, following a review of the SW 5G network model, the Malaysian Government announced that Malaysia will transition to a DW 5G network model, to reduce the financial burden on the Malaysian Government, as well as to introduce more competition, drive innovation and enhance service quality in the telecommunications industry.

On 1 November 2024, U Mobile Sdn Bhd (U Mobile) was selected to implement Malaysia’s second 5G network under the DW 5G network model.

On 31 December 2024, the 2021 Ministerial Direction which provided for the SW 5G network model was revoked pursuant to the new Ministerial Direction No. 4 of 2024 on the 5G Network Implementation and the Revocation of the 2021 Ministerial Direction (2024 Ministerial Direction). Under the 2024 Ministerial Direction, the Malaysian Communications and Multimedia Commission (MCMC) was directed to undertake further necessary steps in respect of implementation of the DW 5G Network by both DNB and U Mobile.

On 18 February 2025, the Communications Minister stated that a letter of award will be issued to U Mobile in the next one to two weeks. U Mobile also announced on its website that it has begun rolling out 5G service using standalone access (SA) technology to customers in stages.

It was reported that Phase 1 of the JENDELA plan from 2020 to 2022 focused on optimising existing resources and infrastructure for mobile as well as fixed broadband services. Phase 1 then paved the way for Phase 2 in expanding the use of 5G network services nationwide since 2023 with targeted completion in 2025.

As of September 2024, Malaysia’s 5G coverage had reached 81.9% of populated areas.

The overall objective of laws and regulations pertaining to frequencies and spectrums in Malaysia is to ensure their efficient use by various parties with minimal interference as guided by the International Telecommunication Union (ITU), a specialised United Nations agency that is responsible for harmonisation applied to the global use of frequencies and spectrums.

The laws and regulations include the following:

• The Communications and Multimedia Act 1998 (CMA) is the overarching legislation regulating the converging communications and multimedia industry. Among other items, itsets out provisions on spectrum management, assignment and transfer of spectrum, and the instruments that MCMC may issue to govern spectrum management, such as the Spectrum Plan.
• The Communications and Multimedia (Spectrum) Regulations 2000 (Spectrum Regulations) set out the conditions and requirements for obtaining and managing different types of spectrum assignment.
• The National Spectrum Plan (Spectrum Plan) developed by MCMC sets out information on frequency allocation for various wireless services in Malaysia, procedures for assignment and reassignment of spectrum, and general information on spectrum usage in Malaysia, taking into account the international allocation of spectrum by the ITU.
• The Standard Radio System Plan (SRSP) was prepared pursuant to the CMA and Spectrum Plan. The SRSP and sets out minimum technical and regulatory requirements for the efficient use of specified frequency bands.
• Pursuant to the CMA and Spectrum Regulations, MCMC may grant one of the following:
  1. spectrum assignment, which confers rights on a person to monopolise the use of one or more specified frequency bands, but is usually not open for application until an applicant information package is issued by MCMC;
  2. apparatus assignment, which confers rights on a person to use, but not to monopolise, spectrum to operate a network facility of a specified kind at the specified frequency or in any specified frequency band;
  3. a class assignment as issued by MCMC from time to time confers rights on any person to use specific frequencies for a specific list of devices (eg. walkie-talkies) without the need to submit an application to MCMC.

MCMC also issues various notifications and guidelines to provide public information and guidance such matters as  allocation of spectrum, the types of assignment and the procedure to apply for assignment.

SW 5G Network: MCMC had identified 700 MHz, 3.5 GHz, and 26/28 GHz as the pioneer spectrum bands (5G Spectrums) for the deployment of 5G in Malaysia. Due to multiple changes within the Malaysian Government since 2018, there were different proposed methods for the assignment of 5G Spectrums. Following the 2021 Ministerial Direction, the 5G Spectrums were ultimately assigned to DNB by way of apparatus assignments without a public tender.

Transition to a DW 5G Network: MCMC issued an applicant information package to specific companies. In August 2024, it was reported that CelcomDigi, Maxis, Telekom Malaysia and U Mobile submitted  bids to MCMC. Among these companies, U Mobile was selected to implement Malaysia’s second 5G network under the DW 5G network model. Pursuant to the Ministerial Direction No. 1 of 2024 on the Second Carriers of the 700MHz and 3.5 GHz Frequency Bands, (i) two 20 MHz blocks in the 700 MHz band, and (ii) a 100 MHz in the 3.5GHz band, from the 5G Spectrums, will be assigned to U Mobile.

For the second 5G network awarded by way of an applicant information package, MCMC issued a press release stating that the selection of U Mobile was based on a few factors, including the submitted business and technical plan, compliancy rates and customer satisfaction track records, and their contributions towards the universal service provision initiatives, as well as the targets under the JENDELA plan.

Generally, conditions specific to apparatus assignment holders are not made public. In the case of DNB, there is also no public information on the specific conditions of the 5G Spectrums currently assigned to DNB by way of apparatus assignments.

Apart from the conditions specific to DNB as may be stated in the apparatus assignments issued to DNB, the other general conditions provided under the Spectrum Regulations, Spectrum Plan and SRSP will apply to DNB as well.

The general conditions include:

• the assignment holder shall use or operate only certified apparatus in the spectrum specified in the assignment;
• the assignment holder shall submit a commissioning report in a format and containing any information as may be specified by MCMC before a certified apparatus authorised by the assignment may be placed into commercial operation;
• the assignment holder shall comply with all the MCMC directions in relation to use of spectrum;
• the assignment holder shall take all necessary steps to eliminate any minor interference, major interference or harmful interference;
• the assignment holder shall ensure that no apparatus used or operated in that spectrum shall exceed the specified output powers, emission parameters or coverage area approved for the assignment without prior written MCMC approval;
• the assignment holder shall comply with the technical standard, mandatory standard or voluntary code registered by MCMC under the CMA;
• the assignment holder shall comply with the CMA and any subsidiary legislation  under the Act and any other relevant written laws; and
• the assignment holder shall observe the provisions of the International Telecommunication Convention (ie. the  ITU charter and constitution) and the International Convention for the Safety of Life at Sea.

There is no public information on the exact or total price of the 5G Spectrums currently assigned to DNB by way of apparatus assignments.

Generally speaking, the fees are calculated on a per apparatus assignment basis, and each apparatus assignment is subject to fees comprised of the following components:

• an application fee of RM60 (where USD1 = RM4.4, approximately) for each apparatus assignment;
• a fixed fee, which varies depending on the type of apparatus; and
• a variable fee, which is calculated based on the bandwidth and frequencies used.

Issues relating to implementation of the 5G network in Malaysia largely pertain to (i) the change of deployment model, and (ii) delays by local telecommunications companies in completing the projects under the JENDELA plan.

In 2021, major local telecommunications companies raised concerns that the appointment of DNB to implement the SW 5G Network would create a government monopoly, stifling competition and innovation, and leading to inefficiency and higher costs for consumers, as DNB was (then) wholly owned by the Malaysian Ministry of Finance.

The Malaysian Government responded by:

• divesting 70% of DNB shares to a few local telecommunications companies under a shared subscription agreement, while retaining 30% of the shares in DNB; and
• proposing a transition from a SW 5G Network to a DW 5G Network.

Under (the now) DW 5G Network, the selection of U Mobile to implement the second network was also met with criticism.

While there have not been any decisions relating to non-compliance with 5G concession obligations yet, it has been reported that:

• the implementation process for Phase 2 of the JENDELA plan, which aims to expand the use of 5G nationwide, is currently being overhauled due to delays by local telecommunications companies and the location of the selected sites; and
• non-compliance notices were issued in October 2024 to all local telecommunications companies that had yet to complete their assigned JENDELA projects.

Long-term spectrum plan: In April 2022, MCMC issued the Spectrum Plan 2022, which contains information on frequency allocation for various wireless services in Malaysia, international allocation of spectrum as agreed by the ITU for all three ITU regions, procedures for assignment and reassignment of spectrum and general information on spectrum usage in Malaysia.

Future tenders: Since the November 2024 selection of U Mobile to implement the second network of the DW 5G Network, there has not been any announcement for future tenders.

No other 5G-specific rules have been drafted, apart from the 5G network sharing obligations explained below.

DNB has published the Reference Access Offer (RAO) on its website, which sets out the terms and conditions under which DNB will enter into an access agreement with an access seeker for the supply of its network facilities and network services. The RAO was prepared pursuant to the baseline requirements as prescribed under the Commission Determination No. 1 of 2022 on the Mandatory Standard on Access (MSA).

U Mobile’s current RAO on its website is expected to be expanded in accordance with the MSA to include terms and conditions upon which U Mobile will enter into an access agreement with an access seeker for the supply of the second 5G network.

As the 5G Spectrums were assigned to DNB by way of apparatus assignments, any spectrum sharing arrangements would be specified as conditions under the apparatus assignments.

As explained above, DNB’s RAO prepared pursuant to the MSA, as well as U Mobile’s expanded RAO to be prepared pursuant to the MSA, would generally apply in relation to granting competitors access to new 5G networks.

5G Cybersecurity

Pursuant to a collaboration agreement between DNB and Cybersecurity Malaysia (CSM) thatestablishes a National 5G Cybersecurity Testing Centre and provides for the development of new 5G security guidelines, the following comments were made:

• a newly established National 5G Cybersecurity Testing Centre will serve as a platform for industry players to identify vulnerabilities, ensure compliance with standards and validate security features;
• the 5G security guidelines are aimed to serve as a guiding principle for future 5G security baselines.

In 2021, questions were raised regarding DNB’s decision to appoint Ericsson over other bidders including Huawei for the 5G network, even though Huawei was more cost effective.

In 2023, the Malaysian government sought to review its decision to possibly allow Huawei to bid for a role in the 5G network, which resulted in officials from both the EU and US warning Malaysia about the potential national security and foreign investment risks.

The selection of U Mobile to implement the second 5G network in November 2024 could open the door for potential involvement of Chinese companies and technologies, considering reports stating that:

• the Malaysian government is open to adopting technology from any country for roll-out of the second 5G network as long as the technology meets the required technical and security standards; and
• in September 2024, U Mobile entered into separate memorandum of understanding with Huawei and ZTE respectively to explore and develop 5G use cases in Malaysia.

There has not been any public information on plans for 6G in Malaysia yet.