Malaysia’s Strong Digital Infrastructure Attracts investments - Fahmi 

By M.Saraswathi

KUALA LUMPUR, Dec 23 (Bernama) -- Malaysia’s strong digital infrastructure as well as political and policy stability are driving technology and digital investments into the country, Communications Minister Datuk Fahmi Fadzil said.

He said the success of the National Digital Network (JENDELA) infrastructure initiative has laid a strong backbone for further growth, making Malaysia an attractive destination for data centres and other digital investments.

“With JENDELA Phase 1 and Phase 2, the national fiberisation programme has yielded tremendous results. The cost has been significant, but we see it as an investment for the people,” he told the Malaysian National News Agency (Bernama) in an exclusive interview recently.

The interview was with Bernama editor-in-chief Arul Rajoo Duraj Raj, acting deputy editor-in-chief of news services Mohd Shukri Ishak, and executive editor of economic news services M. Saraswathi.

Launched under the 12th Malaysia Plan (2021–2025), the JENDELA initiative was designed to strengthen Malaysia’s digital infrastructure and prepare the country for the transition to 5G technology.

The  RM21 billion initiative, co-funded by the Malaysian Communications and Multimedia Commission’s (MCMC) Universal Service Provision (USP) Fund and industry players, JENDELA is set to deliver nationwide broadband access, enhance 4G network quality, and progressively phase out 3G services.

This has well positioned Malaysia to be an attractive destination for investments, he said, adding that several international firms, including those in cybersecurity, have established regional operations here.

They include Canada’s BlackBerry, which has expanded its Asia-Pacific headquarters in Malaysia, as well as Italian defence and aerospace company Leonardo, which has opened a regional cyber centre here.

“Investors look not only at infrastructure and costs, but also at political and policy stability. Certainty in government policy is critical,” he said, adding that Malaysia’s neutral geopolitical stance and calm administration under the MADANI Government have boosted investor confidence.

Fahmi said he is confident that Malaysia will continue to attract significant digital and technology investments with its stable environment, strategic location and resilient digital infrastructure. 

Transformation of Telecommunication Companies

Telecommunication companies are evolving beyond basic connectivity to deliver innovative, value-added services, said Fahmi when asked on the changing landscape of the industry.

He cited the transformation of Telekom Malaysia (TM) from a traditional telecommunications provider into a technology-driven company, reflecting the broader future of the sector where fiber-based infrastructure forms the foundation while services and solutions become the main differentiators.

“TM is unique because a lot of secure government communications is handled by TM. But they also have a lot of new technologies and solutions that are applicable to the industry,” he said.

Telecommunication companies can no longer rely on basic telephony and data services, he said, adding that the future lies in how they understand customer segments and develop services that fit lifestyles and industry needs.

He said Malaysia’s 5G rollout has progressed rapidly following the transition from a single wholesale network to a dual-network model, providing consumers with more options while encouraging healthy competition.

As of now, the first 5G network has achieved over 82.4 per cent coverage of populated areas, while the second network by UMobile has reached about 57 per cent within just a few months.

“This was achieved in just a matter of three, four months. So that's quite fast. I see in 2026, there will be a lot more cooperation and collaboration,” he said.

Fahmi said with most infrastructure being shared, competition in the coming years will be driven less by coverage and more by innovation and service offerings that fully leverage 5G capabilities.

“(On) the estimated number of 5G users now in Malaysia, out of 45 million accounts, maybe about 60 per cent are 5G users. This is fantastic, given that some countries like South Korea took four or five years to reach about 60 per cent. It took us about one year,” he said.

He said Malaysia’s swift adoption of 5G has also positioned the country ahead of many peers.

“Malaysia has some of the fastest internet speeds in the region and among the cheapest in the world. This explains why we are one of the most digitally connected societies.

“Some applications, like WhatsApp, have penetration of over 94 per cent. One of the highest in the region, if not the world,” said Fahmi.

-- BERNAMA