DNB'S RM16.5 BLN DEVELOPMENT COST DOES NOT INVOLVE GOVT FUNDING - GOBIND

KUALA LUMPUR, Nov 28 (Bernama) -- The Ministry of Digital today clarified that the RM16.5 billion cost for Digital Nasional Bhd (DNB) to develop and maintain the first 5G network for 10 years does not involve government funding. 

Digital Minister Gobind Singh Deo said that DNB, instead, received an equity injection of RM500 million in 2021 as well as a shareholder loan of RM450 million by the Minister of Finance (Incorporated) (MoF Inc) in May 2023. 

“Apart from that, DNB's expenditure is funded through private loans, including bank loans guaranteed by the government and other financial sources,” he said. 

Gobind said this during the winding up session of debate on the Supply (Budget) Bill 2025 at the committee level for the ministry at the Dewan Rakyat today.

“The amount of RM950 million, which is RM500 million equity injection and RM450 million shareholder loan, as well as government-guaranteed bank loans, will be taken over and repaid by the telecommunication companies (telco) to the government as part of the transition process to the country’s dual 5G network model,” he said.

Earlier, a total of 10 members of Parliament from the government and opposition blocs participated in the debate session on the bill.

As of 2024, DNB has spent RM5 billion to develop and maintain its 5G network.

Gobind said that the government would not bear any losses.

He also stated that his ministry has called up relevant parties within DNB to provide a full explanation regarding the matter.

He has also ordered that an audit or “due diligence” study be conducted to ensure that aspects of administration or governance and so on are carefully monitored at DNB.

"As a result of the due diligence, we observe that the administrative, financial and other aspects are in order.

“I would like to firmly state that if there are matters brought up to our attention requiring further actions, we will take necessary actions,” he said. 

-- BERNAMA