[COLUMNIST] Anwar's 5G Gamble: Malaysia's Technological Crossroads

The story unfolds with Anwar's meeting with Chinese investors, including Huawei, in Nanning, China on the 18th of September 2023. This was more than a routine diplomatic gesture; it was a strategic move towards nurturing a technological partnership.

The meeting signalled Anwar's willingness to recognize China's burgeoning influence in global technology while turning a blind eye on China’s aggressive behaviour in Malaysia’s own waters with their incessant intrusion in Sarawak waters and the 9 dash line claims that includes our own maritime zone.

The heart of the controversy centres around Anwar’s preferential treatment towards Huawei. This issue gained international attention following reports from Reuters and TIME, which scrutinized his recent policy decisions.

The intensified scrutiny was compounded by a flurry of 28 critical articles published since September 27th where Reuters reported Anwar’s position that the decision to create a dual 5G network is to allow the participation of Huawei.

These pieces, diverse in their viewpoints, share a common thread of scepticism about Anwar's choices, raising alarms over national security and economic transparency. The allegations suggest that Anwar's bias towards Huawei could skew Malaysia's technological landscape, potentially compromising the nation's digital sovereignty.

The Malaysia ICT Summit 2023 on the 28th of September was a crucial platform that confirmed Anwar’s preferential treatment of Huawei where Anwar was reported saying once again that the dual 5G network move was to allow for Huawei’s participation in the 5G infrastructure of the nation.

His proposition to integrate Huawei into Malaysia's 5G network infrastructure was a significant pivot from the existing state-centric model and a clear departure from impartiality usually warranted in a Prime Minister.

This move, however, was met with mixed reactions, raising questions about the transparency and impartiality of the decision-making process.

Anwar’s approach to the 5G network is drawing parallels with the problematic High-Speed Rail (HSR) project managed by the first Pakatan Harapan government.

Observers are concerned that Anwar’s alleged personal biases are influencing critical infrastructure decisions, echoing the HSR saga where isolated decision-making did not fully align with Malaysia's broader interests.

This parallel raise the spectre of history repeating itself, where crucial technological initiatives are hampered by misaligned leadership and lack of broad-based consensus. On October 9th, 2023, Datuk Seri Johari Ghani, representing Titiwangsa, voiced his concerns over the necessity of a second 5G network provider.

His scepticism is rooted in the financial and operational challenges currently faced by Digital Nasional Berhad (DNB), coupled with a surprisingly low national 5G penetration rate of just 7.4%. Johari’s comments reflect a broader sentiment that questions the strategic and financial prudence of expanding Malaysia's 5G infrastructure under the current circumstances.

On the same date, following the flurry of articles condemning the Government decision to award the second 5G operating contract to Huawei without undue process, the Minister of Digital and Communication in a news report was forced to make a U-turn by saying that no direct award of the 5G network was given to Huawei.

This comment was made as he responded to the critique by former Deputy Minister, Ong Kian Ming saying that the Government decisions and preferential treatment regarding Huawei was not done with due process and lacks transparency, echoing the calls of previous critics that alluded to the fact that Anwar’s government have given up on the principle of transparency in governance.

Addressing the brewing controversy, Deputy Communications and Digital Minister Teo Nie Ching asserted that any potential second 5G network provider would be subject to the same stringent governance requirements as the current provider.

This statement, made on November 6th, was a feeble attempt to reassure the public and stakeholders that the government is committed to fairness and transparency in its approach to expanding the 5G network.

This comment was made in response to the growing concerns about Huawei’s involvement as raised by the Member of Parliament of Masjid Tanah, in the Parliament Special Session on the same date.

The comment by the Deputy Minister and the Minister earlier in October shows the disorganization within Anwar’s government and how his preference of including Huawei as a 5G network operator is not a view shared widely within the Cabinet.

Adding a further layer of complexity, Ong Kian Ming's recent critique on the 1st of December underscores the potential risks of a private duopoly in the 5G network, which could prioritize shareholder returns over the public good.

His concerns about the potential exploitation of DNB’s resources and the necessity of government oversight in key appointments highlight the risks of mismanagement in the 5G rollout.

Ong’s call for strict controls over DNB’s 5G assets and the need for due diligence on any second network's financing and rollout plans emphasize the importance of safeguarding public and government interests in this critical national project.

A comparative analysis with other nations that have navigated similar 5G challenges reveals alternative strategies. Countries like Japan and Australia have taken more diversified approaches, balancing economic benefits with security concerns.

Anwar's apparent one-sided preference might be a missed opportunity for Malaysia to adopt a more balanced and secure technological advancement strategy. Anwar's leadership, in the context of these developments, merits a critical analysis.

His approach appears to be tinged with a preference for Chinese technology. This preferential treatment towards Huawei, and by extension China, raises significant questions about the strategic autonomy of Malaysia’s policies.

The crux of the criticism lies not in the pursuit of technological advancement but in the manner of its execution. The juxtaposition of Anwar's advocacy for a balanced tech ecosystem with the seemingly preferential treatment towards a Chinese company speaks to a larger dilemma in his leadership – the challenge of balancing national interests with international partnerships.

It suggests a potential propensity for prioritizing international relationships, particularly with China, over national security, and economic transparency. This approach, arguably, reflects a concerning inclination towards international diplomacy that may compromise national interests.

The unfolding 5G narrative also spotlights the political dynamics at play, particularly the role of UMNO in shaping the policy.

The perceived marginalization of UMNO’s influence and the centralization of decision-making within Anwar’s administration raise questions about the inclusiveness and democratic nature of the government's approach and his leadership.

This situation has critical implications for a matter as significant as national technological infrastructure, where diverse input and broad consensus are essential for sustainable and effective policymaking. In an era marked by swift technological evolution and shifting geopolitical landscapes, the fate of Malaysia's 5G policy under Prime Minister Anwar Ibrahim emerges as a critical juncture.

Far more than just charting the nation's digital future, it stands as a stark litmus test of Anwar's leadership and his promise of a government underpinned by values of fairness, transparency, and good governance.

The unfolding scenario will not only define Malaysia's technological path but also starkly reveal Anwar’s capacity—or lack thereof—to adeptly navigate the treacherous waters of intricate domestic politics while juggling the often-conflicting demands of international diplomatic relations, a balancing act that has significant implications for Malaysia's stature on the global stage.

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* Rahman Hussin runs his own boutique advisory firm, Imperium Consulting and regularly shares his insights on business, trade, politics and geo-politics.