Malaysia’s 5G deal award to U Mobile tycoon fuels ‘crony-poly’ allegations

U Mobile, the smallest of the three bidders, is linked to tycoon Vincent Tan, who has close relations with Malaysia’s top political leaders

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Published: 9:35am, 13 Nov 2024Updated: 12:19pm, 13 Nov 2024

The decision to award Malaysia’s second 5G network roll-out to U Mobile, a company linked to tycoon Vincent Tan, has revived the spectre of crony capitalism in the country, as demands for transparency mount about the selection process.

After months of speculation that public-listed telecoms company Maxis would land the deal, the government ultimately granted it to U Mobile – considered the smallest of the three bidders – earlier this month.

Had Maxis won, it would have paved the way for Chinese tech giant Huawei Technologies to serve as a key partner in the network roll-out. Western powers and security experts previously warned this could expose Malaysia to potential risks of state-sponsored espionage.

Tan, who chairs U Mobile, defended the decision, asserting that the company’s network coverage is “on par” with its larger rivals. He stressed the need for a second network to dismantle the “monopolistic single network model” established by former Prime Minister Muhyiddin Yassin’s administration.

This jab prompted angry retorts from Muhyiddin’s party, Bersatu. One member, Wan Saiful Wan Jan, responded by challenging Tan to explain his ties with the chairman of the Malaysian Communications and Multimedia Commission (MCMC), which handled the tender process.

“Vincent said he wants to get rid of a monopoly. Does he realise that a monopoly cannot be removed by creating a crony-poly?” Wan Saiful said in a statement on Monday.