APPGM-IGAC demands full transparency in U Mobile's selection as second 5G network provider
The group stresses the urgency of clarifying key aspects of the selection process, which, despite government assurances, remains opaque and potentially vulnerable to cronyism.
SHAH ALAM - The All-Party Parliamentary Group Malaysia (APPGM) on Integrity, Governance and Anti-Corruption has issued a strong call for the Malaysian government to disclose further details regarding the recent decision to select U Mobile Sdn Bhd as the nation’s second 5G network provider.
The group stresses the urgency of clarifying key aspects of the selection process, which, despite government assurances, remains opaque and potentially vulnerable to cronyism.
Representing various civil society groups, the APPGM said that public trust was at stake, with concerns surrounding the decision's transparency casting doubt on its fairness and competitiveness.
The concern had been voiced by both citizens and stakeholders, who worried about the potential ramifications of a non-transparent process on Malaysia’s digital infrastructure and economic future.
The APPGM emphasised the need for clarity on the specific metrics and criteria that led to U Mobile’s selection.
"We urge the government to further clarify the process and criteria used to select U Mobile as the second 5G network provider.
"Even if a rigorous selection process has been followed as stated by Communications and Digital Minister Fahmi Fadzil, the government should nonetheless provide disclosure regarding the decision-making process within those metrics and the reasoning behind why certain criteria may have carried more weightage than others —merely stating that criteria has been adhered to is not a substitute for transparency," the group said in a statement.
Recently, Fahmi addressed Parliament on Nov 7, noting that the decision was not a direct award and that it involved rigorous commercial and technical evaluations, including U Mobile's history with infrastructure projects.
However, civil society groups argue that these assurances, while informative, do not fully address concerns over the decision’s transparency.
Another critical area the APPGM has demanded clarity on is the cost-benefit analysis that led to U Mobile’s selection.
"The government must also disclose the cost-benefit analysis undertaken that ultimately led to U Mobile being selected, and this involves answering further queries, such as reasons behind the decision not to conduct an auction for bidding with the license going to the highest bidder, which would entail forgoing potential government revenue," it added.
The APPGM has asked the government to disclose U Mobile’s projected revenue from its allocated 700MHz and 3.5GHz spectrums and the specific economic benefits the arrangement is expected to provide for Malaysia.
"It is important that the government clarify the reasoning behind making certain concessions in order to demonstrate that it ultimately benefits Malaysians.”
The APPGM also insists on complete disclosure of the contractual obligations between U Mobile and the government, including precise role, rollout commitments and the performance benchmarks it must meet.
According to the APPGM, these details were crucial for public oversight, as Malaysia has previously experienced high-profile project failures due to unclear obligations.
The APPGM advocates that the draft Procurement Bill be made available for public and civil society review before it is tabled in Parliament, thereby enabling a comprehensive and accountable legislative process.
The APPGM also stressed the importance of leadership and accountability in government decisions, particularly in the allocation of licenses and resources.
“Prime Minister Datuk Seri Anwar Ibrahim has pledged to uphold good governance, and we believe this commitment requires immediate action on these transparency measures,” APPGM stated.
