Teraju targets RM650b GOS in 5G infrastructure

by ANIS HAZIM / pic by TMR FILE

THE Bumiputera Agenda Steering Unit (Teraju) aims to achieve RM650 billion of the gross operating surplus (GOS) in the Internet of Things (IoT) from Bumiputeras companies by 2030.

Chairman Datuk Seri Mohd Redzuan Mohd Yusof (picture) said the target, however, needs participation from the private and public to fund the IoT projects such as the 5G infrastructure.

“The government cannot undertake all of it. It has to come from partnerships from various centres and stakeholders,” Mohd Redzuan said at the heads of agreement (HoA) signing ceremony of the 5G Infrastructure on Monday.

According to him, the cost to roll out the 5G infrastructure will probably triple compared to the previous spend of RM20 billion.

“We need more funds because we need to fund the cost of having multiple networks, multiple highway data, then we have the redundancies and so on,” he said.

According to Mohd Redzuan, six listed Bumiputera companies will invest in the country’s 5G venture via 5G Infratech Solutions Sdn Bhd. The consortium is led by SMTrack Bhd and joined by Country Heights Holdings Bhd, Jiankun International Bhd, Sersol Bhd, Techna-X Bhd and MQ Technology Bhd.

The HoA between the companies is expected to undertake a series of corporate exercises to raise funds and finance for the 5G and fibre optics related projects by Digital Nasional Bhd (DNB) and Malaysian Communications and Multimedia Commission.

“We support the business structure proposed by 5G Infra Tech Solution Sdn Bhd. The consortium would enable our Malaysian 5G network project to be locally funded and thus saving billions of foreign exchange outflow for our country,” he added.

Additionally, he said that this consortium is aligned with Teraju’s key economic growth area, a digital economy under Bumiputera Development Action 2030, which is to empower Bumiputera involvement in high impact businesses.

SMTrack deputy executive chairman Azmi Osman, who was also present at the signing ceremony, said the consortium has foreseen many joint ventures funding the installation of 5G telecommunication towers.

“5G Infra Tech will undertake its maiden 5G projects in collaboration with Ennova Sdn Bhd who already has been one of the contractors for 5G projects by DNB.

“The investment in 5G telecommunication companies such as Ennova will definitely improve the consortium’s revenue stream and bottom line,” Azmi said.

5G Infra Tech executive chairman Datuk Saiful Nizam Mohd Yusoff said that Ennova has plans to install and maintain 350 telecommunication towers all over Kuala Lumpur.

“With the huge financing from 5G Infra Tech, Ennova can easily roll out 10,000 towers all over Malaysia,” he said.

Meanwhile, Sersol MD Datuk Justin Lim Hwa Tat believes that investing in the telecommunication industry in this digital age is a strategic investment with a profitable return.

“We are optimistic that these consortiums will post a strong combination and synergy strive to realise this programme and make it a profitable and successful venture,” he said.

Citing the estimate from the Malaysian Institute of Economic Research, Jiankun ED Datuk Seri Tan Choon Hwa said the 5G-related economic activities are estimated to contribute an additional RM12.7 billion to the GDP between 2021 and 2025.

“In 2025 alone, the contribution of 5G to the Malaysian GDP is expected to reach RM5.3 billion in subsequent years,” Tan said.

He projected that the shares of 5G and 5G-enabled IR4.0 activities in Malaysia’s GDP will continuously rise in the upcoming years.