STRAITS Mobile Investment Pte Ltd, a foreign company from Singapore, will reduce its shareholding in U Mobile Sdn Bhd from 49% to 20% to increase the percentage of local ownership.
This is following various criticisms and questions raised after U Mobile was selected by the Malaysian Communications and Multimedia Commission (MCMC) to be the country’s second 5G network provider.
U Mobile said in a statement that Straits Mobile Investment, a wholly owned unit of ST Telemedia headquartered in Singapore, agreed to a strategic adjustment of its shareholding ownership.
In the meantime, U Mobile said it is ready to lead the second 5G network in line with national priorities by strengthening local involvement and participation in critical telecommunications infrastructure.
“While foreign ownership is common in the telecommunication sector, U Mobile’s strategy prioritises Malaysian industry development and the strengthening of local ownership.
“This increased local partnership supports U Mobile’s dedication to national interests,” said the statement yesterday.
The statement added that, with a track record of over 17 years in innovation, growth and network expansion, U Mobile is confident that it will be able to roll out fast and cost-efficient 5G for Malaysia.
It said that despite being the newest telecommunications company, the total number of U Mobile users had reached nine million by the end of 2023, making it a market challenger to the industry.
Last week, Communications Minister Fahmi Fadzil said the general conditions for foreign equity holdings in individual licences for network facility providers and network service providers are limited to 49% with Bumiputera ownership being mandated to be at least 30%.
“Currently, U Mobile’s foreign equity holdings remain within the limits set by the special conditions of the licence granted to the firm,” he told the Parliament.
Fahmi said the decision to choose U Mobile as the second 5G network provider does not violate the special licence conditions set for the firm.
Fahmi was responding to a question from Pasir Gudang MP Hassan Karim who asked whether the selection of U Mobile as the second 5G network provider violated the conditions of its licence since the majority shareholder is a Singaporean firm.
In the meantime, U Mobile said the management of the second 5G network does not require Putrajaya funds.
“U Mobile would like to assure all stakeholders that it will continue to be well supported without relying on government funding,” it said. — TMR
