PETALING JAYA: Maintaining two distinct 5G technology ecosystems could give Malaysian businesses greater flexibility, strengthen their bargaining power and support the country's digital economy, economists say.
They said access to different technology platforms could help companies choose solutions that best meet their operational needs as investment in fifth-generation (5G) connectivity, artificial intelligence (AI) and other digital services grows.
International Islamic University Malaysia economist Noorihsan Mohamad said the benefits of maintaining separate ecosystems extended beyond having more technology options.
"Keeping different ecosystems available can broaden supplier choice, strengthen bargaining power and accommodate businesses with different operational and procurement requirements," he said.
However, he said that businesses needed assurances that the technology systems they invested in would continue to receive support.
"Uncertainty about future support or regulatory treatment can make postponing investment a rational decision," he added.
Global Asia Consulting analyst Samirul Ariff Othman warned that losing the two separate 5G networks and their associated technology ecosystems could increase costs for businesses.
He said complex industrial systems could not necessarily be transferred from one network to another quickly or cheaply.
Noorihsan added that investments in customised systems, integration and staff training could be difficult to recover once companies committed to a particular technology environment.
He also said contracts should clearly specify service performance, support periods, security updates and responsibility for migrating systems to give businesses greater certainty over their investments.
Malaysia's two 5G networks involve different technology partners. Digital Nasional Bhd (DNB) works with Ericsson, while U Mobile has selected Huawei and ZTE.
A March report by ABI Research highlighted the growing economic potential of 5G beyond consumer connectivity, particularly through enterprise and public-sector applications.
It also noted that Malaysia's dual-network model could preserve access to both Western and China-aligned technology ecosystems, supporting openness, resilience and access to innovation in areas such as AI and chipsets.
The capabilities of the two ecosystems were showcased during visits to DNB's My5G Portal and Huawei's AI Lab and Innovation Centre on Oct 12. The visits were held as part of the Institute of Strategic and International Studies Malaysia's "Realising an AI Nation" conference.
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At DNB, demonstrations highlighted industrial applications enabled by 5G connectivity. These included a model vehicle operated remotely from another room and body cameras transmitting live footage to a command centre.
Such applications could be deployed in factories, ports, mines and other environments where reliable, real-time connectivity is essential.
Huawei's facilities showcased a broader range of AI, computing, cloud and storage applications, including tools for fraud detection, transport planning and clinical support.
Presenters also highlighted OpenLab, where partners can test applications using Huawei's AI and computing platforms.
Malaysia has already recorded several enterprise trials and deployments involving 5G technology.
These include Radio Televisyen Malaysia's use of DNB's standalone 5G network for a live-broadcasting proof of concept during the 2024 National Day parade.
Other collaborations involving DNB, Ericsson, eMooVit, Scania and SKF Malaysia have focused on autonomous transport, fleet management and smart manufacturing.
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