KUALA LUMPUR, Oct 21 — Malaysia’s major telcos are set to gain a bigger say over Digital Nasional Bhd’s direction as the wholesale 5G operator moves closer to a new ownership structure led by CelcomDigi, Maxis and YTL Power.
The transition follows DNB’s completion of a RM5.2 billion financing exercise, paving the way for the Ministry of Finance Inc (MOF Inc) to exit as an ordinary shareholder.
CelcomDigi, Maxis and YTL are expected to hold equal stakes in DNB, while MOF Inc will retain a special share covering key strategic matters. The transition is reportedly expected to be completed in early Q4 2026.
The change will give the mobile-network operators a larger role in steering DNB at a time when the telecommunications sector is under growing pressure to improve costs and network efficiency.
CGS International Research said earlier this month that once the share transfer is completed, the shareholders would be able to streamline DNB’s operations to minimise losses and improve the efficiency of the 5G rollout.
BIMB Research also recently said Malaysia’s telecommunications sector was increasingly shifting towards cost optimisation and disciplined execution as growth in the consumer segment remained modest.
Analyst Jamil Ghani, a PhD student at S Rajaratnam School for International Studies, said this could gradually change how DNB weighs its commercial and technology decisions.
“Future technology decisions are more likely to be driven by cost, performance, contract renewals, enterprise demand, interoperability, regulatory requirements and the transition towards 5G-Advanced and eventually 6G.”
However, he said it remained unclear whether the change would translate into any immediate shift in DNB’s technology suppliers.
“Ericsson’s 10-year partnership with DNB began in 2021,” he said, noting that it leaves roughly five years of existing commitments that would still have to be factored into future decisions.
DNB’s next move
DNB is now moving into a new phase focused on driving greater 5G adoption among businesses and industries.
Speaking on Oct 19, communications minister Fahmi Fadzil urged DNB to step up efforts to promote its 5G infrastructure to multinational companies, particularly secure and reliable connectivity solutions amid growing geopolitical uncertainty.
He also said that the government no longer held any financial obligations to DNB and has ruled out further state support.
DNB chief executive Azman Ismail said the company would work with its mobile-network operator shareholders, customers and technology partners to bring more practical 5G applications to market, including in manufacturing, logistics, healthcare, education, agriculture and smart cities.
He said high-quality and resilient connectivity would become increasingly important as businesses adopt more data-intensive and AI-powered applications at scale.
DNB was initially set up in 2021 as a wholly government-owned vehicle to build and operate Malaysia’s 5G network.
The government then announced a shift to a dual-network model in 2023. U Mobile was selected to build the second network, using China’s Huawei and ZTE technology.
MOF originally held a 35 per cent share in DNB. By Aug 2025, MOF Inc’s interest had risen to 41.67 per cent, while CelcomDigi, Maxis and YTL each held 19.44 per cent, following U Mobile’s exit from DNB’s shareholding. But in Dec 2025, MOF Inc subsequently exercised its put option, requiring CelcomDigi, Maxis and YTL Power to acquire its remaining equity and shareholder advances.