KUALA LUMPUR: The government's financial exposure to Digital Nasional Bhd (DNB) has been reduced to zero following the completion of its RM5.2 billion financing facility, with the company expected to be fully self-financed going forward, Communications Minister Datuk Seri Fahmi Fadzil said.
He said the government no longer had any liability associated with DNB as at the end of September and ruled out further government financial assistance for the company.
"I am happy to say that from the end of September, the government no longer has any liability. We are very thankful that as far as the mobile network operators are concerned, they have committed to what they said they would.
"Today is truly a vote of confidence by the banking sector that DNB is on the right track," he told a press conference after witnessing a document exchange ceremony between DNB and five financial institutions here today.
Asked whether the government expected DNB to be fully self-financed going forward, Fahmi replied, "Yes", while he answered "No" when asked about the possibility of further government financial assistance.
According to DNB's statement, the syndicated Islamic term financing facility, completed on Sept 29, 2026, refinanced its government-guaranteed revolving credit facility and established a sustainable long-term funding structure to support future growth.
The participating financial institutions were Maybank Investment Bank Bhd, AmInvestment Bank Bhd, CIMB Islamic Bank Bhd, RHB Islamic Bank Bhd, and United Overseas Bank (Malaysia) Bhd.
Fahmi said the financing would also act as a catalyst to strengthen the country's first 5G network, enabling DNB to undertake a technology refresh as telecommunications technology and equipment had evolved since the company began operating.
He said equipment purchases enabled by the financing facility would benefit retail consumers and businesses, including factories, ports and warehouses, contributing to the broader economy.
With three major telecommunications companies utilising DNB's network, he said the company's direction and growth prospects were clear.
Earlier in his speech, Fahmi urged DNB to step up efforts to engage multinational corporations, highlighting the value of trusted infrastructure, reliable technology and secure communications.
He said Malaysia's aim was to become a prime destination for the latest telecommunications technology and an example of how interoperable technologies could operate side by side to support businesses.
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