DNB borrows RM5.2bn for Malaysia's shared 5G network as the finance ministry plans its exit

A logistics firm putting its handsets on Maxis 5G this month is buying from a part-owner of Digital Nasional Berhad ^[5]. Malaysia created DNB in 2021 to hold the country's 5G spectrum and to serve several carriers from one network ^[1]. Maxis, CelcomDigi and YTL Communications own 68.82% of DNB between them, and the finance ministry holds the rest ^[14][5].

The pitch around the loan looks forward. "With strong financing, enhanced spectrum resources and a proven nationwide 5G platform, DNB is well positioned to support the government's AI Nation aspirations and help power Malaysia's next phase of digital growth," said Datuk Azman Ismail, DNB's chief executive ^[9]. A company set up to be a state 5G agency is borrowing from banks so that it has, in Azman's words, "a sustainable platform to operate on its own" ^[1][13].

U Mobile sold its stake last year to build its own 5G network, selling 33,333 shares each to CelcomDigi, Maxis and YTL ^[11]. Telekom Malaysia dropped out of the DNB agreement in 2024 and now has a three-year wholesale deal to offer 5G over U Mobile's network instead ^[12]. Two carriers left, and the three that stayed bought more of the company ^[11][12].

Azman said the financing "reflects strong confidence in our business fundamentals, operational track record, and long-term role in Malaysia's digital economy" ^[8]. Five banks lent on that view. Maybank Investment Bank led, with AmInvestment Bank, CIMB Islamic, RHB Islamic and UOB Malaysia as joint mandated lead arrangers ^[4]. The report does not include the loan's tenor, pricing or security.

For the person buying 5G for a Malaysian business, the decision now has two parts. The first is which network sits under the contract: the DNB network its carrier shareholders use, or U Mobile's, sold directly or through TM ^[1][12]. The second is whether the contract runs past the next change you can see coming. For TM customers that date is the end of the three-year wholesale term ^[12]. For DNB customers it is open, because the ministry's exit is described only as eventual ^[6].

Short contracts on either network let the buyer decide again when a change lands. Through TM, a long contract should spell out what happens when the U Mobile wholesale term comes up for renewal ^[12]. On DNB's network, a long contract should state in writing what the carrier commits to if DNB's ownership changes ^[6]. Bought directly from U Mobile, a long contract sits with an operator that chose to build its own network ^[11].

I'd keep commitments on DNB's network short until the ministry names a date, and keep TM-based commitments inside the wholesale term ^[6][12]. The tradeoff is renegotiating more often and giving up whatever a longer term would have earned on price.