U MOBILE Sdn Bhd has committed to reducing its foreign ownership stake to 20% from 49%, following its selection as the second 5G network provider in Malaysia.

The decision aligns with the company’s strategy to increase local ownership and contribute to national priorities in telecommunications.

Straits Mobile Investments Pte Ltd, a subsidiary of Singapore-based ST Telemedia, which holds a significant stake in U Mobile, has agreed to the reduction, ensuring greater control by local investors.

“While foreign ownership is common in the telco 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,” it said in a statement on Sunday.

U Mobile emphasised that this strategic shift is aimed at bolstering local industry development and supporting national interests.

The company also expressed confidence that the second 5G network would lead to better, more affordable services for Malaysians, driven by healthy competition in the telecommunications sector.

The company reassured stakeholders that the second 5G network will be well-supported and will not rely on government funding.

U Mobile’s selection for the second 5G network, announced by the Malaysian Communications and Multimedia Commission (MCMC) on November 1, came as a surprise, given its smaller scale compared to larger competitors like Maxis and CelcomDigi.

Despite this, U Mobile is optimistic about its ability to innovate and expand 5G coverage across the country.

Communications Minister Fahmi Fadzil confirmed that U Mobile’s plan to reduce foreign ownership complies with the special licence conditions, ensuring the company’s selection is in line with government regulations. —Nov 10, 2024 

https://focusmalaysia.my/u-mobile-to-reduce-foreign-stake-to-20-following-selection-for-malaysias-second-5g-network/