5G network project cost does not involve govt financing or guarantee
KUALA LUMPUR,. The cost of implementing the 5G network will be financed through a combination of deferred financing to vendors, trade financing and working capital, as well as sukuk programmes to be issued in the country’s capital market.
“It will also not involve any government guarantee or funding, either indirectly or with permission, off-balance sheet, as claimed by some,” Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said today.
He said Digital Nasional Bhd (DNB), the 5G special purpose company, would obtain financing through financial institutions such as banks, and this would be repaid through sales revenue generated from wholesale capacity sales, he said during a question and answer session in Parliament today.
Tengku Zafrul was answering additional questions claiming that the government did not have the same competence as the private sector in implementing or providing such services, such as building 5G networks and DNB’s ability to deliver 5G services successfully.
He stressed that DNB also has the opportunity and potential to achieve success like government-owned companies.
“What is important is a high level of capability and professionalism in the implementation of each plan and strategy,” he said.