This was announced by U Mobile today, in the wake of questions raised after it was selected by the Malaysian Communications and Multimedia Commission (MCMC) to be the country’s second 5G network provider.

In a statement, U Mobile said Straits Mobile Investment Pte Ltd, a wholly owned unit of Singapore-headquartered ST Telemedia, agreed to the “strategic alignment of its shareholding ownership” from 49% to 20%.

It said this will in turn increase U Mobile’s Malaysian ownership.

U Mobile added that it was ready to spearhead the second 5G network in line with national priorities by strengthening local engagement and participation in critical telecommunications infrastructure.

“While foreign ownership is common in the telco sector, U Mobile’s strategy prioritises Malaysian industry development and strengthening of local ownership.

“This increased local partnership supports U Mobile’s dedication to national interests,” the company said.

Last Thursday, communications minister Fahmi Fadzil told the Dewan Rakyat that the general requirements for foreign equity holding in individual licences for network facility providers and network service providers were capped at 49%, with Bumiputera ownership mandated at a minimum of 30%.

“Currently, U Mobile’s foreign equity holding remains within the limits set by the licence’s special conditions granted to the firm,” he said.

He added that the decision to select U Mobile as the second 5G network provider did not violate the special licence conditions set for the firm.

He was responding to Pasir Gudang MP Hassan Karim who had asked if U Mobile’s selection as the second 5G network provider had violated its licence conditions since the majority shareholder is a Singaporean firm.

Meanwhile, U Mobile said its management of the second 5G network will require no funds from Putrajaya.

“U Mobile would like to assure all stakeholders that it will continue to be well supported with no reliance on government funding,” it said.