THE government is neither funding nor guaranteeing the loans of special-purpose vehicle company Digital Nasional Bhd (DNB) Finance Minister Tengku Zafrul Abdul Aziz said today.

He said that DNB will obtain funds from banks, and this will be repaid through sales proceeds generated from its capacity as a wholesaler.

“It will not involve any guarantee or financing from the government, particularly indirectly, or off-balance sheets, as alleged by some quarters.

“DNB is financed through a combination of deferred financing to vendors, trade financing and working capital, as well as a Sukuk programme to be issued in the capital market,” he said in a written parliamentary reply to Fahmi Fadzil (Lembah Pantai-PH).

DNB was established in March 2021 to drive the development of 5G infrastructure in Malaysia.

Fahmi had asked Zafrul for the amount of government funding for DNB since its inception in 2021.

He also asked about the number of telecommunication towers erected by DNB.

Zafrul said as of January, DNB had obtained commercial financing amounted to RM 1.7 billion.

He said the company had spent RM544 million in the same period, including on 5G network infrastructure, hardware and working capital.

“On December 25, 2021, 5G networks were set up in Kuala Lumpur, Putrajaya and Cyberjaya. 

“A total of 500 sites have been successfully integrated as of January 9, 2022, while until the end of 2022, 3,500 more sites are targeted to cover Penang, Johor, Sabah, Sarawak, Selangor, Negri Sembilan and Malacca.”

Zafrul said government also expects the implementation of 5G to be done efficiently and smoothly to benefit all stakeholders. 

“This is because 5G is an enabler to improve the well-being of the people and enhance the country’s competitiveness. 

“At the same time, it will also encourage technology-based investment from within and outside to the country.” – March 10, 2022.