The rollout of 5G networks represents one of the most transformative technological milestones in recent history, promising to revolutionize how industries operate and how consumers interact with digital services. Malaysia stands at an exciting crossroads as it accelerates its 5G infrastructure expansion, positioning itself to leverage this next-generation mobile technology to boost economic growth and enhance connectivity nationwide. Central to this effort is Telekom Malaysia Berhad (TM), the country’s leading telecommunications provider, which is making a significant capital investment to support the deployment of the second 5G network. This strategic move underscores the critical role of fiber backhaul infrastructure in enabling 5G’s unparalleled speed, low latency, and massive data transfer capabilities.
To understand the full scope of Malaysia’s 5G advancement, the focus must be on TM’s planned RM430 million capital expenditure from 2026 to 2027 aimed at ramping up fiber backhaul infrastructure. Fiber backhaul essentially functions as the backbone that carries high volumes of data between core network elements and the distributed radio access points crucial to 5G connectivity. By devoting nearly one-fifth of the projected 10-year contract revenue related to the second 5G network rollout to fiber infrastructure, TM is signaling a strong commitment to ensuring the network can meet the rigors of 5G’s demanding performance requirements. This commitment builds directly on TM’s prior experience, including their landmark RM2 billion fiber leasing contract signed in 2021, which supported Malaysia’s first 5G network. Their ongoing expansion positions TM not merely as a service provider but as a foundational infrastructure partner vital to Malaysia’s telecommunications ecosystem.
Malaysia’s 5G strategy employs a somewhat unique dual wholesale network (DWN) model, which differentiates it from single wholesale network (SWN) frameworks used elsewhere. The DWN encourages competition by allowing multiple operators to independently develop and manage 5G networks rather than consolidating control under a single entity. This model intends to foster innovation, improve service quality, and accelerate the adoption of 5G technology by unlocking market dynamism. TM’s role in this landscape—particularly its fiber backhaul assets—becomes central as a key supplier enabling various operators to access the underlying infrastructure without duplicating costly network construction. The strategic partnership between TM and U Mobile Sdn Bhd, leveraging TM’s extensive fiber network that spans approximately 740,000 kilometers, exemplifies this. Valued at over RM2 billion so far, their collaboration highlights how infrastructure sharing supports competitive rollouts, freeing operators to invest more heavily in radio access networks and new service offerings. This arrangement not only maximizes capital efficiency but keeps the market vibrant, balancing the Malaysian government’s goals of both infrastructure robustness and competitive fairness.
Beyond the national context, TM’s investment aligns with broader global trends where telecommunications companies worldwide are amplifying their capital expenditure particularly on fiber backhaul and 5G deployments. To meet the exploding demand for data and maintain superior service standards, operators are prioritizing high-capacity fiber infrastructure. For instance, Bharti Airtel in India has been aggressively investing in fiber backhaul to prepare for its own 5G network launch. Owning substantial fiber networks is increasingly recognized as a strategic asset, granting operators greater control over network reliability and the quality of service while unlocking revenue streams through leasing arrangements. TM’s fiber build-out reflects this practical and strategic necessity, anticipating the lead time required to ensure fiber infrastructure keeps pace with the phased expansion of 5G radio access technologies. This forward-looking approach safeguards against connectivity bottlenecks when commercial 5G broadens in coverage and user adoption surges, including enterprise-level applications that demand ultra-reliable and low-latency connections.
In summary, Telekom Malaysia’s RM430 million capital outlay on fiber backhaul infrastructure is far more than a monetary figure—it is a keystone in Malaysia’s 5G evolution. Positioned within the dual wholesale network strategy, TM’s initiative strengthens the foundation for cost-effective, high-performance telecommunications networks capable of supporting a new generation of digital services. By enhancing its fiber capabilities, TM not only cements its infrastructure leadership but drives broader benefits by enabling collaboration and competition among 5G operators such as U Mobile. This investment echoes global trends emphasizing fiber as the indispensable enabler of 5G’s promise, ensuring Malaysia can fully harness the speed, responsiveness, and connectivity improvements that 5G offers.
As 5G networks become integral to daily life and business innovation, TM’s fiber backhaul expansion acts as a catalyst for Malaysia’s broader digital economy ambitions. Consumers can expect faster, more reliable mobile experiences, enterprises will gain access to cutting-edge applications, and the nation stands to reap economic gains fostered by next-generation connectivity infrastructure. This unfolding telecommunications story is not just about cables and equipment—it’s about laying down the digital highways that will power the future of Malaysia’s connected society. Land ho, the 5G era is setting sail, and Telekom Malaysia is steering the ship.