15-5-2024 (KUALA LUMPUR) Despite Malaysia’s rapid strides in 5G expansion, nearly half of its 34 million population residing outside urban hubs grapple with substandard internet connectivity, reveals the CEO of a regional telecommunication tower builder. This digital disparity casts a shadow over the country’s ambitions in 5G technology.
According to Suresh Sidhu, CEO of EdgePoint, around half of Malaysia’s 30,000-plus telecommunication towers are concentrated in just four states, notably Selangor and Penang, along with Negeri Sembilan and Perak, clustered on the west coast.
“The existence of a communication deficit in Malaysia, as stated by the government, is indeed substantial,” remarked Suresh, highlighting the significant digital gap faced by rural communities.
The push for “digital transformation” under Prime Minister Anwar Ibrahim’s administration has led to extensive infrastructure development to facilitate 5G expansion across Malaysia. Despite being lauded for its speedy rollout and high-speed connectivity, especially in populated areas, the coverage in rural regions remains inadequate.
Malaysia boasts one of the world’s fastest 5G networks, with over 80.5 per cent coverage in populated areas and more than 11 million subscribers as of February. However, the government’s pledge to extend 5G coverage to half of the rural areas is yet to materialize fully.
This discrepancy in internet access mirrors the broader trend across Southeast Asia, where rural communities are left grappling with sluggish and unreliable internet connections, exacerbating the digital and economic disparities.
For rural residents, inadequate internet access translates to limited educational resources and hampers business expansion opportunities. Suresh noted that this trend is mirrored in neighbouring countries like Indonesia and the Philippines, where tower infrastructure is primarily concentrated in commercial hubs, leaving rural areas underserved.
Despite significant investments in tower leases, estimated at up to US$3 billion annually across Malaysia, Indonesia, and the Philippines, rural coverage remains a challenge. Suresh highlighted the lack of scalable rural infrastructure and called for collaborative efforts between the public and private sectors to bridge the rural-urban connectivity gap.
To address these challenges, Suresh suggested incentives such as cheaper site rentals and preferential spectrum pricing to encourage investments in underserved areas. Additionally, opening up more broadband spectrum at affordable rates for rural users could help narrow the digital divide.
