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Friday, May 19, 2023

‘Friendly advice’ or veiled threats on Malaysia’s 5G rollout?

 

I read with amusement a recent Financial Times article with the headline “EU and US warn Malaysia of ‘national security’ risk in Huawei’s bid for 5G role”.

The highly regarded UK financial newspaper was referring to the US and European Union (EU) ambassadors to Malaysia writing letters to the Malaysian government last month “warning Malaysia” over risks to national security and foreign investment as it finalises a review of its 5G rollout.

The envoys alleged that Huawei, the Chinese telecommunications equipment maker blacklisted by Washington, had “lobbied heavily” for another chance at a role in building Malaysia’s 5G network.

The two envoys were referring to Prime Minister Anwar Ibrahim’s order to review the RM11 billion 5G network contract awarded by Digital Nasional Bhd (DNB) – a special purpose vehicle under the finance ministry – to Swedish telecommunications equipment maker Ericsson under the previous administration.

In his letter, US ambassador to Malaysia Brian McFeeters warned of “national security risks” unless Malaysia stuck with its original plan for 5G deployment. He said allowing “untrusted suppliers” in any part of the network subjects Malaysia’s infrastructure to national security risks.

Michalis Rokas, ambassador and head of the EU delegation to Malaysia, said any change would “likely impact negatively and significantly the contractual terms agreed upon at the time of the launch of the open tender”.

The actions of the two envoys to write to the Malaysian government over its internal review of a government project goes against accepted diplomatic protocols. Even the FT article acknowledges that.

It quoted a person familiar with the discussions reviewing the 5G network contract award as saying “this diplomatic message is pretty unusual”.

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“It wasn’t just a shot across the bow – both envoys said they want to discuss it further,” the source added.

The envoys may well argue that the US and EU are concerned for Malaysia, and that it is giving “friendly advice” to ensure its national security is not undermined by untrusted suppliers who may spy on the government.

Let’s not kid ourselves that the US and EU care anything about Malaysia’s best interests. By deliberately inserting Huawei into the conversation, it is just confirming what everyone knows – that this is just another iteration of the US’ proxy war against its adversary China.

Pentagon leaks

I mentioned my amusement at the beginning of this article. Well, I had to chuckle when I read the FT article that the US was concerned that Chinese telecommunications providers would spy on Malaysia.

The irony of the situation was not lost on me. In the same month that the US envoy wrote his letter warning our government about potential spying, the US was caught red handed doing the very thing it was warning Malaysia about.

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I’m referring to the stunning Pentagon Leaks scandal that blew up in early April.

The leak involved a huge cache of classified Pentagon documents that revealed national security secrets as well as embarrassing details about US espionage methods and spying on adversaries and allies alike. The Pentagon has since confirmed the leak’s authenticity, and arrested the suspected leaker.

The classified documents exposed that the US spied on United Nations chief António Guterres and the office of the South Korean president Yoon Suk Yeol.

There’s more – European media reported in April last year that the US had utilised Denmark’s secret service to conduct surveillance on leaders of numerous European countries, including then German Chancellor Angela Merkel. Lest we forget, South Korea and Germany are staunch allies of the US.

Arm twisting?

Given the US’ questionable track record, ambassador McFeeters should have just kept his opinions to himself.

Ambassador Rokas should have done the same as well. In his letter, he implied that if Ericsson was sidelined in the 5G rollout, it may affect Malaysia’s attractiveness as an investment destination.

He noted the EU had more than €25 billion invested in Malaysia and European companies “place high value on clear policy direction”.

“Any change will not only impact the selected contractor, but is likely to affect more widely Malaysia’s attractiveness as a business destination for EU investors, in particular on high technology sectors that rely on trusted 5G vendors,” he wrote, according to the FT article.

Emphasising a similar message, McFeeters said that “upending the existing (5G) model would undermine the competitiveness of new industries, stall 5G growth in Malaysia, and harm Malaysia’s business-friendly image internationally”.

I could be wrong, but these statements sound very much like a veiled threat.

Test for the government

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Fortunately, our government has responded firmly and responsibly against such diplomatic pressure. Communications and digital minister Fahmi Fadzil confirmed the existence of the letters when he brushed off the concerns raised by the US and EU envoys.

“It’s important for us to stress that as a sovereign nation, Malaysia and the Malaysian government have the right and power to decide on our own policies without interference by others,” he said when asked by the press on the envoys’ letters.

He stressed any decision by the government on the 5G rollout would not only benefit the people and spur economic growth but would be made “harmoniously” with international concerns.

Kudos to Fahmi for having the fortitude to emphasise that Malaysia is a sovereign nation that will make its own decisions to benefit its people, without bowing to pressures by external powers, be it China, US or the EU.

The government will soon be tested on its resolve to be a sovereign nation as Putrajaya has agreed to a second 5G service provider, which would be determined through an open tender process.

Given that Huawei will likely join the fray to bid for the second 5G network, you can expect the US and EU to up the ante in their geopolitical contest with China, with Malaysia’s 5G rollout as the battleground for the great powers. - FMT

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The views expressed are those of the writer and do not necessarily reflect those of MMKtT.

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