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According to Edgard D Kagan, the US ambassador to Malaysia, the nation should rely on reputable technology and suppliers for its 5G framework to uphold its status as a safe and dependable hub for worldwide investments.
He highlighted that Malaysia’s existing 5G infrastructure, anchored by trusted providers, positions the country favorably for advanced technology sectors. “You certainly wouldn’t want to conduct business in an environment where your intellectual property (IP) could be compromised.
“Malaysia enjoys a significant edge due to its 5G network constructed with reliable technology sourced from trusted vendors,” he stated following his keynote address at the Penang Institute. When asked if he was hinting at the possible involvement of China-based technology firms in Malaysia’s 5G setup, Kagan reasserted his previous viewpoint.
“I’m merely emphasizing the need for dependable vendors, equipment, and networks that can be relied upon.” Kagan stressed that safeguarding IP rights is vital for Malaysia to elevate itself in the value chain and draw investments from pioneering companies.
He noted that decisions regarding technology investments are frequently influenced by internet protocol security concerns rather than geopolitical issues.
“There is a prevailing sentiment to perceive investment and manufacturing transitions as motivated by geopolitical strains, which holds some validity.
“However, it is also essential to recognize that many companies began relocating their production from China due to worries about IP rights.
“That shift would have occurred totally independent of any geopolitical frictions.” Malaysia has attracted over US$20 billion in investments from major global tech firms such as Google, Microsoft, Nvidia, Oracle, and Infineon in recent times.
Chinese enterprise ByteDance, the parent organization of TikTok, has pledged US$350 million to enhance its data center operations, with the goal of establishing Malaysia as a regional AI center.
Chinese tech giant Huawei has been a longstanding ally of U Mobile Sdn Bhd, which was recently appointed to deploy Malaysia’s second 5G network.
Reports indicate that two analysts cautioned that collaborating with Huawei on the second 5G network could potentially deter Western tech investors due to allegations of espionage and intellectual property theft associated with the Chinese company.