Digital Nasional Berhad (DNB) has raised RM5.2 billion through an Islamic financing facility to fund the next phase of Malaysia's national 5G network, according to a report by NST Online.

The figure is the largest single financing commitment disclosed for the country's 5G build since the wholesale network model was established. DNB, the state-backed vehicle that owns and operates Malaysia's single shared 5G network, will channel the proceeds into what the report describes as the next 5G phase of the deployment.

Who is DNB and why does the money matter?

DNB operates as Malaysia's sole wholesale 5G network operator, a structure under which the country's mobile operators rent capacity on one shared infrastructure rather than each building rival networks. The model was designed to cut duplication and accelerate coverage, but it has drawn sustained criticism from some of Malaysia's mobile operators over pricing, transparency and the absence of competing 5G layers.

A RM5.2 billion Islamic facility signals that DNB's funding strategy now rests substantially on sharia-compliant debt instruments rather than only on government support or shareholder injections. Malaysia is one of the world's largest Islamic finance markets, and infrastructure sukuk and similar structures are established channels for large telecom and utilities projects there.

What does the loan pay for?

According to the report, the financing covers the next 5G phase of DNB's rollout. Under the original wholesale plan, the government set phased coverage targets for the shared network, with later stages intended to extend coverage beyond the initial footprint and to carry the network toward wider commercial use by all of the country's mobile operators.

The NST Online report did not itemise how the RM5.2 billion splits across spectrum, radio equipment, transport or core network spending, and DNB has not publicly broken down the allocation. Vendors supplying the network have included the major international equipment makers contracted during the first phase of the build.

How does this fit the regulatory picture?

Malaysia's 5G policy has been in flux since the government moved to introduce a second 5G network after the first phase reached its coverage milestones, a shift intended to reintroduce infrastructure competition while keeping the DNB model intact for existing commitments. The government has said the transition to a dual-network structure would be managed so that the first network's rollout is not disrupted.

Financing of this size, raised at the operator level, indicates DNB is funding its obligations under that framework independently. It also gives the wholesale operator committed capital for a period in which its commercial position depends on mobile operators continuing to take capacity on the shared network.

What happens next?

The loan's drawdown and deployment will track the next phase of Malaysia's 5G timetable, including the coverage and usage commitments attached to the dual-network transition. Operators, lenders and equipment vendors will watch how quickly the RM5.2 billion converts into additional sites and capacity, and how the second-network policy settles in practice.