The Southeast Asian country of Malaysia has been warned of the national security and foreign investment risks associated with 5G technologies as the government finalises a review of its rollout plans.

According to letters seen by the Financial Times from envoys to the country from the US and EU, the decision to review the award of a $2.5 billion tender to Ericsson to build a state-owned 5G network could open the door for Huawei to play a role in its telecoms infrastructure.

Huawei, which has been blacklisted by the US government and will be removed from the 5G networks of 35 UK operators by the end of 2027, has lobbied heavily for a role in building Malaysia's network.

One of the letters from Brian McFeeters, the US ambassador to Malaysia, said: “Senior officials in Washington agree with my view that upending the existing model would undermine the competitiveness of new industries, stall 5G growth in Malaysia, and harm Malaysia’s business-friendly image internationally.”

“The US and other countries prioritise a fair and transparent review process and contract sanctity, as does the international business community. Allowing untrusted suppliers in any part of the network also subjects Malaysia’s infrastructure to national security risks.”

The letter from Michalis Rokas, ambassador and head of the EU delegation to Malaysia, held a similar cautionary tone and said that any change from the previously established deal with Ericsson “will not only impact the selected contractor, but is likely to affect more widely Malaysia attractiveness as a business destination for EU investors, in particular on high technology sectors that rely on trusted 5G vendors.”

The FT reports that in an effort to expand its slow-growing 5G coverage, Malaysia could build a second 5G network from next year – one which Huawei would undoubtedly desire a role in establishing.

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