EU, US warn Malaysia of security risk in Huawei’s bid for 5G role – FT

On Tuesday, the Financial Times reported that the EU and U.S. warned Malaysia about national security and foreign investment risks as it finalizes an assessment of its 5G rollout that might allow Huawei Technologies Co Ltd. to bid for a position in its telecoms infrastructure.

According to FT letters, EU and U.S. envoys to Malaysia wrote to the government in April after it chose to examine a decision to grant Ericsson an 11 billion ringgit ($2.5 billion) tender to create a state-owned 5G network.

Due to industry concerns over pricing, transparency, and a government-run monopoly, Malaysia’s 5G rollout has repeatedly stalled.

The authorities previously ignored US security concerns, making Huawei the frontrunner for the contract.

“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,” U.S. ambassador to Malaysia Brian McFeeters wrote in one of the letters.

“Allowing untrusted suppliers in any part of the network also subjects Malaysia’s infrastructure to national security risks.”

Huawei, the U.S. embassy in Kuala Lumpur, the EU delegation, and the Malaysian Ministry of Communications and Digital did not immediately respond to Reuters requests for comment.