U Mobile Taps Chinese Investment for 5G Expansion Deal

Huawei Technologies and ZTE Corp will lead investment into U Mobile’s deployment of Malaysia’s second 5G network. The announcement came on the same day Chinese President Xi Jinping returned to Kuala Lumpur. This development reflects China’s growing investment in Malaysia’s digital and infrastructure sectors.

Huawei will manage the 5G rollout in Peninsular Malaysia. ZTE will handle deployment in East Malaysia. U Mobile Chairman Tan Sri Vincent Tan confirmed both vendors passed a rigorous and transparent selection process. He highlighted their global experience and long-standing investment in U Mobile’s infrastructure.

President Xi’s return visit follows his first in 2013 under then-Prime Minister Najib Razak. The timing underscores deepening China-Malaysia ties. Prime Minister Anwar Ibrahim’s coalition, Pakatan Harapan, had previously criticized Najib’s close alignment with Beijing. Today, Anwar’s administration embraces Chinese investment, especially in critical infrastructure like 5G.

5G Investment comes at time of turmoil for Malaysia

Malaysia’s pivot comes amid frosty relations with the United States. Former U.S. President Donald Trump closed USAID operations in Malaysia. That agency previously supported civil society groups linked to Pakatan Harapan. Trump also imposed tariffs on Malaysian exports. These actions discouraged American investment.

U Mobile CEO Wong Heang Tuck outlined the 5G funding strategy. The company will use internal capital, bank loans, vendor investment, and IPO proceeds. Wong declined to reveal the exact figure. However, he estimated the total investment will run into billions of ringgit. U Mobile targets 80% population coverage within 12 months. It plans to reach 90% in the second year.

Chinese investment also drives industrial growth. Projects like the Malaysia-China Kuantan Industrial Park (MCKIP) and Belt and Road initiatives have transformed local economies. China remains Malaysia’s top trading partner. The 5G deal marks a deeper partnership. Chinese investment will now play a central role in technological future of Malaysia.