The Malaysian government is now under increasing pressure from the United States and the European Union to prevent Huawei from building its 5G network infrastructure, TechRadar tells us in a report.
The United States and the European Union have expressed worry that allowing Huawei to engage in network construction could jeopardize national security and dissuade other investors.
Malaysian Government Now Looking Into 5G Deal
According to reports by MobileWorldLive, Malaysian Prime Minister Anwar Ibrahim has ordered a review of the 5G network buildout contract awarded to the Swedish conglomerate Ericsson following claims of a lack of openness in the awarding process.
Local operators have also requested the government to allow for the establishment of a second network in order to speed up deployment and improve security.
Western nations fear that Huawei will be awarded the second network, especially since Malaysia approved the project last month. The second wholesale network is scheduled to be finished in January 2024.
What's With Huawei's 5G
Due to security concerns, Germany stated in March that it would prohibit the use of specific components supplied by Chinese companies Huawei and ZTE in 5G networks.
This announcement comes on the heels of similar actions taken by the United States, the United Kingdom, and Sweden, which have already barred those mentioned companies from selling essential 5G network equipment.
US Officials Sound the Alarm
TechRadar also mentions that the US ambassador to Malaysia, Brian McFeeters, has cautioned that allowing Huawei to participate in network construction might harm competition, impede 5G growth, and harm the country's worldwide reputation as a business-friendly nation.
Similarly, Michalis Rocas, the head of the EU delegation in Malaysia, told the Malaysian government that the EU had invested more than €25 billion in the country and that giving the contract to Huawei would make the country less appealing to investors.
Huawei Remains Under Scrutiny
Western governments, particularly the US, have scrutinized Huawei for some time, with suspicions that the Chinese government is misusing the Chinese telecoms giant. US sanctions have already impacted the firm's revenue for a while.
Furthermore, over the last three years, the company has overcome US sanctions by redesigning and replacing over 13,000 components and 4,000 circuit boards.
According to some sources, the government may order the corporation to embed backdoors into its infrastructure, letting Chinese agents eavesdrop on important Western exchanges.
The Chinese government and Huawei executives have rejected these allegations, with Huawei claiming that it was never requested to do so and would not comply.
However, these concerns have prompted some Western countries, including the United States, to prohibit Huawei from constructing critical 5G infrastructure elements.
Malaysia's government is yet to make a final judgment on the network construction contract. However, it must weigh the risks of allowing Huawei to participate against the benefits of having a second network and the potential damage to its international reputation if it ignores the US and EU's warnings.
The stakes are high for Malaysia as it strives to become a significant player in the digital economy, with 5G networks playing a critical role in that effort.
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Related Article : Germany Bans Huawei, ZTE 5G Components Over Security Concerns
