BMI: Malaysia’s 5G Adoption Set To Accelerate As U Mobile Secures RM4.3 Bln Funding

KUALA LUMPUR, Nov 27 (Bernama) -- U Mobile Sdn Bhd’s newly secured RM4.3 billion syndicated financing will help the operator accelerate 5G deployment and strengthen its position in Malaysia’s competitive market.

BMI, a unit of Fitch Solutions Group Ltd, said Malaysia’s 5G adoption is expected to rise sharply over the forecast period, with penetration climbing from 36.6 per cent at end-2024 to an estimated 75.9 per cent by 2034.

“In the near term, we anticipate strong potential for 5G fixed wireless access to address last‐mile connectivity gaps, with consumer-focused mobile services accelerating in the medium term as standalone 5G standards mature and a wider range of affordable 5G-capable devices becomes available,” BMI said in a note today.

BMI noted that U Mobile’s 5G roadmap requires substantial multi-year capital and syndicated funding to achieve its deployment ambitions. It said the financing is expected to cover capital expenditure and working capital, supporting the operator’s goal of reaching 80 per cent population coverage by mid-2026.

“The newly secured syndicated funding will underpin U Mobile’s efforts to boost market share, drive average revenue per user growth, and expand into enterprise and fixed wireless access segments,” the note said.

The report added that the operator’s first Mobile Virtual Network Operator wholesale agreement with Eastel, scheduled for launch in the first quarter of next year, underscores its strategic focus on monetising network assets and widening distribution channels.

U Mobile has signed the RM4.3 billion syndicated facility with four banks to support its next-generation 5G network and accelerate nationwide expansion of its ULTRA5G experience. 

CIMB Investment Bank Bhd acted as sole loan coordinator and lead arranger, with financing also provided by CIMB Bank Bhd, CIMB Islamic Bank Bhd, Maybank Islamic Bank Bhd, AmBank Islamic Bank Bhd, and UOB Malaysia.

-- BERNAMA