Budget 2024 should focus on 5G awareness, emerging technologies - Analyst

KUALA LUMPUR - The government should continue driving awareness on 5G network usage among consumers, businesses and its emerging technologies to enhance the adoption of the network in Budget 2024, said an analyst.

Budget 2024, to be tabled in the Dewan Rakyat on Oct 13, will be the second budget announced by the unity government.

GlobalData principal analyst Alfie Amir told Bernama the awareness of 5G could be realised by implementing 5G-related technologies among relevant parties to lead the adoption rate.

"The focus should be emphasised on developing regulations around private usage of 5G spectrum to promote private 5G network adoption, along with emerging technologies such as cloud computing and generative artificial intelligence (gen-AI).

"We should also look into developing regulations around AI to drive awareness and adoption of the technologies as there are still concerns around privacy and security,” he said.

Alfie added that accelerating the implementation of the dual-network model for 5G implementation will drive telecommunication companies’ (telcos) innovation in 5G and accelerate market development.

As of September 2023, Malaysia’s 5G network coverage in populated areas stood at 70.2 per cent, with 5G subscriptions totalling 2.49 million, translating to a penetration rate of 7.4 per cent.

He said Malaysian telco providers continued to show great performance in 2023, underpinned by steady growth despite the saturated mobile market, increased competition and the 5G situation in the country.

GlobalData estimates the market to continue to grow at 2.6 per cent year-on-year (y-o-y) to RM30.8 billion this year, Alfie added.

Fixed-line segments, which account for about a quarter of the total market, are expected to grow by 5.2 per cent y-o-y this year, driven by new subscriptions in new areas despite the increase in competition and price erosion.

The mobile market, which makes up 74 per cent of the total market, is forecast to increase by only 1.6 per cent y-o-y in 2023.

Nevertheless, Alfie opined that there is still a lack of differentiation in services offered by telcos.

"Increasingly, telcos are implementing new technologies and positioning themselves as a technology provider rather than a telecommunications provider.

"5G will continue to be the main focus in the next few years. Telcos should consider expanding their initiatives to innovate and monetise the technology,” said Alfie. - BERNAMA