US and EU representatives in Malaysia are lobbying for Ericson in order to remove Huawei from the 5G network infrastructure development of the country. Also feeding fears to the Malaysian government in order to outcast the Chinese tech maker.
FT reports that Huawei EU and US have warned Malaysia of risks to national security and a threat to pull foreign investment. The latest warning comes amid Malaysia has reviewed 5G rollout and giving Huawei an opportunity to become a core part of the infrastructure.
What’s the matter?
The review includes Ericsson’s worth RM 11 billion (about $2.5 billion) to build a 5G network inside the country. This information is allegedly mentioned in a letter seen by the people related to the matter.
Ericson was chosen over Huawei and Nokia in the open tender process but it’s possible that Huawei may have offered a better deal to the Malaysian government to initiate a review. Afterward, the review allowed Huawei to come into the discussion.
This entire scenario has triggered eyebrow-raising among the US and EU governments to lobby for the European telecom equipment maker.
EU and US:
“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,” said Brian McFeeters, US ambassador to Malaysia.
On the other hand, Michalis Rokas, Ambassador and head of the EU delegation to Malaysia said that any change in the tender would send a negative signal and violate the terms of the open tender announced previously. He also reminded Malaysia of the investment that EU companies have put inside the country around 25 billion euros.
On a further note, the EU ambassador said that the Ericons won’t be affected by the decision but likely to affect the value the attractiveness of Malaysia as a business destination for EU investors.
Yes, these are clear threats to Malaysia coming from two of the biggest economic section of the world. Meanwhile, you should know that Malaysia has not finalized its decision on the 5G network infrastructure development for the moment. However, a final move could come by this year.