The European Union (EU) and the United States have warned Malaysia of national security risks if it uses Huawei's 5G equipment. Huawei is among the companies bidding for their 5G equipment to be used after the Malaysian government wants to review the RM 11 billion contract awarded to Ericsson for DNB equipment.
A warning was sent to the Malaysian government in April with Huawei's 5G equipment allegedly not only posing a risk to national security but also to foreign investment in Malaysia. Previously it was heard that Malaysia's second 5G network will be announced to avoid monopoly by DNB. But the announcement was reportedly canceled at the last minute without any reason being given.
5G equipment was widely tested in Malaysia in 2019 and their 4G equipment also became one of the main backbones of the country's cellular telecommunications. After being listed as an entity by the United States, their equipment was banned in the United States, the UK, Australia, Japan and New Zealand because it was alleged that it could be used for espionage purposes by the Chinese government. This claim was denied by Huawei with a lawsuit filed but the case has not been heard until now.