The government’s decision to appoint royalty-linked U Mobile as the second operator of Malaysia’s 5G network last week is coming under scrutiny.

Maxis - which was also bidding to become the second 5G operator - said in a statement yesterday that it will be engaging the Malaysian Communication and Multimedia Commission (MCMC) to find out why it was passed over.

“We will engage with MCMC to understand the rationale for their decision and we will consider our options after discussions with all stakeholders,” it said,

Free Malaysia Today also cited industry experts as asking the government to spell out why it had chosen U Mobile.

The MCMC did not go into detail when announcing U Mobile as the second 5G network operator last Friday, beyond that it had “rigorously undertaken processes encompassing detailed deliberations on technical and commercial aspects, among others” in making the decision.

It also said that U Mobile can collaborate with other mobile network operators in rolling out its network.

According to company records pulled from the Companies Commission of Malaysia today, one of the telecommunication firm’s most notable shareholders is Sultan Ibrahim Sultan Iskandar - the current Yang di-Pertuan Agong.

Sultan Ibrahim is the company’s second-largest shareholder with a 22.3 percent stake.

The biggest shareholder is Singapore-based Straits Mobile Investments Pte Ltd with a 48.3 percent stake.

Following the MCMC’s announcement on Friday, U Mobile said that it would reduce its foreign shareholdings down to 20 percent.

Tycoon and U Mobile chairperson Vincent Tan no longer has a direct stake in the company according to the records although other companies he is tied to do have shares, namely U Telemedia Sdn Bhd (7.3 percent) and Berjaya Infrastructure Sdn Bhd (two percent).