By Chester Tay

Malaysia's government canceled the award of 5G network spectrum for the 700 MHz, 900 MHz and 2600 MHz band frequencies to five local telecommunication companies.

Communication and Multimedia Minister Saifuddin Abdullah said Wednesday that the cancellation was due to technical and regulatory issues.

Mr. Saifuddin said that in order to ensure a transparent process in awarding these spectrums, he directed the chairman of the Malaysian Communications and Multimedia Commission to cancel an earlier ministerial directive for the allocation and review the decision.

Mr. Saifuddin on May 15 signed a directive to award these spectrum bands to Telekom Malaysia Bhd., DiGi.Com Bhd., Maxis Bhd., Axiata Group Bhd. and Altel Communications Sdn. Bhd.

However, the moved raised questions on whether the award was done through open tender or direct negotiation. 



  Write to Chester Tay at chester.tay@wsj.com