KUALA LUMPUR, July 4 — The 2024 Auditor-General’s Report today revealed that from the 9th Malaysia Plan (9MP) to the 12th Malaysia Plan (12MP), seven fixed broadband infrastructure projects were implemented gradually under each development scheme.
The report said that out of the total approved projects, six infrastructure projects were completed during 9MP to 11MP as part of the National Broadband Initiative, with one project during 12MP under the Jendela plan.
“During 9MP to 11MP, the focus of developing fixed broadband infrastructure aimed to increase coverage to 95 per cent of populated areas, including projects like High-Speed Broadband (HSBB) and HSBB2 in urban areas, and Sub Urban Broadband (SUBB) and Broadband to General Population (BBGP) in rural areas,” the report said.
However, in 12MP, the focus shifted to providing fibre optic networks to 7.5 million premises under the Jendela plan, and PoP projects covering urban, suburban, and rural areas.
These projects’ scope includes laying submarine cables, constructing networks, distribution centres, fiber distribution hubs, and installing ports for internet connectivity to premises.
As of December 31, 2022, six out of seven projects were completed within the designated Malaysia Plan periods.
Among these, three were connectivity projects from 9MP and 10MP, while one 12MP project, PoP, is still under construction.
“Based on Project Monitoring System II data, the budget ceiling for PoP projects is RM4.649 billion, split into two phases. Phase 1 (2020-2022) involved constructing 630 school PoP and 47 Industrial PoP projects costing RM678.65 million, managed by three contractors.
“Phase 2 (2023-2025) included 3,693 PoP projects costing RM3.971 billion, with five different contractors, except for the central zone which retained the same contractor as Phase 1,” it said.
Audit findings from the Fibre Optics Management and Information Exchange report until December 31, 2022, show 275 PoP projects 40.6 per cent completed, while 402 projects (59.4 per cent) are delayed, granted an extension until August and October 2023 for completion.
The findings also indicate project delays primarily due to the approval processes for right of way and work permits from state authorities and local councils, taking between four to six months before project commencement, compared to the project’s total duration of 12 months.
Additionally, fees for permits and various other charges, along with the imposition of bond payments by road administrators, have affected project implementation.
These delays in project completion compared to the original schedule have impacted the timely expansion of broadband coverage and access, especially in rural areas.
As of December 31, 2022, telecommunications company-managed infrastructure projects have been fully completed, while projects managed by MCMC are still under construction, achieving an overall completion rate of 80 per cet.
“The progress of MCMC-managed projects has not reached 100 per cent due to challenges in securing tower construction sites and locations, lack of road access and electricity supply, shortage of skilled workers, and lengthy approval processes for work permits from state authorities and local councils.
As for the implementation of the 5G network, MCMC’s reports until December 31, 2023, show that overall 5G coverage reached 80.2 per cent in populated areas, exceeding the 80 per cent target set.
To prevent future recurrence of identified weaknesses, the report recommended for the Communication Ministry to take actions such as comprehensive planning for unused broadband networks, ensuring adherence to revenue-sharing clauses in project agreements, and enhancing coordination with stakeholders, particularly the education ministry, in Phase 2 PoP programme implementation.