Tun Daim Zainuddin (left) speaks while Deputy Defence Minister Liew Chin Tong looks on during the inaugural Perwira dialogue by the Ministry of Defence in Kuala Lumpur January 22, 2019. — Picture by Hari Anggara

KUALA LUMPUR, Jan 22 — Malaysia would do well to be wary of China’s 5G technology, Tun Daim Zainuddin said today as some Western nations — suspecting espionage — ban equipment made by telecommunications giant Huawei.

The federal government adviser added that major technological advancements have further disrupted human life and had implications on international relations.

“And there is good reason to fear the exponential rise of China’s 5G technology,” Daim said in a speech at the inaugural Perwira dialogue by the Ministry of Defence here.

“I’ve discussed previously issues of territorial sovereignty. But today, we also face an encroachment on ‘digital sovereignty’. While the speed of transmission and storage of information has greatly improved our daily lives, we need to stop and question the price we are paying for this convenience.”

Daim said the information captured was not merely what one posted on social media, but that everyday devices could also retain data on “what we do, where we go, what we buy, and what we say”.

“What are the security, defence, privacy, and strategic implications of China’s undoubtable leadership in this field?” he questioned.

At a joint press conference later with Daim and Chief of the Defence Forces Tan Sri Zulkifli Zainal Abidin, Defence Minister Mohamad Sabu said Malaysia would first study the matter, when asked if Malaysia would consider banning Huawei from developing 5G infrastructure.

“We’re expanding our cyber technology now,” he said. “So we’ll consider to improve our capabilities on 5G and study it.”

Zulkifli said: “Anything good, we’ll take it. But anything that will undermine our security and sovereignty, we’ll say no. It’s still early for us to jump on the bandwagon. We have got to study.”

Australia and New Zealand have reportedly blocked local firms from using Huawei technology for 5G wireless internet, while the United Kingdom, Germany, and Canada are considering whether to block the Chinese tech company’s products from their 5G infrastructure.

United States president Donald Trump will reportedly consider an executive order to ban American operators from using Huawei equipment, as the US claims the company assists Chinese state surveillance.

Huawei has reportedly denied these allegations, with founder Ren Zhengfei telling Chinese state broadcaster CCTV last Sunday that the West would be foolish not to buy Huawei’s “world class” wireless and 5G products.

Canada’s ambassador to the US David MacNaughton told Canadian newspaper Globe and Mail in an interview published today that the US would formally seek to extradite from Canada Huawei executive Meng Wanzhou, daughter of Huawei founder Ren. She was arrested on December 1 in Vancouver at US’ request for allegedly violating American sanctions on Iran.

Daim also stressed today that the Malaysian government’s decision to review the China-backed East Coast Rail Link (ECRL) project had “nothing to do with China or the US”.

He said Putrajaya often made “pro-world and “pro-Malaysia statements”.

“For instance, we are opposed to the US trade war on China, and want to see a fair rules-based international trading system. We believe that the economic growth of China is important to the global economy.

“We believe that Chinese markets should be more open and private enterprise should be better represented in its economy. We might err on the side of better intellectual property protection and stand against the use of technology to threaten states,” said Daim.

Daim, a close aide of Prime Minister Tun Dr Mahathir Mohamad, said these were not declarations of support for either the US or China, but “self-evident economic truths and statements that serve our own national interests.”