Malaysia telco companies to launch federated network service

Malaysia’s leading mobile operators, CelcomDigi Berhad, Maxis, U Mobile, Telekom Malaysia (TM) and YTL Communications unveiled plans to launch a new federated network service for online businesses to help them combat fraud and digital identity theft, through the GSMA Open Gateway initiative.

With increasing number of fraud and digital identity theft cases in Malaysia, local mobile operators have unveiled plans to launch a new federated network service for online businesses to help them combat fraud and digital identity theft. The local mobile operators, which includes CelcomDigi Berhad, Maxis, U Mobile, Telekom Malaysia (TM) and YTL Communications will offer the service through the GSMA Open Gateway initiative.

According to reports, Malaysia suffered a staggering RM54.02 billion in losses due to scams, underscoring the urgent need for stronger fraud prevention measures. In the first quarter of 2025, over 12,000 cases of fraud and scams were reported in the nation as well.

While the government has already launched more initiatives to deal with the situation, such as the establishment of the national scam center, the mobile operators are looking to play their part in reducing the number of fraud and online scam cases.

The new federated network service, which is targeted at online businesses, will enable enterprise enterprise developers at banks and online retailers with federated access to a service called Number Verification API (Application Programmable Interface). Federated Open Gateway helps developers build a service that can work with every participating operator, while allowing each operator to keep control of its data, policy and revenue. The software provides an interface, interoperability and cross-market coverage, so companies can easily connect their services to the rich, intelligent functionality that mobile operator networks can provide.

The mobile operators are ready to roll out API-enabled services, starting with the Number Verification API for enterprises and ecosystem partners. Developers will be able to use Number Verification to verify a customer’s mobile number to improve strong authentication and user experience. This API is a groundbreaking innovation and a potentially more secure replacement for SMS OTPs (One-Time Passwords).

Specifically, it allows businesses to verify a mobile user’s identity by matching their phone number against real-time network data to protect Malaysians against digital scams, simultaneously ensuring a seamless user experience.

The Malaysian initiative forms part of the global GSMA Open Gateway programme, which now includes more than 79 mobile operator groups representing 291 networks and nearly 80% of mobile connections worldwide.

According to Julian Gorman, Head of Asia Pacific, GSMA, online scams and fraud are a growing concern for everyone across the ASEAN region and unless tackled properly, could erode public trust in the digital economy.

“We commend this proactive initiative by Malaysia’s leading operators, which is a milestone for the GSMA Open Gateway programme. By providing banks and online commerce sites with standardized, seamless access to the rich mobile functionality available in networks, we can help accelerate the industry’s efforts to tackle online crime,” Gorman said.

A unified approach to tackle fraud and scams

Albern Murty, CelcomDigi’s Acting CEO believes the collaboration is a technological milestone that represents how Malaysia’s operators can collectively lead in shaping a trusted and inclusive digital future. He said it marks a pivotal step towards building a safer, seamless digital ecosystem for businesses and consumers – one that protects Malaysians from scams, inspires confidence in digital services, and fuels innovation across ASEAN.

“We are pleased to join forces with industry peers in pioneering secure, API-driven solutions that strengthen trust and open new pathways for the region’s digital economy to grow,” he added.

For Goh Seow Eng, Chief Executive Officer of Maxis, as an early supporter of the GSMA Open Gateway initiative, Maxis has been a key driver in the adoption of telco APIs in Malaysia.

“We have already demonstrated the power of the Number Verification API to combat digital fraud through two key initiatives: our Mobile Identity solution for Malaysian enterprises, and a landmark regional collaboration with operators in Thailand and Singapore. Building on this foundation, we are fully committed to this industry-wide collaboration to accelerate API-driven innovation, creating a more seamless mobile experience and building a more secure digital Malaysia for everyone,” said Goh.

Meanwhile, Neil Tomkinson, Chief Information Officer of U Mobile, said U Mobile is committed to enabling safer digital spaces for all Malaysians to thrive and reap the benefits of next generation technologies. Apart from being the first telco in Malaysia to launch Open Gateway developer portal with two GSMA-certified APIs, Tomkinson said U Mobile is also proud to also be part of the federated access launch of Number Verification API with industry peers.

“We believe this latest initiative is key to combating digital scam and fraud, as multi-party engagement, information sharing, as well as strategic policy enforcement will definitely enhance customer experience as well as safety online,” Tomkinson added.

Also commenting on the initiative is Amar Huzaimi Md Deris, TM Group Chief Executive Officer. Huzaimi believes that through close partnership with GSMA and other telcos, TM will ensure a seamless and secure experience for enterprises in Malaysia and across our global customer base through federated access.

“This is a key step in our journey to provide trusted, sovereign and secure digital solutions, protecting businesses and consumers from fraud while powering growth in the digital economy,” Huzaimi said.

YTL Communications’ Chief Executive Officer, Wing K. Lee added, “As a champion of Malaysia’s digital future, we are committed to building a trusted digital economy—from our class-leading AI Cloud infrastructure to pioneering Malaysia’s first sovereign LLM, ILMU, which powers Ryt, our AI-native digital bank. Our participation in the GSMA Open Gateway Programme will accelerate these investments and enable SMEs and enterprises alike to thrive in an inclusive, secure, and innovation-driven digital ecosystem.”

The initiative was announced at the GSMA Digital Nation Summit Kuala Lumpur (ASEAN Edition).

At the summit, GSMA also unveiled a new report that calls on governments and industries to close critical policy, infrastructure and skills gaps to deliver on ASEAN’s digital ambitions. The report sets out three priorities to accelerate progress: boosting investment in 5G, fiber and cloud infrastructure; harmonizing data, trade and cyber-security frameworks to enable seamless cross-border services; and strengthening regional and international cooperation to share expertise and build capacity.

“ASEAN has already delivered a five-fold expansion in economic output this century, yet our Digital Nations research shows that progress is uneven. Singapore leads the 2025 ASEAN digital readiness index, with scores across the region showing a broad range of preparedness levels. ASEAN has advanced in digital adoption, but gaps in readiness, regulation, and skills remain. Member states should strengthen digital ecosystems by addressing these challenges,” added Gorman.