Business

Tech titans seek meeting with Ismail Sabri on cabotage policy

Facebook, Google, Microsoft, Amazon want foreign vessels to be allowed to repair undersea cables in Malaysian waters

Updated 2 years ago · Published on 04 Sep 2021 6:10PM

Tech titans seek meeting with Ismail Sabri on cabotage policy
Facebook is among the tech giants that sent a letter on Wednesday to the prime minister’s office to discuss Malaysia’s cabotage policy. – Reuters pic, September 4, 2021

KUALA LUMPUR – Facebook, Google, Microsoft and Amazon are seeking to meet Prime Minister Datuk Seri Ismail Sabri Yaakob to ask that foreign vessels be allowed to repair undersea cables in Malaysian waters, said a Google spokesman today.

The tech giants sent a letter on Wednesday to Ismail Sabri’s office to discuss Malaysia’s cabotage policy, seeking the reinstatement of an exemption revoked last year under the previous government, said the spokesman.

Cabotage rules regulate activities in a country’s waters.

The tech giants are being represented by Malaysia’s national internet exchange body, the Malaysia Internet Exchange (MyIX), which is taking the lead in engaging with the government.

MyIX chairman Chiew Kok Hin said the situation would be different if the domestic industry was more developed, with several companies having the required cable repair capabilities.

“Where’s the harm in allowing tech giants to continue using foreign vessels for repair works while facilitating the transfer of knowledge so the local industry can develop?” Chiew told Reuters via email, adding that there is only one Malaysian company in the industry, and it lacks the capability.

Facebook, Microsoft and Amazon did not immediately respond to Reuters’ queries on the letter, nor did the Prime Minister’s Office or Transport Ministry.

The ministry last November overturned the exemption granted in 2019 allowing non-Malaysian ships to carry out repairs to submarine cables. The tech giants also wrote to then prime minister Tan Sri Muhyiddin Yassin seeking to reinstate the waiver.

Ismail Sabri took over as prime minister two weeks ago after Muhyiddin lost his parliamentary majority.

The tech groups said they are “very concerned” about last year’s decision.

“This exemption had ensured that submarine cable repair works could be conducted efficiently within a short time frame, thus minimising the duration and economic impact of cable disruptions.”

Reuters does not have details on when and how the cables were damaged, or what impact the damage has had on communications, but MyIX said 98% of internet traffic runs on subsea cables. – Reuters, September 4, 2021

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