Malaysia

Cabotage policy has dire consequences for tech investments, warns Pikom

Covid-19 has greatly increased Malaysians’ reliance on internet, so don’t put their access at risk, association chairman urges

Updated 2 years ago · Published on 23 Apr 2021 4:10PM

Cabotage policy has dire consequences for tech investments, warns Pikom
Submarine cables are the ‘global backbone’ of the internet and play a key role in Malaysia’s economy, says the Pikom chief. – Quora Twitter pic, April 23, 2021

KUALA LUMPUR – The National Tech Association of Malaysia (Pikom) has urged the government to provide a cabotage exemption for submarine cable installation and repairs.

Chairman Danny Lee, in a statement, said there are concerns that the cabotage policy, which prevents foreign ships from conducting work related to submarine cable deployment and repairs, will have dire consequences for tech investments.

“We are already beginning to see some multinational tech companies giving Malaysia a miss, and others that are here are also moving elsewhere.”

He said submarine cables are the “global backbone” of the internet and play a key role in Malaysia’s economy.

“The cabotage exemption is key to ensuring the speedy repair of damaged submarine cables, thereby preserving internet stability, speed and affordability.”

He said access to the internet is more critical than ever in light of movement curbs imposed to curb Covid-19, with Malaysians relying on it to work, learn, connect with family and friends, and obtain healthcare and other essential services.

“Now is an especially bad time to put this access at risk by making it more difficult for Malaysian internet service providers to repair critical internet infrastructure.”

He added that the cabotage policy does not resonate well with the country’s digital aspirations.

On data security, Lee said enhancing cybersecurity readiness throughout the chain is the right solution.

According to DataReportal, they are 27.43 million internet uses in the country, an increase of 2.8% from 2020 to this year, with internet penetration at 84.2%. – Bernama, April 23, 2021

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