Malaysia

S’pore firm ‘monopolising’ undersea cable repairs: shipowners’ group

Malaysian Shipowners’ Association urges for local vessels to be given priority

Updated 5 years ago · Published on 02 Dec 2020 4:18PM

S’pore firm ‘monopolising’ undersea cable repairs: shipowners’ group
After April 1, last year, when the cabotage exemption began, a Singaporean company has been monopolising undersea cable repair works in Malaysian waters, says Masa chairman Datuk Abdul Hak Min. – ALIF OMAR/The Vibes pic, December 2, 2020

by Azril Annuar

PUTRAJAYA – A Singaporean company has been monopolising undersea cable repair works in local waters, said the Malaysian Shipowners’ Association (Masa), in defence of the Transport Ministry’s move to revoke the exemption for foreign ships to conduct such repairs.

Asean Cableship Pte Ltd and its vessels, Asean Explorer and Asean Restorer, had been conducting repair works prior to the exemption, but became a dominant player once the policy was implemented on April 1 last year, Masa chairman Datuk Abdul Hak Min told a press conference today.

“I think they have been conducting repairs since before that. But, whenever we have one of our ships (in our waters), we block a little bit. Then, after April 1, 2019 (when cabotage exemption began), this Singaporean company has been monopolising (cable repair works).

“To say we want to monopolise (cable repair works) is totally wrong. We’ve been monopolised by them,” said Hak.

Transport Minister Datuk Seri Wee Ka Siong has in recent days been the target of criticism from tech giants, such as Google and Facebook, as well as predecessor Anthony Loke, for removing the exemption, a move critics say will create a monopoly and affect internet speeds for households and businesses.

One of the tech titans was also quoted by business publication The Edge as saying it would review its cable investments in the country after a stakeholders’ meeting with Wee.

Between 40 and 50 ships are qualified to lay and repair underwater telecommunications cable globally.

Four of those vessels are owned by a Malaysian company, but they bear foreign flags due to said countries’ cabotage policies. That particular company has more than 40 years’ experience in laying undersea cables, said Hak.

He added that in Malaysia, there is one vessel capable of doing underwater cable repair or laying works, with another being registered in the country.

Masa’s intention is to not block foreign flags from repairing cables but prioritise local vessels, Hak said.

“We want to make sure they give first priority for Malaysian vessels but these vessels must also be competitive on their pricing. If their pricing is incorrect, the telecommunications company must tell them.

“We are not stopping foreign companies from working here. If there are no local ships here, maybe after two days, we can open it up for foreign vessels to repair the cables. I don’t think this will disrupt our internet connection.”

The Masa chairman added that, based on the group’s records, Asean Cableship took up to 48 days to repair an unsea cable without disrupting the country’s internet network.

On the economic and financial impact of telco giants pulling out of the country, Hak said such a situation is beyond Masa's power and it is not for the group to answer to. – The Vibes, December 2, 2020

Related News

Malaysia / 8mth

MCA: Leadership transition must carefully be managed to avoid any internal turmoil, says former party veep

Malaysia / 8mth

Ka Siong missed crucial chance to address MCA’s ‘existential crisis’ - says ex veep

Malaysia / 1y

MIC & MCA: The emergence of a third force in Malaysian politics?

Malaysia / 1y

MCA committed to contesting future elections, aims to regains seats - Wee

Malaysia / 2y

Something fishy: More leaders berate Rafizi as Padu deadline draws near

Malaysia / 2y

MCA polls: Wee wins big, Ti fails to retain vice-presidency

Spotlight

Malaysia

Private university CFO charged over alleged RM6.56m CBT

World

Unleashed 60kg dog in Hong Kong mauls poodle, bichon frise to death (video)

Malaysia

Three family members killed after Immigration truck runs red light

Malaysia

Woman, believed to be foreigner, allegedly causes disturbance at KLIA (video)

Opinion

Has DAP chosen the path to a slow death?

Malaysia

Three years of bullying at school puts 15-year-old at risk of hearing loss

By Alfian Z.M. Tahir

Malaysia

Police officer's wife cries, pleads for leniency after misusing disabled child's account

Malaysia

Organised cybergroups likely behind rise in racial hate on social media

You may be interested

Malaysia

Anwar backs One China policy, says Beijing can pursue reunification

By Alfian Z.M. Tahir

Malaysia

Dr Mahathir slams Netanyahu over opposition to Palestinian state

By Alfian Z.M. Tahir

Malaysia

Woman, believed to be foreigner, allegedly causes disturbance at KLIA (video)

Malaysia

Former investment bank CEO charged with RM139.8m fraud

Malaysia

Sarawak haze shuts 591 schools across 10 districts

Malaysia

Jana Wibawa witness: Muhyiddin never asked for RM1m Bersatu donation

Malaysia

Misunderstandings, financial factors among top causes of domestic violence - Minister

Malaysia

Warning lights are not a 'license' to ignore traffic laws – Bukit Aman