Malaysia

Most undersea cable construction are private investments: Teo

Govt funds used for new towers in interior areas with no commercial value, minister says

Updated 3 years ago · Published on 05 Apr 2023 2:55PM

Most undersea cable construction are private investments: Teo
Responding to a question in the Dewan Negara today, Deputy Communications and Digital Minister Teo Nie Ching says the companies involved in undersea cable construction in the country view the installations as having commercial value and build them without relying on government funds. – Information Dept pic, April 5, 2023

KUALA LUMPUR – Most of the undersea cable construction in Malaysia do not involve government funds, but are implemented by the private sector using their own funds, said Deputy Communications and Digital Minister Teo Nie Ching.

She said the companies involved view the installation of the cables as having commercial value and on that basis, they are willing to build them without relying on government funds.

“The existing undersea cables including the basic East-West submarine cable system linking Mersing to the termination point in Kuching by Sacofa Sdn Bhd…were all through private funding.

“Only TM (Telekom Malaysia Bhd) made use of its own funds and some from MCMC (Malaysian Communications and Multimedia Commission) through the USP (universal service provision) programme,” she said.

Teo said this in response to a supplementary question from Senator Apandi Mohamad who wanted to know how much the government spent on the installation of the undersea cable system during the oral question-and-answer session in the Dewan Negara today.

She said government funds were instead used to look after the interior areas, which have no commercial value and where telco companies were not interested to invest in constructing new towers.

“To cater to the needs of all Malaysians, new towers are erected in the interior areas and this is funded by the government by using the USP funds,” she said. – Bernama, April 5, 2023

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