KUALA LUMPUR – Transport Minister Anthony Loke is scheduled to meet with representatives from multinational technology companies such as Facebook and Google next week to clarify Malaysia’s stance on cabotage policy restrictions for submarine cable repair as well as reassure foreign investors about Malaysia’s future policies.
Loke said these businesses, as well as investors, require policy clarity and the ministry intends to provide such clarity as well as certainty on policies to help them make more investment decisions in Malaysia.
“My role as the minister is to provide certainty and clarity of policies. I think companies just want certainty in terms of the way forward and policies, and we will hear them out too,” he said after witnessing the signing of a memorandum of understanding between the Malaysia Bunkering Association and Malaysia Shipowners’ Association here today.
He said submarine cable repair is a subsector issue within cabotage policy and is highly particular, and thus does not need to be handled at the industry level.
“What they (IT companies and investors) need is just for ships to be able to move quickly in order to make repairs. The ships should reach their destinations quickly and efficiently and that’s the only issue,” he said.
He said although the issue of undersea cable repair does not affect the maritime business as a whole, it is vital to the IT industry.
“We will listen to them and if there is a need, we will invite them,” he said.
Previously, it was reported that the Transport Ministry is working to reinstate exemptions granted to non-Malaysian vessels conducting undersea cable repairs in 2019.
According to EMIR Research, the loss of the cabotage exemption, which allows foreign vessels to conduct undersea cable repairs in Malaysian waters, may deter foreign investors from investing in Malaysian telecommunications and internet infrastructure.
Concerning undersea cable repairs in Malaysian waters, the research firm stated that the country currently lacks sufficient cable repair ships to support the capacity required for submarine cables invested in by over-the-top content providers such as Facebook and Google. – Bernama, May 5, 2023
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