KUALA LUMPUR – Four global tech giants are appealing to newly minted Prime Minister Datuk Seri Ismail Sabri Yaakob to reinstate the cabotage exemption policy that governs undersea internet cable repairs.
In a September 1 letter sighted by The Vibes, the four companies – Amazon, Microsoft, Google and Facebook – and the Malaysia Internet Exchange (MyIX) told Ismail Sabri that all it takes are simple changes to the country’s infrastructure to reap greater economic benefits.
“(The cabotage exemption) had (previously) 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,” said the firms.
“We respectfully propose that the government reinstates the cabotage exemption policy with immediate effect.”
By reinstating the exemption, they said, it would “send a strong message about the government’s commitment to realising the MyDigital agenda”.
MyDigital is the national digital economy policy. Among its goals is attracting more international submarine cable landings to Malaysia to expand global connectivity, aiming to have the highest number of such cables in Southeast Asia by 2025.
We strongly believe that this policy realignment is a ‘low-hanging fruit’ that will deliver considerable economic benefits to the nation. Such decisive action would be embraced by the rakyat, who recognise the tangible economic benefits that they stand to benefit from with increased connectivity and more reliable digital services.”
The reversal of the cabotage exemption policy by the Perikatan Nasional government on November 13 last year was among the pain points for tech stakeholders.
Then transport minister Datuk Seri Wee Ka Siong undid the policy put in place by his predecessor Anthony Loke that players said sped up undersea cable repairs.
Wee’s decision drew flak, and he was blamed for the country’s missed opportunities in terms of attracting cable landings by the likes of Facebook because it favoured a single company – the Optic Marine Services (OMS) group – and the Malaysia Shipowners’ Association (Masa).
Sighted correspondences with government agencies showed that there had been concerns about OMS’ track record in performing repairs, among them the lack of proper equipment, including vessels.
Tech giants such as Facebook and Google prefer a Dynamic Position 2 (DP2) cable repair ship.
OMS recently acquired the CS Lodbrog vessel that can perform undersea cable repairs and maintenance. It has another Malaysian-flagged vessel, the Cable Orchestra (previously the Fu Xing), a barge that has done some repairs in local waters.
Masa, on the other hand, has the right to jam applications in favour of Malaysian-flagged ships, therefore delaying repairs.
Citing sources, The Vibes reported that Wee’s policy was among the reasons investors raised when Malaysia was exempted from Facebook’s latest Apricot loop, which included other Southeast Asian countries like Singapore and Indonesia.
Under Ismail Sabri’s government, Wee returns as transport minister, with insiders telling The Vibes that it may not bode well for the matter, “but we’ll wait and see since we do have to be objective, even if it is the same person we’ll be dealing with”.
This is not the first time the tech giants and MyIX have written to the prime minister. Previously they wrote to Ismail Sabri’s predecessor Tan Sri Muhyiddin Yassin on November 23 last year, but nothing substantial happened. – The Vibes, September 6, 2021
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