KUALA LUMPUR – The decision to revoke the cabotage exemption for foreign-flagged ships repairing undersea cables does not prevent the employment of such vessels.
It mainly means helping and enabling Malaysian companies to bring cable ships and technology back home to boost the local industry, as well as stop the unnecessary outflow of foreign exchange, Malaysia Shipowners’ Association (Masa) chairman Datuk Abdul Hak Md Amin told Bernama.
He said the latest move by Transport Minister Datuk Seri Wee Ka Siong is important in building and developing the local industry, as Malaysian firms have the expertise and ability to provide security and protection to the strategic assets in the country’s waters.
“This is what we are trying to promote. Masa wants to protect the digital accessibility in Malaysia with local know-how to repair cables, and not relying 100% on foreign companies. Foreign cable ships can still work in Malaysian waters, but need to comply with domestic shipping licence exemption processes.”
The cabotage exemption for foreign vessels repairing undersea cables was granted by former transport minister Anthony Loke, and was requested by telecommunications companies such as TIME dotCom Bhd and Telekom Malaysia Bhd.
It was supported by the Communications and Multimedia Ministry, and aimed to speed up maintenance work as required.
The Transport Ministry has confirmed that it received memoranda from tech giants, namely Microsoft, Google, Facebook and Malaysia Internet Exchange, claiming that Wee’s decision will hamper Malaysia’s internet infrastructure, and saying they have turned to Prime Minister Tan Sri Muhyiddin Yassin for intervention.
Hak emphasised that the revocation is the right measure, as Malaysia’s neighbours have enforced the cabotage policy strictly for their long-term benefit.
“If the telcos feel that developing Malaysians is not important, then let’s open up everything. Why the need to have local companies like Maxis, TIME or Celcom? Why don’t they allow Singtel, Telkomtelstra, AT&T and the like to come in?”
He said claims by certain parties that a severed cable could bring down the entire nation’s data system are unsubstantiated, as this did not happen during a previous cable outage.
“There are a total of 19 submarine cables, with two new cables under way, so when a cable is cut, traffic is rerouted.
“There are two maintenance authorities in this region – the Southeast Asia and Indian Ocean Cable Maintenance Agreement, and the Asia-Pacific Marine Maintenance Service Agreement. Masa encourages competition between them, and at the same time, encourages its members to bring its cable ship to flag in Malaysia.”
He said the association supports the national cabotage policy, “which should be implemented completely, and not exempting certain areas, where in fact, the previous exemption only excluded the cable system that landed into Malaysia, but not cable systems in transit”.
“There are between 10,000km and 15,000km of domestic and international cables connecting Malaysia. So much so, that we need more local cable ships to support these cables.” – Bernama, November 24, 2020
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