[UPDATED] Why treat capable local firms like adopted kids, Ka Siong says of cabotage issue

KUALA LUMPUR – The government’s decision to revoke the cabotage exemption for foreign ships repairing undersea cables was made in the interest of local players, Transport Minister Datuk Seri Wee Ka Siong told the Dewan Rakyat today.

Wee (BN-Ayer Hitam) said it makes no sense for the country to prioritise foreign companies for such work when local ones are just as capable.

Some Malaysian shipping firms are carrying out similar work in foreign waters, but have not been given the privilege in their own country, he said.

“We have the ships and expertise, and are able to repair cables within 10 days. So, why are they (local companies) being treated like adopted children?” he said in his winding-up speech.

He was responding to claims by global tech giants Microsoft, Google and Facebook yesterday that the move to revoke the exemption will affect Malaysia’s internet quality, a matter previously raised in the House by Anthony Loke (PH-Seremban).

Pakatan Harapan implemented the exemption when Loke was transport minister, as it quickens the repair time from 27 days to 14, helping mitigate internet disruptions.

Wee said Malaysia now has 19 undersea internet cables, meaning connections can be rerouted should there be a failure with any one of them.

He said revoking the exemption does not mean foreign shipping companies are not allowed to conduct repairs here, as they will be given permission should local firms be unable to complete the work.

“If there is any cable damage, we will give a certain amount of time to our local companies. And if they can’t complete it, or do not have the expertise, then we will open the room to others.”

Loke and Gobind Singh Deo (PH-Puchong) said the very reason PH had approved the exemption was because Malaysian companies lacked the expertise and vessels to undertake repairs.

To this, Wee maintained that local firms have the capability to conduct the work.

To ensure a quicker response and shorter repair time, he said, the Transport Ministry has developed an electronic domestic shipping licence system, allowing for a faster processing time.

He added that the decision to revoke the exemption was made after two rounds of meetings with stakeholders, including the Malaysia Shipowners’ Association, in September and last month.

“As such, with the powers granted to me as minister under Section 65(U) of the Merchant Shipping Ordinance 1952, I approved the revocation of the exemption effective November 15.”

Other than prioritising local firms, he said, the move is also to protect national security and sovereignty by reducing the operations of foreign ships in Malaysian waters.

“We also want to reduce our foreign cash outflow in paying for the foreign freights, reduce our reliance on foreign ships, build domestic shipping capacities, and increase our technical expertise.” – The Vibes, November 24, 2020