PUTRAJAYA – A Singaporean company has been monopolising undersea cable repair works in local waters, said the Malaysian Shipowners’ Association (Masa), in defence of the Transport Ministry’s move to revoke the exemption for foreign ships to conduct such repairs.
Asean Cableship Pte Ltd and its vessels, Asean Explorer and Asean Restorer, had been conducting repair works prior to the exemption, but became a dominant player once the policy was implemented on April 1 last year, Masa chairman Datuk Abdul Hak Min told a press conference today.
“I think they have been conducting repairs since before that. But, whenever we have one of our ships (in our waters), we block a little bit. Then, after April 1, 2019 (when cabotage exemption began), this Singaporean company has been monopolising (cable repair works).
“To say we want to monopolise (cable repair works) is totally wrong. We’ve been monopolised by them,” said Hak.
Transport Minister Datuk Seri Wee Ka Siong has in recent days been the target of criticism from tech giants, such as Google and Facebook, as well as predecessor Anthony Loke, for removing the exemption, a move critics say will create a monopoly and affect internet speeds for households and businesses.
One of the tech titans was also quoted by business publication The Edge as saying it would review its cable investments in the country after a stakeholders’ meeting with Wee.
Between 40 and 50 ships are qualified to lay and repair underwater telecommunications cable globally.
Four of those vessels are owned by a Malaysian company, but they bear foreign flags due to said countries’ cabotage policies. That particular company has more than 40 years’ experience in laying undersea cables, said Hak.
He added that in Malaysia, there is one vessel capable of doing underwater cable repair or laying works, with another being registered in the country.
Masa’s intention is to not block foreign flags from repairing cables but prioritise local vessels, Hak said.
“We want to make sure they give first priority for Malaysian vessels but these vessels must also be competitive on their pricing. If their pricing is incorrect, the telecommunications company must tell them.
“We are not stopping foreign companies from working here. If there are no local ships here, maybe after two days, we can open it up for foreign vessels to repair the cables. I don’t think this will disrupt our internet connection.”
The Masa chairman added that, based on the group’s records, Asean Cableship took up to 48 days to repair an unsea cable without disrupting the country’s internet network.
On the economic and financial impact of telco giants pulling out of the country, Hak said such a situation is beyond Masa's power and it is not for the group to answer to. – The Vibes, December 2, 2020
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