Transport minister Anthony Loke has announced that all cable-laying ships involved in the installation, maintenance, and repair of submarine telecommunication cables at any submarine cable landing centre in Malaysian waters are exempt from the cabotage policy starting 1 June 2024. This exemption, made under Section 65U of the Merchant Shipping Ordinance 1952, aims to facilitate smoother operations for these specialised vessels and enhance the country’s telecommunication infrastructure.
Loke emphasised that since 2020, both Malaysian and international tech companies have urged the government to adopt a more progressive regulatory framework. These companies believe such changes are essential to attract more investments and foster growth in Malaysia’s technology sector. Notably, in 2021, Google, Facebook, and Microsoft had sent a letter to former prime minister Dato’ Sri Ismail Sabri Yaakob to discuss the reinstated cabotage policy by the Tan Sri Muhyiddin administration.
It should also be noted that during Loke’s initial tenure as transport minister in 2019 had allowed foreign ships to perform submarine cable repairs in Malaysian waters. However, the exemption was reversed in November 2020 by his successor, Ir. Dr. Wee Ka Siong, to protect the interests of the local shipping industry and national security.
Loke stated that the recently signed gazette demonstrates the current administration’s focus on accelerating the development of the nation’s digital infrastructure. Additionally, the government has revoked the cabotage policy exemption for all cargo ships travelling between ports in Sarawak and those in Peninsular Malaysia, Labuan, and Sabah. This change was made at the request of the Sarawak government, indicating a tailored approach to cabotage policies that balance regional needs and priorities.
(Source: Bernama)
