In light of repeated appeals from global technology companies, the cabinet has instructed six ministries to investigate the effect of the country’s cabotage policy on the digital and shipping industries.
Science, Technology and Innovation Minister Khairy Jamaluddin (above) said they have 14 days to present their recommendations to the cabinet.
“Cabotage policy exemption for submarine cable repairs was discussed in cabinet today.
“Ministers of the International Trade and Industry Ministry, Finance Ministry, Communications and Multimedia Ministry, Transport Ministry, the Economic Planning Unit, the Entrepreneurship Development and Cooperatives Ministry and the Science, Technology and Industry Ministry (have been) instructed to deliberate (its) impact on digital investments and (the) local shipping industry.
“To report back in two weeks with recommendations,” he tweeted this afternoon.
The Pakatan Harapan administration exempted foreign ships from Malaysia’s cabotage policy back in 2019 to shorten the time needed to repair submarine internet cables.
This exemption was revoked in November 2020 by Transport Minister Wee Ka Siong.
Technology companies like Google, Facebook, Amazon and Microsoft have since written to Prime Minister Muhyiddin Yassin twice, urging Putrajaya to reinstate the exemption.
They contend that the cabotage policy hampered Malaysia’s appeal as an investment destination for technology. It has also impeded Malaysian people and businesses that rely on the internet, they said.
The firms further argued that the policy violated the Malaysia Digital Economy Blueprint (MyDigital) which seeks to attract more international submarine cables to the country.
Wee has repeatedly defended the cabotage policy, saying it will help build domestic capacity and reduce capital outflow.
Despite the policy, the minister said some foreign ships continue to be granted “swift” exemptions, thus resulting in little delay with submarine cable repairs.
However, technology companies have warned that the cabotage has created a monopoly for only one Malaysian company - the Optic Marine Group - to undertake submarine cable repairs. - Mkini
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