Cabotage policy puts MyDigital plan at risk, says Pikom

 

An exemption introduced under Pakatan Harapan allowing foreign vessels to carry out undersea cable repairs was recently removed by the government.

PETALING JAYA: The National Tech Association of Malaysia (Pikom) has joined the chorus of criticism against the revocation of the cabotage exemption, saying it will put a damper on Malaysia’s ambitions to develop a thriving digital economy.

Revoked in November last year, the decision made by the transport ministry has come under fire from politicians and the public, who argue it will make big technology players take their overseas investments to Malaysia’s regional neighbours.

In a statement, Pikom chairman Danny Lee said that while the MyDigital blueprint launched in February “provides a path forward in our digital journey,” the cabotage revocation is a major speed bump on the push to becoming a high-value-added economy and exporter of local technologies and digital solutions.

“This current cabotage policy will not resonate well with our digital aspiration, but rather hamper the progress,” said Lee.

“Malaysia risks losing its attractiveness as an investment destination for global tech companies. In addition to that, data centre investments are also making their way out of Malaysia, as repairs are now taking longer than they used to.”

The cabotage exemption has the potential to impact the wider community, Lee added, as connectivity has become integral to the lives of many.

“Malaysians rely on affordable, stable internet access in order to work, continue their education, connect with friends and family, and access essential goods and services like healthcare.

“Now is an especially bad time to make it more difficult for Malaysian internet service providers to repair critical internet infrastructure.”

In response to claims that the revocation of the exemption would help protect Malaysia’s data by limiting foreign vessel interaction with cables in the country’s waters, he said there were better alternatives available.

“Even if (data breaches) can happen, there are always easier ways to steal data than from the bottom of the ocean.

“We should enhance our cybersecurity readiness throughout the chain, including endpoint devices and the network, to ensure encrypted end-to-end security. In addition, what should be done is to raise investment in and focus on cybersecurity to enhance data security.” - FMT