30-5-2024 (KUALA LUMPUR) In a move aimed at bolstering Malaysia’s digital infrastructure and attracting investments in the technology sector, the government has announced an exemption from the cabotage policy for all cable-laying ships engaged in the installation, maintenance, and repair of submarine telecommunication cables landed at any submarine cable landing centre in Malaysian waters, effective June 1.
The Transport Ministry, in a statement released on Thursday (May 30), revealed that Transport Minister Anthony Loke signed a gazette on Wednesday (May 29), granting the exemption under Section 65U of the Merchant Shipping Ordinance 1952. This decision is seen as a proactive step towards creating a more progressive regulatory framework that can promote increased investments in Malaysia’s internet technology infrastructure.
Loke acknowledged that Malaysian and international tech companies have been voicing the need for the government to adopt more progressive policies to encourage investments in the sector since 2020. “The unity government is committed to accelerating the development of Malaysia’s digital infrastructure,” he stated, emphasizing the administration’s dedication to fostering a conducive environment for technological advancements.
In a related development, the government has revoked the cabotage policy exemption for all ships carrying cargo from any port in Sarawak to any port in Peninsular Malaysia, Labuan, and Sabah, and vice versa. This decision was made at the request of the Sarawak government, underscoring the federal administration’s commitment to collaborative policymaking and addressing the unique needs of individual states.
The exemption for submarine cable ships is expected to facilitate the efficient installation, maintenance, and repair of vital telecommunication infrastructure, enabling Malaysia to enhance its internet connectivity and digital capabilities. This move is seen as a crucial step towards attracting foreign direct investment in the technology sector and positioning the country as a regional hub for digital innovation.
