1-3-2024 (KUALA LUMPUR) Malaysia announced the reinstatement of an exemption to its cabotage policy, allowing foreign vessels to conduct repairs on undersea cables within its waters, as confirmed by Transport Minister Anthony Loke. Additionally, the government is actively considering making this exemption a permanent fixture.
Cabotage rules serve to regulate shipping activities within a country’s maritime boundaries.
In 2020, Malaysia had revoked a previously granted exemption from the cabotage policy, which had permitted foreign vessels to engage in submarine cable repairs and maintenance work.
The reversal led to notable tech giants such as Facebook, Google, Microsoft, and Amazon advocating for the reinstatement of the waiver. They argued that without the exemption, the duration of cable repair processes would be extended.
Transport Minister Loke informed reporters that the decision to reintroduce the exemption followed comprehensive discussions with major industry stakeholders. Furthermore, there is a possibility that the government will actively work towards establishing a permanent policy for such exemptions.
Loke emphasized the significance of this step, stating, “This is important to attract more foreign investment in the data centre industry and to accelerate the growth of the digital economy.”
