Guan Eng lauds cabotage exemption for foreign vessels, believes will boost mega digital investments
KUALA LUMPUR, May 31 — DAP national chairman Lim Guan Eng today hailed the Anwar Cabinet’s decision to reinstate the cabotage exemption for non-Malaysian vessels conducting undersea cable repairs, saying it will help recoup and recover digital investment.
The Bagan MP said Transport Minister Anthony Loke’s adoption of a progressive regulatory framework can promote more investments in the tech sector and accelerate the development of Malaysia’s digital infrastructure.
“This was evident with the billions of US dollars of digital investments from internet and digital giants, the latest being Google’s US$2 billion in investments in Selangor to develop its first data centre and a cloud facility.
“This is Google’s largest planned investment in the South-east Asian nation, according to Alphabet Inc Chief Financial Officer Ruth Porat,” Lim said in a statement.
The former finance minister said the cabotage exemption for specialised ships used to install and maintain undersea cables that form the backbone of the world’s internet infrastructure, is an important reform that will attract mega digital investments into Malaysia.
“Loke’s move, effective June 1 onwards, marks a reversal of his predecessor, PN’s Minister of Transport Datuk Seri Wee Ka Siong’s revocation of the policy in 2020.
“The cabotage policy exemption under Section 65U of the Merchant Shipping Ordinance applies to all cable-laying ships engaged in the installation, maintenance and repair of submarine telecommunication cable landed at any submarine cable landing centre in Malaysian waters.
“Wee had attracted brickbats for revoking Loke’s earlier decision to grant the exemption, which was seen as a disincentive for billions of ringgit of digital investments,” Lim said.
Yesterday, the Transport Ministry announced that 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 are exempt from the cabotage policy starting June 1.
The ministry said the exemption was made under Section 65U of the Merchant Shipping Ordinance 1952.
Loke signed a gazette last Wednesday aimed at boosting investments in internet technology infrastructure in Malaysia.
