Starlink just started offering its services a couple of days ago after getting their licence to operate from the government. Did you know that the company is wholly owned by Starlink, with no Malaysian partnership/ownership? This is because the government has granted them a rare exemption.
According to Tech in Asia, since 2005, only four firms, including Starlink, have received this privilege. The satellite-internet company obtained two licenses—the network facilities provider (NFP) individual licence and the network service provider (NSP) individual licence.
NFPs refer to entities that own or provide network infrastructure like towers and satellite stations, while NSPs facilitate connectivity across different networks.
According to Malaysian law, foreign ownership in a licencee is typically limited to 49%, unless an exemption is granted by the minister responsible—in this case, Communications and Digital Minister Fahmi Fadzil.
However, the Malaysian Communications and Multimedia Commission (MCMC) stated that SpaceX retains complete ownership of the company to which these licences were granted. SpaceX is the aerospace company that created and operates Starlink.
Starlink Internet Services Malaysia is wholly owned by Starlink Holdings Netherland, as per the Malaysian companies’ database.
MCMC revealed that, apart from Starlink, only three other companies had received such an exemption since 2005. These firms are NTT MSC (in 2005 and 2010), AT&T Worldwide Network Services (in 2012), and BT Systems (in 2014).
MCMC said that the decision to grant Starlink the exemption was made after evaluating the “value and benefits” that the satellite-internet firm brings. The commission also highlighted that this case resembles the other licencees that were granted exemptions—these are “companies with a global footprint” that have full foreign ownership.
In considering the exemption, various policy aspects were taken into account, including a review of Starlink’s Malaysia Digital (a range of perks for multinational or local tech companies, encompassing tax incentives and grants) status, Malaysia’s commitments in any free-trade agreement with the applicant’s country of origin, and the direct and indirect benefits that the licensee can offer to Malaysia. The entire process involved other relevant agencies and ministries, as per MCMC’s statement.
