Malaysia, as announced by its transport minister, has opted to reverse a prior decision and permit foreign vessels to undertake the repair of undersea cables within its waters.
The minister stated that this adjustment might become a permanent measure aimed at fostering technological investments and bolstering the digital economy, according to Reuters.
In 2020, the government had withdrawn the authorisation for international vessels to engage in such activities, citing concerns about the outflow of foreign funds through freight payments and the imperative to advance the domestic shipping industry.
Prominent technology firms such as Facebook, Google, Microsoft, and Amazon had advocated for the reinstatement of the cabotage waiver due to potential disruptions in the repair and maintenance of submarine cables. Cabotage rules regulate shipping and trade activities within a country’s waters or airspace.
Transport Minister Anthony Loke informed that after consultations with international technology and telecommunications industry stakeholders, the government had decided to reinstate the exemption.
Loke emphasised the commitment to providing certainty in terms of this policy, aiming to attract more international investment not only in undersea cables but also in data centres.
