Malaysia may permanently waive rules for foreign ships working on undersea cables

KUALA LUMPUR – Malaysia has decided to reverse an earlier decision and allow foreign vessels to repair undersea cables in its waters, Transport Minister Anthony Loke said on March 1, adding the move may be made permanent to encourage tech investments and support the digital economy.

The government had

revoked permission for international vessels from conducting such work

in 2020, citing the outflow of foreign funds via freight payments and the need to develop the domestic shipping industry.

Major tech companies including Facebook, Google, Microsoft and Amazon had previously

sought a reinstatement of the cabotage waiver

, due to potential delays in submarine cable repair and maintenance.

Such rules regulate shipping or trade activities in a country’s waters or airspace.

Mr Loke told reporters that the government had agreed to restore the exemption following discussions with international technology and telecommunications industry participants.

“We will do everything necessary to ensure (the industries) that there is certainty in terms of this policy... and to attract more international investment not only on undersea cables but also in data centres,” he said.

Mr Loke also announced other changes to Malaysia’s shipping rules, including reinstating its cabotage policy on vessels shipping cargo from the country’s peninsula to Sarawak state on Borneo island.

All local and foreign ships carrying out cargo services in Malaysian waters will also be required to apply for a domestic shipping licence due to national security concerns, he said, while adding that approval processes will be eased.

The new rules are expected to come into effect within the next two months, Mr Loke said. REUTERS