KUALA LUMPUR: The Transport Ministry has announced an exemption of the cabotage policy for all cable-laying ships engaged in the installation, maintenance and repair of submarine telecommunication cables.
In a statement today, its minister Anthony Loke, said the exemption was made under Section 65U of the Merchant Shipping Ordinance 1952.
He also said the gazette will take effect on June 1, adding that the exemption was aimed at boosting investments in internet technology infrastructure in Malaysia.
"Malaysian and international tech companies had, since 2020, voiced the need for the government to adopt a more progressive regulatory framework that can promote more investments in the tech sector.
"The unity government is committed to accelerating the development of Malaysia's digital infrastructure.
"The minister, in exercising the powers conferred by Section 65U of the Merchant Shipping Ordinance 1952, exempts 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 from the cabotage policy under subsection 65KA(1) of the Ordinance."
At the same time, the cabotage exemption for all ships ferrying cargo from any port in Sarawak to any port in Peninsular Malaysia, Labuan and Sabah and vice versa, at the request of the Sarawak government, was also revoked.
In March this year, Loke announced the government's plan to reinstate cabotage policy exemption for foreign vessels involved in undersea cable repairs.
The exemption of the cabotage policy, he had said, was necessary to attract more foreign investments to the data centre industry to boost the growth of the digital economy.
The cabotage policy was introduced in 1980 after amendments to the Merchant Shipping Ordinance 1952 to develop Malaysian ownership and local shipping in general.
Under Section 65L of the Ordinance, no ship shall engage in domestic shipping without a license issued by the Domestic Shipping Licensing Board.