In March, Loke Siew Fook announced the government’s decision to reinstate the cabotage exemption for foreign vessels carrying out undersea cable repairs in a move to attract foreign investors.
PETALING JAYA: The gazette for the order to reinstate the cabotage exemption for foreign vessels carrying out undersea cable repairs will take effect on June 1, says the transport ministry.
The ministry said minister Loke Siew Fook signed the gazette earlier today, exercising the powers conferred on him under Section 65U of the Merchant Shipping Ordinance 1952.
The gazette provides an exemption to all cable-laying ships engaged in the installation, maintenance and repair of submarine telecommunication cables landed at any centre in Malaysian waters from the cabotage policy under Section 65KA(1) of the Ordinance.
The ministry quoted Loke as saying that 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,” he said.
In March, Loke announced that the government had decided to reinstate the cabotage exemption for foreign vessels carrying out undersea cable repairs in a move intended to attract foreign investors.
He said the decision was aimed at convincing international IT companies and foreign investors of certainty in government policies.
In 2019, Loke, who helmed the transport ministry at the time, announced that to speed up the approval process, foreign vessels carrying out undersea cable repairs and maintenance work would be free from some of the usual cabotage requirements and fees.
However, the following year, the Perikatan Nasional-led government revoked this exemption.
The ministry said Loke also revoked the cabotage exemption for all ships ferrying cargo from any port in Sarawak to any port in the peninsula, Labuan and Sabah, and vice versa, effective June 1.
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