KUALA LUMPUR (April 14): Seven ministers have been instructed during a Cabinet meeting to deliberate the impact of the cabotage policy exemption for submarine cable repairs on the local shipping industry as well as digital investments into Malaysia, said Khairy Jamaluddin today.

The Minister of Science, Technology and Innovation tweeted this following a Cabinet discussion on the issue today.

According to him, the ministers include Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali, Minister of Finance Tengku Datuk Seri Zafrul Abdul Aziz, Minister of Communications and Multimedia (KKMM) Datuk Saifuddin Abdullah, Minister of Transport Datuk Seri Dr Wee Ka Siong, Minister in the Economic Planning Unit Datuk Seri Mustapa Mohamed, Minister of Entrepreneur Development and Cooperatives Datuk Seri Dr Wan Junaidi Tuanku Jaafar, and Khairy himself.

The ministers are “to report back in two weeks with recommendations”, Khairy added.

The issue entered the spotlight following Wee’s decision to revoke a cabotage policy exemption that was put in place in 2019 by the previous administration on foreign vessels for undersea cable maintenance.

The revocation of the exemption caused international tech companies to voice concerns of potential delay of repair works on submarine cables, with one saying that it might review its future cable investments in Malaysia. Wee responded that foreign vessels can participate if local vessels are unable to do it or are too far away from the location.

The Edge Weekly reported in January 2021 that tech outfits Google, Facebook Inc, Microsoft Corp and Malaysia Internet Exchange were understood to have met with Khairy to help resolve the policy matter.

Wee’s predecessor Anthony Loke said in 2019 that the cabotage exemption was requested by telcos TIME dotCom Bhd and Telekom Malaysia Bhd, and supported by KKMM, citing delays of up to 27 days in the repair process due to undersupply. Malaysia Shipowners’ Association (MASA) meanwhile argued late last year that the cabotage exemption resulted in a monopoly by a Singapore company.

Earlier this month on April 3, Wee said the Ministry of Transport had provided a total of seven domestic shipping license (DSL) approvals involving two foreign vessels — Asean Explorer and Asean Restorer — to undertake undersea cable repair works.

Six applications were approved in three days, with the latest one approved in six days, Wee said in a Facebook post.

“Hence, there is no delay caused by MASA or MoT.

“Delays in bringing in foreign vessels is [due to] applicants having to wait in a long queue, with emphasis given to the management of Asean Explorer and Asean Restorer, which is Singtel, which prioritised themselves [in the use of the vessels],” he said, adding it is ridiculous to suggest that MoT caused the delay.