KUALA LUMPUR – Foreign vessels involved in undersea cable repair work are once again exempted from Malaysia’s cabotage policy, said Transport Minister Anthony Loke.
Announcing the cabinet’s decision today, Loke said the reinstatement of the exemption was to boost the growth of the digital economy and was made after engagement sessions with international tech giants over the course of several months.
“This move is vital to attract more international investment in the data centre industry, and boost the nation’s digital economy growth,” he said at the ministry today.
The reinstatement marks a return of the exemption Loke had first granted to non-Malaysian vessels conducting undersea cable repairs during his first tenure as transport minister, in 2019, during the Pakatan Harapan government.
The exemption to foreign vessels was because Malaysia did not have the necessary expertise and ships to do such work.
However, Loke’s successor, Datuk Seri Wee Ka Siong, revoked the cabotage exemption in 2020 when he became transport minister.
The cabinet has also decided to reinstate cabotage for foreign cargo ships from the peninsula to Sarawak, upon the request of the state government in support of local shipping industry growth.
However, the cabotage exemption is maintained for foreign cargo ships from the peninsula to Sabah and Labuan, Loke added.
Meanwhile, Loke said all foreign ships can now provide direct call services from any international port to any port in Sabah, Sarawak, and Labuan, correcting an assumption that these vessels cannot provide such services to East Malaysia.
“(The assumption) is inaccurate. Although the cabotage policy is reinstated in Sarawak, any foreign vessel can directly go to (the state),” he said.
“The policy is only applicable between two ports in Malaysia – Port Klang and Sarawak. (Cargo) is only for local firms, foreign vessels are not allowed (to travel between the two ports),”
It is also mandatory for all foreign and domestic cargo service ships to apply for a Domestic Shipping Licence (DSL) to carry out activities in local waters, for safety concerns.
“When the (cabotage) policy was exempted before this, it also applied to foreign ships who wish to apply for DSL. This made it difficult for authorities to know the position and travel of all ships in our waters,”
Nonetheless, he said the application process has been streamlined as it is now available online and would be processed within three days. – March 1, 2024
