Tech sector related ships in Malaysian waters exempted from cabotage

Transport Minister Anthony Loke has exempted all cable laying ships engaged in the installation, maintenance and repair of submarine telecommunication landed at any submarine cable landing centre in Malaysia in the Malaysian waters from the cabotage policy.

This was done by exercising section 65U of the Merchant Shipping Ordinance 1952.

“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,” Loke said in a statement from the Transport Ministry.

The exemption is gazetted effective on June 1, 2024.

It is meant to boost investments in internet technology infrastructure of this nation.

The cabotage policy prohibits ships from engaging with domestic shipping without a license from the Domestic Shipping Licensing Board.