Malaysia to reinstate cabotage policy exemption for undersea cable repairs

 Malaysia's Transport Minister Anthony Loke  (Photo: Bernama)

Kuala Lumpur (VNA) – Malaysia’s government has agreed to reinstate the exemption of cabotage policy for foreign ships involved in submarine cable repair in a bid to attract more foreign investments in the data centre industry and stimulate the growth of the digital economy, reported Bernama news agency.

Malaysian Transport Minister Anthony Loke said the move was approved during a Cabinet meeting chaired by Prime Minister Anwar Ibrahim on March 1. 

The decision follows various engagement sessions with international information technology giants over the last few months and is a testament to the MADANI Government practising an investor-friendly policy, he was quoted as saying at a press conference.

Malaysia introduced the cabotage policy to promote and develop a strong national ship-owning industry as well as reducing the country's dependence on foreign vessels and the outflow of foreign exchange in the form of freight payments.

The official said that following the cabinet’s decision, the Transport Ministry will proceed with the necessary steps for the gazetting process, adding that it is expected to take effect within two months./.