PUTRAJAYA: The government has agreed to reinstate the cabotage policy exemption 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.
Transport Minister Anthony Loke (pix) said the move was approved during a Cabinet meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim here today.
“The (waiver) 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 told 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.
Following the Cabinet’s decision today, Loke said, the Transport Ministry will take the necessary steps for the gazetting process.
“The effective date for this exemption will be announced later,” he said, adding that it is expected to take effect within two months.
Meanwhile, Loke said the Cabinet has also agreed to implement again the cabotage policy for ships operating cargo services from the peninsula to Sarawak.
This is following the Sarawak government’s request to support the local shipping industry’s growth which has been under pressure due to the cabotage policy exemption since June 1, 2017.
“The Sarawak government, in its feedback to the Transport Ministry, said the cabotage policy waiver has stunted the shipping industry’s growth, especially in Sarawak.
“Prior to the exemption, there had been 12 Malaysian shipping companies active in providing cargo services; but in the last few years, only five active companies are left. Hence the cabotage policy needs to be reinstated to help the local shipping sector’s growth, especially between the peninsula and Sarawak,” he explained.
Loke said that the exemption of cabotage policy for vessels carrying out cargo services from the peninsula to Sabah and Labuan will, however, remain in line with the Sabah government’s stance. -Bernama