The World's Technology Giants Ask For Concessions From The Malaysian Government, This Is The Goal

Cabotage regulations in Malaysia, complicate the repair of the submarine internet cable network. (photo: doc. unsplash)

JAKARTA - Facebook, Google, Microsoft, and Amazon are trying to meet with the Malaysian Prime Minister to ask foreign ships to be allowed to repair submarine cables in its waters. This request was submitted by a Google spokesperson, Saturday, September 4.

The tech giant sent a letter on Wednesday, Sept. 1 to the office of the new Prime Minister, Ismail Sabri Yaakob, to discuss Malaysia's cabotage policy, seeking restoration of the exemptions lifted last year under the previous administration, a spokesperson for Alphabet Inc's Google said.

Cabotage rules are rules that regulate activities in the waters of a country.

The tech giant is represented by Malaysia's national internet exchange agency, Malaysia Internet Exchange (MyIX), which is leading the engagement with the government.

MyIX chairman Chiew Kok Hin said the situation would be different if the domestic industry were more developed, with several companies having the required cable repair capabilities.

"Where's the harm in letting tech giants continue to use foreign vessels for repair work while facilitating the transfer of knowledge so the local industry can thrive," Chiew told Reuters by email. He added that there is only one Malaysian company in the industry and that company does not have the capability.

Facebook Inc, Microsoft Corp, and Amazon.com Inc did not immediately respond to Reuters questions about the letter. Neither the Prime Minister's Office nor the Ministry of Transport.

The ministry last November canceled an exception, granted in 2019, which allowed non-Malaysian vessels to carry out repairs to submarine cables. The tech giant also wrote to the then prime minister, Muhyiddin Yassin, seeking to reverse the waiver.

Ismail Sabri himself became prime minister two weeks ago after Muhyiddin lost his parliamentary majority. Technology groups in Malaysia said they were "deeply concerned" about last year's decision.

"This exception has ensured that subsea cable repair work can be carried out efficiently in a short period of time, thereby minimizing the duration and economic impact of cable disruptions," they said.

Reuters did not have details on when and how the cable was damaged or what impact the damage would have on communications, but MyIX said 98% of internet traffic was using undersea cables.