Reports by MARTIN CARVALHO, RAHIMY RAHIM and TARRENCE TAN

       DESPITE not being included in Facebook and Google’s Apricot project, Malaysia has not been left out of any regional plans to boost Internet connectivity, says Transport Minister Datuk Seri Dr Wee Ka Siong.

       Dr Wee said this was because Malaysia is part of the US$400mil (RM1.62bil) MIST (Myanmar, Malaysia, India, Singapore) subsea cable system which is expected to be completed in the fourth quarter of 2022.

       Planned in 2018, the 8,100km MIST cable system would directly connect Malaysia, Myanmar, Singapore and India with the Apricot project, a 12,000km undersea Internet cable project connecting Japan, Taiwan, the Philippines, Indonesia and Singapore, said Dr Wee.

       “Therefore, the issue of Malaysia losing out after being bypassed (by the Apricot project) is nonsensical,” he said during Question Time in Parliament yesterday.

       Dr Wee was responding to Lim Guan Eng (PH-Bagan), who asked whether the reimposition of cabotage policy on submarine cable repair works had caused Malaysia to miss out on foreign investments.

       Lim cited a news report that the Apricot project by Facebook and Google would bypass Malaysia entirely and he blamed the nation’s cabotage policy as deterring foreign investments.

       “Can this cabotage policy be withdrawn so we won’t miss out on foreign investments as mentioned by the Malaysia Digital Economy Corporation (MDEC) chairman Datuk Dr Rais Hussin Mohamed Ariff?”

       In response, Dr Wee explained that Malaysia was skipped in the Apricot project due to rising tensions between the United States and China trade war in 2015.

       Dr Wee said that Malaysia’s cabotage policy on undersea cable installation has always been the same since 1980.

       “What Bagan is saying now is about repair works. Repair works and installations are different matters and that’s why what was said by MDEC was wrong, because the cabotage policy covers the context of repair works, and not installation.”

       In April, Rais was quoted as urging the government to reimplement cabotage exemptions for undersea cable repair works, saying that it is vital to attract foreign investments.

       At present, the national cabotage policy does not place a ban on foreign-flagged vessels from repairing undersea cables in Malaysian waters.

       Foreign vessels are allowed to enter Malaysian waters and only need to apply for an electronic domestic shipping licences (eDSL) which takes an average of three days, before entering.

       Earlier, the House experienced a short fiery moment after Dr Wee challenged Lim to a debate over the present national cabotage policy.

       “I’m ready to debate with Bagan. He used to claim that I’m not qualified to be the MCA president. So, I’m issuing this challenge now.

       “Let’s debate for an hour; any topic can be discussed,” Dr Wee said.

       In response, Lim accepted the challenge and asked Dr Wee to set the time, before Speaker Datuk Azhar Azizan Harun intervened and muted the former finance minister’s microphone.

       Azhar then asked Dr Wee to proceed with his parliamentary reply.

       The reimposition of the cabotage policy for submarine cable repair works has been a contentious issue, with critics arguing that such a policy could deter foreign investment and cause giant tech companies to exclude Malaysia from cable projects aimed at boosting regional Internet connectivity.

       However, calls to reimpose the cabotage policy were defended by the Malaysian Shipowners’ Association that deemed the move necessary to safeguard national sovereignty and the interests of the national shipping industry.

       Introduced in January 1980, the cabotage policy for cable repair works was revoked by the former Pakatan Harapan government in April 2019, which exempted vessels involved in submarine cable repair and maintenance work from having to apply for a domestic shipping licence.

       The cabotage policy was reintroduced by Dr Wee on Nov 16, 2020.