Next govt must bring back cabotage exemption, say economists

[superadmin]

PETALING JAYA: Now that Malaysia has been bypassed in yet another undersea cable project, economists are calling for the reinstatement of the cabotage exemption for foreign vessels wanting to carry out undersea repairs.

They say the new government that the King is poised to appoint would be wise to reverse the revocation of the exemption, which was done under the Muhyiddin Yassin administration’s watch.

In the latest chapter in the cabotage saga, Facebook and Google have announced that their new subsea cable, aimed at boosting regional connectivity, would bypass Malaysia entirely.

Malaysia Internet Exchange and the Malaysia Digital Economy Corporation said the tech giants’ decision was proof the revocation was pushing investors away at a time when digitalisation was being touted as a key factor in Malaysia’s economic growth.

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