Did revoking cabotage exemption cause project bypass?

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Revocation of Cabotage Exemption Policy Led to Investors Bypassing Malaysia, Communications Minister Stated

A written reply from the Communications and Multimedia Minister indicated that the Transport Minister's decision to revoke the cabotage exemption policy led to investors bypassing Malaysia. This statement contradicts the Transport Minister's earlier denial in the Dewan Rakyat. The issue centres on the Apricot Subsea Cable System Project, a major subsea cable initiative by Facebook and Google.
Communications Minister's Written Response

On October 8, a written response provided to Bukit Mertajam MP Steven Sim by Communications and Multimedia Minister Tan Sri Annuar Musa stated that the Transport Minister's decision to revoke the cabotage exemption was the reason investors bypassed Malaysia. This official communication directly links the policy change to the bypassing of the country by significant digital infrastructure projects.
Transport Minister's Denial

Conversely, Transport Minister Datuk Seri Wee Ka Siong had previously denied any causal link between his policy decision and the Apricot Subsea Cable System Project bypassing Malaysia. He made this denial in the Dewan Rakyat on September 30. This public stance presented a differing perspective from the one later articulated in the Communications and Multimedia Minister's written reply.
Background of the Policy Change

The revocation of the cabotage exemption policy occurred in November 2020, implemented by Datuk Seri Wee Ka Siong. This action reversed an exemption previously granted by his predecessor, Anthony Loke, during the Pakatan Harapan administration. The cabotage policy generally requires that shipping and maritime services within a country's waters be conducted by domestically registered vessels. Exemptions are often made for specific projects or industries to encourage foreign investment and development.
Apricot Subsea Cable Project's Route

In April of the same year, Facebook and Google announced plans to lay two substantial subsea cables. These cables were intended to connect the West Coast of the United States to Singapore and Indonesia. Notably, the planned route for these cables bypassed Malaysia, a decision that has since become a focal point of the debate surrounding the cabotage policy.

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Did revoking cabotage exemption cause project bypass?

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