MDEC chairman Rais Hussin said in a statement that there are strong industry sources indicating three new cables originally planned to be landing in Malaysia are now under review. “Also under review are potential data centre investments worth RM12-15 billion in foreign investment.”

He said Malaysia needs such investments more than ever and the country could not afford “to play the same old, same old protectionist games”.

The cabotage exemption had previously allowed foreign vessels to perform undersea repair jobs. However, in November, transport minister Wee Ka Siong revoked the exemption for submarine cable repair, and dismissed the claims that it would affect investments.

However, Rais said Facebook and Google had already announced plans for cables to be laid in neighbouring Singapore and Indonesia, with Malaysia left on the sidelines.

Rais criticised “the changing of policy wilfully without consulting the relevant stakeholders” as it strongly signals uncertainty and increased risk on the part of the investors. “What if other policies change suddenly and arbitrarily?”

He said companies such as Facebook, Google, Microsoft AWS and others are in a trillion-dollar market transition which is growing and they will look for options.

“Countries that understand and manage this are going to be winners. We don’t even need to compete. Just be there with the right policy framework to support the ‘wave’. Insert one variation of the standard business practice or expectations and it’s a great excuse to look elsewhere,” he said.