In a lively debate with DAP secretary-general Lim Guan Eng, Wee said that the figure could not be verified or proven.
“I have been accused of allegedly losing RM12-RM15 billion in foreign investments. Where is this figure from?” he asked.
“This figure that has been spread cannot be proven.”
The Pakatan Harapan government approved the cabotage exemption which allowed foreign vessels to perform undersea repair jobs off the Malaysian coast.
However, in November 2020, Wee revoked this exemption for submarine cable repair and dismissed claims that it would affect investments.
In April, then Malaysia Digital Economy Corporation (MDEC) chairman Rais Hussin warned that the revocation of the cabotage exemption might scare off potential investors.
In a statement, Rais said industry sources indicated that three new cable projects originally planned for the country were under review, as were “potential data centre investments worth RM12-RM15 billion in foreign investment”.
Rais, who has been a harsh critic of the government’s decision to revoke cabotage exemption for foreign vessels undertaking submarine cable repairs, resigned just days after coming under fire from shipping associations for referring to Wee as a “minister with an IQ of a cabbage” last month.
While Wee said today that Rais’ estimate on the potential loss of billions of ringgit was a “problem”, Lim replied that the agency head’s figures should not be doubted.
“I’m surprised when you say that investors are not under pressure,” said Lim.
“This information is not from the opposition, it’s from the government. Rais Hussin is not someone from DAP or Pakatan Harapan.
“He is an influential figure in Bersatu and someone in the government. If you can’t even believe the people in the government, who can you trust?” he asked.
The former finance minister also cited a recent study by think tank MIDF Research, which estimated that the country stood to lose RM1.7 billion in investments after being excluded from the Apricot subsea cable project.
Backed by tech giants Google and Facebook, the Apricot cable project connects Japan, Taiwan, Guam, the Philippines, Indonesia and Singapore via a 12,000km-long subsea cable and is expected to be launched in 2024 to meet the growing demand for 4G, 5G, and broadband access in the region.
This sets Malaysia back from its goal of having the highest number of submarine cables landing in Southeast Asia by 2025, according to the MyDIGITAL blueprint released earlier this year – where attracting international submarine cables was one of six goals drafted by Malaysia to build enabling digital infrastructure.
Malaysia was also previously bypassed for Facebook’s Bifrost cable, which linked Singapore and Indonesia to the US West Coast.
Wee, however, insisted that Malaysia remains an attractive investment option for firms eyeing such subsea projects.
He replayed a recording of a video conference where the new Intra-Asia Express Cable project from Japan to Malaysia was being discussed, with the cable set to go through Sabah and Sarawak.
“Will this not benefit Malaysia?” asked Wee.
“Don’t accuse the transport ministry of restricting foreign investment.”
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