PETALING JAYA: The exemption given to Starlink Internet Services Malaysia Sdn Bhd for a 100% foreign equity stake is justified as its services bring direct and indirect benefit to the country, says the Communications and Digital Ministry.
In a written reply to a question by Ayer Hitam MP Datuk Seri Dr Wee Ka Siong (pic), the ministry and the Malaysian Communications and Multimedia Commission (MCMC) said the company's internet broadband satellite had managed to provide services in areas which did not have coverage, a factor which was considered.
"I asked about the justification for the relaxation of the condition for a maximum of 49% foreign equity and also the issuance of a 10-year operating licence to Starlink.
"I also asked to what extent this relaxation affected the country's cybersecurity policy," the MCA president said in a Facebook post Thursday (Nov 23).
"Considering the fact that 4G and 5G coverage is getting stronger in Malaysia while the entire internet network will be ready in the near future, what is the estimated cost per capita of using Starlink in this project," he added.
In its written reply, the Communications and Digital Ministry further said the consideration to operate with a 100% foreign equity stake was also given to three other companies that operated on a global scale.
"They were NTT MSC Sdn Bhd, AT&T Worldwide Network Services (Malaysia) Sdn Bhd and BT Systems (Malaysia) Sdn Bhd, which still held licences to date under Act 588," the ministry said.
As such, it added that the consideration to allow a 100% foreign equity stake was nothing new and was implemented as early as 2010.
"The issuance of licence to Starlink Malaysia was to allow the company to operate telecommunication activities in Malaysia under the conditions of its licensing which it needs to adhere to," added the ministry.
Under the licence, it said the company must comply with information secrecy and integrity by adhering to the codes, instructions or guidelines under the laws governed by MCMC or other relevant authorities.
"The government through MCMC will conduct a Proof of Concept (POC) for the installation of Starlink devices in 40 locations which were selected nationwide to assess the feasibility of Starlink's broadband as an interim measure," it said.
This, said the ministry, was to solve the teething problems in areas which were facing coverage issues, including schools, universities and isolated areas.
To this effect, MCMC had obtained 10 Starlink devices with high performance specifications on a priority subscription package for a year from Starlink for POC in several initial locations.
"This device package allows consumers to download a maximum speed of 350 Mbps and upload until 40 Mbps.
"The cost for the Starlink satellite services were RM190,841," added the ministry.
