Fahmi: Starlink Malaysia to comply with our licensing conditions
ALTHOUGH Elon Musk’s Starlink Internet Services Malaysia Sdn Bhd has been allowed to operate in the country as a 100% foreign-owned company, it is still required to comply with local licensing conditions, says Fahmi Fadzil.
The Communications and Digital Minister said any exception to equity ownership must be accompanied by clear and convincing justification for consideration by the ministry as well as the Malaysian Communications and Multimedia Commission (MCMC).
“As a licensee under the Communications and Multimedia Act 1998, Starlink Malaysia must comply with the licence conditions, including ensuring the security of information, network reliability as well as its integrity by adhering to security standards, codes, directives and the guidelines issued under the relevant laws, such as those issued by MCMC or other relevant authorities,” Fahmi said in a written reply to Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam).
Dr Wee had asked the ministry to provide the reason behind the easing of the foreign equity ownership requirements and the issuance of a 10-year operating licence to Starlink Malaysia.
He also wanted to know the impact on the country’s national cybersecurity policy and the estimated cost for the utilisation of the Starlink project.
Fahmi said the same consideration had been given to three other companies operating with 100% foreign equity, namely NTT MSC Sdn Bhd, AT&T Worldwide Network Services (Malaysia) Sdn Bhd and BT Systems (Malaysia) Sdn Bhd.
“These three companies also operate globally in several countries and still hold licences under Communications and Multimedia Act (CMA) to date.
“Therefore, the approach of allowing 100% foreign equity ownership is not a new one and had been implemented as early as 2010,” he added.
Fahmi said there were several factors that had been considered to allow the granting of a licence under the CMA to Starlink Malaysia, including measures to address the gap of Internet coverage especially in rural areas.
“To ensure that the services provided by Starlink Malaysia do not compromise the country’s economic sovereignty, engagement sessions have been conducted with the Defence Ministry, National Cyber Security Agency, Malaysian Space Agency (Mysa), Home Ministry, Investment, Trade and Industry Ministry, and the Malaysian Investment Development Authority,” he said.
He added that the MCMC will conduct a proof of concept (POC) exercise for the installation of Starlink satellite devices in 40 selected locations nationwide.
“This is intended to assess the feasibility of providing Starlink broadband services as an initial solution to address connectivity issues in areas facing coverage challenges, including schools, universities and remote areas.”
Fahmi said the MCMC has obtained 10 units of High-Performance [HP] Starlink kit devices with a priority subscription package for one year from Starlink Malaysia, for the purpose of the POC at several locations.
“The acquisition cost for this Starlink satellite service is valued at RM190,841,” he added.