Report states MCMC grants Starlink 10-year licence despite full foreign ownership.

The Malaysian government has granted a 10-year licence to US internet provider Starlink to operate in the country, despite not meeting the requirement for a 49% threshold for foreign equity. The Malaysian Communications and Multimedia Commission (MCMC) has stated that the usual conditions imposed on applicants can be exempted by the relevant minister, in this case Communications and Digital Minister Fahmi Fadzil. The MCMC is responsible for issuing licences to digital network players in the country.

The MCMC has explained that their assessment of such requests includes looking at the applicant’s organisational setup, global presence, and decision-making structure. Policy considerations also include reviewing the applicant’s ‘Malaysia Digital’ status, the country’s commitments in any free trade agreement with the applicant’s country of origin, and the direct and indirect benefits the applicant can bring to Malaysia.

According to the MCMC’s licencing guidelines, individual licence holders for Network Facilities Provider (NFP) and Network Service Provider (NSP) are allowed to set up various infrastructure, such as fixed cables, satellite hubs and control stations, submarine cable landing centres, towers, and poles. They are also permitted to offer bandwidth services, broadcast distribution services, and cellular mobile services.

In spite of not fulfilling the conditions, Starlink’s application was approved due to its evaluation of “value and benefits”, as stated by the internet regulator. The Companies Commission has listed Lauren Ashley Dreyer and Ngoh Choo Ann as two directors of Starlink Malaysia, with 100% ownership of shares by Starlink Holdings Netherlands. The company’s secretaries are Chia Poh Tin and Lim Hui Ming, the latter being the daughter of DAP veteran Lim Kit Siang.

Starlink’s entry into Malaysia has faced controversy after Prime Minister Anwar Ibrahim announced the purchase of 40 units of the company’s satellite kits for providing internet services in various locations. The decision sparked debates on social media over the viability of relying on a foreign internet service provider. Concerns were raised about whether the decision bypassed procurement procedures and whether Starlink’s coverage justified its high price compared to existing broadband and mobile internet connections in the country.

An American analyst, Shahid Bolsen, highlighted in a viral video commentary that Starlink’s internet service was “notoriously less reliable” compared to Malaysian ISPs, questioning the choice to pay more for slower and less reliable internet from a foreign company when domestic providers were available.