Direct Malaysia-US Undersea Cable Critical To Reduce Reliance On Foreign Data Routes

By Ahmad Erwan Othman

KUALA LUMPUR, April 25 (Bernama) -- Malaysia must urgently establish its own independent direct undersea cable infrastructure to connect the country directly to the United States (US) to safeguard its digital future and reduce critical dependency on foreign transit hubs, according to Hexa Capital Consultancy PLT chief executive officer Datuk Dr Azhari Hadari.

He said the proposed Malaysia-US (MYUS) submarine cable project is no longer just a business venture but a ‘national strategic asset’ essential for the country’s digital sovereignty and security, designed to reduce latency and bypass existing congested and geopolitically sensitive transit routes through third countries such as Singapore and Hong Kong.

Speaking on the project’s strategic importance, Azhari highlighted that Malaysia currently operates as a ‘spoke’ in a regional wheel centred elsewhere, and that establishing its own direct cable link would transform the nation into a primary data hub for ASEAN.

“We must have our own direct connectivity. Relying solely on existing routes through neighbouring countries like Singapore or Hong Kong leaves our national data vulnerable to external disruptions,” he told Bernama in a recent interview.

Azhari, who is also an expert in the telecommunications and infrastructure sector, warned that heavy reliance on foreign cable hubs poses a significant risk of a ‘blackout’ or digital paralysis if those regional centres face geopolitical attacks or physical sabotage.

He pointed to escalating tensions in West Asia as a stark warning, specifically referencing reports that Iran’s Revolutionary Guard (IRGC) had hinted at potential threats to undersea internet cables in the Persian Gulf and the Strait of Hormuz.

“The situation in West Asia has shown that digital infrastructure is no longer a neutral asset; it is a high-value strategic target,” he said, noting that physical damage in the Red Sea is currently outpacing the industry’s ability to carry out repairs due to war-risk insurance constraints.

Azhari said the MYUS cable project - a nearly 20,000km subsea system - is specifically designed to bypass contested maritime areas such as the South China Sea, opting instead for a more secure route via US territories of Guam and Oregon.

“This direct path ensures Malaysia provides the shortest and lowest-latency digital highway to the US, which is vital for the success of the National AI Action Plan 2030 and the Sovereign Artificial Intelligence (AI) Cloud framework, while also reinforcing the country’s ambition to emerge as a leading AI and data centre hub in ASEAN,” he said.

“Data is the new oil. The billion-dollar data centres being built in Johor and the Klang Valley are ‘engines’ that require high-capacity bandwidth as ‘fuel’. Without MYUS, these centres remain dependent on foreign-controlled ‘pipelines’, potentially limiting the growth of the nation’s digital economy,” he added.

He also said the direct cable system will significantly improve speed, latency and cost efficiency by reducing multiple network transit 'hops' currently required through regional routes.

The initiative is expected to attract foreign direct investment (FDI) from global hyperscalers such as Google, Amazon and Microsoft, which are expanding their data centre operations in Malaysia.

“Actually, this is bigger than Malaysia. Malaysia wants FDI, and we already have FDI in the form of large data centres. Google, Amazon and Microsoft are already here, but they are asking whether we are ready for this. Otherwise, they will go to Singapore. If we have this, they will be very happy to come in,” he explained.

The project has gained significant international recognition and is aligned with high-level US government-backed frameworks, including the G7-backed Partnership for Global Infrastructure and Investment (PGI) and the digital pillars of the Indo-Pacific Economic Framework for Prosperity (IPEF).

Azhari also said a feasibility study grant from the US Trade and Development Agency (USTDA) in 2023 serves as a strong vote of confidence in Malaysia’s stability as a trusted partner in the global data supply chain.

“The US sees Malaysia as a preferred gateway for American tech investment into Southeast Asia. This project de-risks Malaysia for tech giants like Google, Microsoft and Amazon,” he added.

He added that the feasibility study MYUS project was completed by the end of 2024, with contract enforcement targeted for 2026 and construction to follow and expected to achieve its Ready for Service (RFS) status by late 2028, subject to funding and global subsea cable supply conditions, which will position Malaysia as a 'digital safe haven' in a fragmented global landscape.

He noted that Malaysia’s strengths in land, water, power and renewable energy place it in a strong position for data centre growth, but stressed that international connectivity remains the key missing component.

Azhari also revealed that landing stations for the project are planned in Johor, including Mersing and Sedili, with additional linkages to regional data centre hubs.

Therefore, Azhari also urge for continued public-private synergy to reinforce the nation’s digital sovereignty, ensuring Malaysia does not remain a 'middleman' risk in regional data transit.

The MYUS project aims to close a US$720 million capital stack by June 2026 and is viewed as a security-centric investment for the nation’s future. It will feature a capacity of 240 Tbps, providing the necessary infrastructure to support exponential demand driven by generative AI.

-- BERNAMA