Malaysia seeks partners for RM2 billion SALAM subsea cable

• Malaysia seeks partners for the RM2 billion SALAM subsea cable.
• The 5,582-kilometre system will strengthen domestic network redundancy.

Malaysia’s communications regulator has invited licensed telecom companies to register their interest in building a domestic submarine cable linking Peninsular Malaysia with Sabah and Sarawak.

The Malaysian Communications and Multimedia Commission issued the invitation on July 16. Eligible licensees were also asked to submit a draft universal service plan for evaluation, although the regulator did not set a submission deadline.

Known as the SALAM System, the Madani Submarine Cable Connection Project will extend approximately 5,582 kilometres. It will comprise four submarine cable segments connecting ten landing stations.

Expanding east-west connectivity

SALAM will expand Malaysia’s domestic submarine infrastructure between Peninsular and East Malaysia. Communications Minister Fahmi Fadzil previously said the project would replace the ageing SCREAM cable system, which has operated for more than a decade.

Malaysia also operates the Sistem Kabel Rakyat 1Malaysia, or SKR1M, which began carrying commercial traffic between Peninsular Malaysia, Sabah, and Sarawak in 2017. The approximately 3,700-kilometre system was built with an initial capacity of 4Tbps and connected six locations.

SKR1M was developed through a public-private partnership involving MCMC, Telekom Malaysia, and other industry participants. It was designed to expand domestic submarine cable capacity and improve communications links between the two sides of the country.

MCMC said SALAM would provide a domestic connectivity backbone for broadband and 5G networks. The regulator also linked the project to cloud infrastructure, data centres, artificial intelligence technologies, and other digital industries.

MCMC said the system would add geographically diversified routes between Peninsular and East Malaysia, increasing redundancy across the domestic network. It said the additional routes would reduce the risk of service interruptions affecting communications between the regions.

Available project information does not detail how SALAM’s submarine routes, landing infrastructure, and terrestrial links will differ physically from existing systems.

Earlier government information identified proposed landing areas in Johor, Sarawak, and Sabah. The route was expected to run from Sedili in Johor to Kuching and Sibu in Sarawak, followed by Tuaran, Kudat, Pulau Banggi, Sandakan, and Tawau in Sabah.

Those announcements identified eight locations, while the latest project description refers to ten landing stations. The complete list of current landing locations has not been published.

MCMC has also not released the current network topology, fibre-pair count, transmission technology, initial capacity, or maximum design capacity.

Funding and delivery

The federal government allocated RM2 billion, or about US$489 million, to the project under Budget 2026.

The figure represents a government allocation rather than an awarded construction contract. Available public documents do not provide an itemised cost breakdown covering the cable, landing stations, terrestrial connections, consultancy work, maintenance, or contingencies.

Budget 2026 documents initially described SALAM as a 3,190-kilometre system. MCMC’s latest notice places the planned length at approximately 5,582 kilometres, although the regulator has not explained the difference.

The project is being advanced through Malaysia’s Universal Service Provision framework. The framework uses contributions from qualifying communications licensees to fund network facilities and services in underserved areas.

Malaysia has previously used the Universal Service Provision Fund for rural broadband, fibre upgrades, and communications infrastructure in designated target areas.

MCMC’s announcement does not state how the RM2 billion allocation will be divided between Universal Service Provision funding and any contribution from the selected licensee. It also does not specify who will own and operate the completed system or whether its capacity will be available to multiple service providers.

The project is expected to take between two and three years to complete. MCMC has appointed a consultant to advise on the project and oversee processes including the tender.

Deputy Communications Minister Teo Nie Ching said in May that external advisers were needed because of the project’s scale. She said the consultancy would help ensure that procurement and implementation were handled properly.

MCMC has not announced a tender date, contract-award schedule, or ready-for-service target. It is also unclear which project milestone will mark the start of the estimated two-to-three-year completion period.

Backbone and local networks

Sibu Member of Parliament Oscar Ling said the project would strengthen communications links between Peninsular Malaysia, Sabah, and Sarawak. He also called for implementation to proceed so that users in Sibu and other parts of Sarawak could receive more stable and resilient internet services.

SALAM will provide long-distance backbone connectivity between the regions. Connections for homes, businesses, and mobile users will still depend on terrestrial fibre, mobile backhaul, base stations, and local access networks linked to the cable landing stations.

Available project information does not identify any related last-mile or terrestrial network upgrades that will be delivered as part of SALAM.

MCMC said the system would support broadband and 5G expansion, as well as cloud infrastructure, data centres, AI technologies, and other digital industries.

The next stage will depend on registrations of interest and draft universal service plans submitted by eligible licensees. MCMC has not announced when it expects to evaluate the submissions or begin the formal tender process.

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