The government, through the Malaysian Communications and Multimedia Commission (MCMC), is in discussion with local internet providers and industry players on the setting up of the country’s own Internet Exchange, Energy, Water and Communications Minister Lim Keng Yaik said.

"I have made up my mind and you know when I make up my mind I push for it. This is what I am going to do with the internet exchange. The internet exchange must be independent of any telecommunications company or internet provider…it must not be controlled by a single party. This will avoid monopoly." […]

"The internet exchange can be run by a consortium of companies…do not force me to make a ministerial declaration for the industry to set up the exchange. We have given them (industry) all the necessary explanation and now it is up to them to execute."

An Internet exchange primarily functions as a point for networks to interconnect directly rather than through a third- party network. With an Internet exchange, however, Keng Yaik said cost to the consumer would be reduced while bandwidth speed increased.

Malaysian Internet exchange was introduced three years ago but failed to take off when the main players TM Net Sdn Bhd and Jaring failed to work together.

Currently, Malaysia Internet users surfing Malaysia-based websites are routed via hosted servers located in Singapore or even the United States, as they have more international telecommunication cables and operating costs are cheaper, subsequently caused the foreign outflow of the ringgit.

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