Friday, May 21, 2021

USP Fund: Payment flexibility for 34 telecommunication companies in Malaysia, says minister

Communications and Multimedia Minister Datuk Saifuddin Abdullah speaks to the press after launching the 100-Days Report Card for his ministry in Putrajaya June 17, 2020. — Picture by Choo Choy May
Communications and Multimedia Minister Datuk Saifuddin Abdullah speaks to the press after launching the 100-Days Report Card for his ministry in Putrajaya June 17, 2020. — Picture by Choo Choy May

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PUTRAJAYA, May 2 — A total of 34 telecommunication service provider companies holding licenses under the Communications and Multimedia Act 1998 (CMA 1998) were given the flexibility in paying contributions to the Universal Service Provision Fund (USP Fund).

Communications and Multimedia Minister Datuk Saifuddin Abdullah in a statement today said the payment flexibility which involved RM910.4 million covered the period from January 2020 to April 2021.

He said all the companies have applied to defer payment or pay in installments for the USP Fund contribution as their businesses have been affected by the Covid-19 pandemic.

“As such, the government has agreed that the Malaysian Communications and Multimedia Commission (MCMC) give some allowance to these network facilities provider, network services provider and application services provider companies, he said.

With the payment relaxation, it is hoped that the companies would be able to recoup and stabilise operations to continue to contribute to the development of the telecommunications industry in the country, he added.

The USP Fund established under Section 204 of the Communications and Media Act 1998 and managed by MCMC was aimed at bridging the digital divide by providing telecommunication and digital communication services to areas that lack telecommunication access.

As per the USP regulation, it is mandatory for telecommunication services companies which record a net profit of more than RM2 million in the year of assessment, to contribute six per cent of its weighted revenue to the USP Fund. — Bernama




Source: Malay Mail

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