PUTRAJAYA (May 21): A total of 34 telecommunications service provider companies holding licences under the Communications and Multimedia Act 1998 (CMA 1998) are given 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 involving RM910.4 million covered the period from January 2020 to April 2021.
He said all the companies had applied to defer payment or pay in instalments for the USP Fund contribution as their businesses were affected by the Covid-19 pandemic.
“As such, the government has agreed that the Malaysian Communications and Multimedia Commission (MCMC) give some allowances 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 will 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 CMA1998 and managed by the MCMC is aimed at bridging the digital divide by providing telecommunications and digital communications services to areas that lack telecommunications access.
As per the USP regulation, it is mandatory for telecommunications services companies recording a net profit of more than RM2 million for the year of assessment to contribute 6% of its weighted revenue to the USP Fund.
