- OMS Group invests $300 million to expand submarine cable networks and enhance terrestrial backhaul systems, targeting increased demand for data centre and cloud connectivity.
- Chairman Datuk Lim Soon Foo underscores commitment via MIST project and fleet expansion, following KKR′s $400 million investment, boosting ASEAN region connectivity through LitUp Networks.
OUR TAKE
OMS Group’s investment in expanding its cable networks and backhaul systems is a strategic move to meet growing connectivity demands. This underscores the firm’s commitment to bolstering digital infrastructure, enhancing regional interoperability, and supporting economic development within the ASEAN bloc. The initiative positions OMS as a key player in the global telecommunications sector.
–Vicky Wu, BTW reporter
What happened
OMS Group, a Malaysian company established in 1983 and specialising in cable laying and repair services, has announced a substantial $300 million investment in its global cable systems and terrestrial infrastructure. The investment aims to expand the company’s submarine cable networks and enhance its terrestrial backhaul systems, positioning itself to meet the escalating demands for data centre and cloud service connectivity.
Datuk Lim Soon Foo, the chairman of OMS Group, highlighted the firm’s dedication to providing comprehensive connectivity solutions via ongoing investments in vessels and subsea networks through the Malaysia–India–Singapore–Thailand(MIST) cable project. The funds will also go towards improving the company’s backhaul capabilities. Earlier this year, OMS Group secured a loan of $300 million through a syndicated facilities agreement with a consortium of financial institutions, intended for expanding its cable ship fleet. This investment follows a $400 million capital injection from KKR last year. The company owns a fleet including six cable laying and repair vessels, the latest being the CS Cable Vigilance, launched in 2022, along with two barges and three tug boats. Furthermore, OMS Group’s subsidiary, LitUp Networks, recently signed a Memorandum of Understanding (MoU) with International Gateway to boost network connectivity and digital infrastructure in Thailand and the broader ASEAN region.
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Why it’s important
This investment by OMS Group underscores the critical role that robust digital infrastructure plays in supporting the growth of data centres and cloud services, essential components of the modern digital economy.
By taking a proactive stance in upgrading its subsea cable systems and terrestrial backhaul infrastructure, OMS Group is not only positioning itself to capitalise on the burgeoning demand for connectivity but also reinforcing the digital backbone of the Asia-Pacific region. The expansion of the MIST subsea cable and the enhancement of terrestrial backhaul systems will facilitate greater interoperability and reliability of digital services across Malaysia, India, Singapore, and Thailand.
Moreover, the collaboration between LitUp Networks and International Gateway signifies a strategic move to strengthen regional digital infrastructure, which is vital for fostering economic development and facilitating seamless international trade within the ASEAN bloc. This investment and subsequent developments reflect OMS Group’s commitment to contributing to the global connectivity ecosystem and its vision for sustainable growth in the telecommunications industry.
