Keppel, through its subsidiary Keppel Kruger Holdings (KKH), has secured a facilities-based operator (FBO) license from the Infocomm Media Development Authority (IMDA) of Singapore. The FBO license allows KKH to own, operate and maintain telecom infrastructure in the city state.
The license also authorizes the Keppel subsidiary to provide telecom services in connection with the planned Kruger Cable System project.
According to Keppel, obtaining the FBO license is a critical milestone in the development of the Kruger Cable System, as landing rights in Singapore are one of the first enablers required for any new subsea cable project. These rights allow Keppel to take the next steps toward making a final investment decision on the new cable system.
“As part of Keppel’s asset manager-operator model, Keppel intends to mobilize third-party capital through its private infrastructure fund to support the development of Kruger. The cable system is currently under evaluation with prospective investors, with an investment decision expected by the end of 2026,” the company said in a statement this week.
Subsea cable expansion
The proposed Kruger Cable System will connect Singapore, Malaysia, Bangladesh, India and Oman (Salalah), with branches extending throughout South Asia.
The cable will land on the western side of Singapore at Tuas, using the same beach manhole as the Bifrost Cable System. Kruger will make use of the infrastructure that Keppel has already established.
In 2024, ahead of the main build, Keppel constructed and installed a 1.2 kilometer cable stub for Kruger.
A cable stub is a section of a cable that is laid from the shore out to sea before the main system is installed. It terminates at a point where a cable-laying vessel can connect it to the full route at a later stage.
Keppel stated that using the same beach manhole as Bifrost for the installation of this stub would allow them to utilize existing infrastructure, thereby accelerating Kruger’s development. Work on related projects for Kruger is already underway at Tuas, securing the physical landing path ahead of construction.
“Following the full commercialization of Bifrost earlier this year, Kruger furthers Keppel’s subsea networks strategy, at a time when AI is driving unprecedented demand for high-capacity, resilient international connectivity,” said Manjot Singh Mann, CEO of Keppel’s Connectivity Division.
“Securing the FBO licence demonstrates that our subsea ambitions are moving from intent to execution,” he added, noting that the proposed Kruger Cable System will serve one of the world’s fastest-growing connectivity corridors.
Keppel cited industry research forecasts which suggest that the international bandwidth used by major cloud, AI and content providers will increase by more than fivefold between 2025 and 2035. South Asia and the Middle East are among the regions expected to experience the fastest growth in digital infrastructure investment.
