New Licensing Requirements on the Provision of Cloud Services in Malaysia to Come Into Operation on 1 April 2022

In line with one of the initiatives set out in the Malaysia Digital Economy (MyDIGITAL) Blueprint to shift towards a cloud first strategy and to enhance the usage of cloud services nationwide, the Malaysian Communications and Multimedia Commission (“MCMC“) issued the ‘Advisory Notice on Cloud Service Regulation Introduced to Increase Accountability for User Data Security and Sustainability of Services’ on 15 October 2021 (“Advisory Notice“), and the ‘Information Paper on Regulating Cloud Services’ on 17 December 2021 (“Information Paper“), to implement light touch licensing requirements for the provision of cloud services in Malaysia, which will be fully in force commencing 1 April 2022.

This Update discusses the implementation of licensing requirements for the provision of cloud services in Malaysia, as well as its implications for cloud service providers.