Malaysian experts caution that heavy reliance on foreign cloud providers threatens data sovereignty and local innovation.
PETALING JAYA: Experts have said Malaysia’s growing dependence on foreign cloud providers such as Amazon Web Services, Microsoft and Google could weaken the nation’s long-term control over its data and digital infrastructure.
Universiti Kebangsaan Malaysia (UKM) artificial intelligence expert Assoc Prof Dr Mohd Nor Akmal Khalid said much of the country’s artificial intelligence (AI) and digital platforms are still hosted overseas, posing risks to national self-reliance and data sovereignty.
“In the long term, this is quite risky as foreign cloud platforms are exposed to external threats, both known and unknown.
Although transparency could be achieved, it discourages long-term self-reliance and results in more of our data being taken outside the country.”
He said the country must accelerate cooperation between government, industry and academia to develop secure, locally managed systems.
“Reducing dependency on foreign systems remains slow as many local players, including major domestic providers, have yet to take sufficient action.”
He urged Malaysia to transition from being a mere consumer of imported technology to a producer of homegrown AI solutions.
“We must develop competencies across all management levels and disciplines so that even non-technical professionals become AI-literate.
“This is the only way to move from (being) users to producers, and eventually pioneers, while ensuring our data and systems remain under Malaysian control.”
Akmal added that overlapping ministerial responsibilities are hampering progress on national cloud initiatives.
“Agencies already have authority in this area, but the work is still fragmented at the national level and needs clearer direction.
“A special task force should be created to speed up coordination on the Sovereign AI Cloud project.”
UKM digital economist Dr Stephanie Chuah said Malaysia remains “highly dependent” on global cloud firms for both public and commercial services, a situation that could hinder local innovation and control over sensitive data.
“Data stored on global platforms may be subject to the laws of the provider’s home country. This makes it difficult for Malaysia to assert authority and may even allow foreign governments access to sensitive information.”
She said the use of proprietary technologies by foreign firms also makes it difficult and costly to switch providers later.
“This reduces Malaysia’s bargaining power and limits flexibility in adopting hybrid cloud solutions.”
While acknowledging that foreign partnerships have spurred digital innovation and investment, she said long-term dependence would push value creation abroad.
“The infrastructure, intellectual property and data governance remain under foreign ownership. Much of the long-term value, profits, data insights and technological capabilities flow overseas.”
Chuah suggested that Malaysia adopt a hybrid-sovereign cloud model, in which critical government and sensitive data are stored locally while less-sensitive tasks use global cloud platforms.
“Clear rules must govern cross-border data transfers and require foreign providers to maintain a local presence.”
She also called for stronger policy coordination.
“The Digital Ministry should take operational leadership of the Sovereign AI Cloud, with the Communications Ministry focusing on regulation and cybersecurity.
“An inter-ministerial committee should coordinate both.”
