KUALA LUMPUR: The government is keen to explore data embassy in Malaysia due to growing interest by investors as this will strengthen the country’s position as a preferred investment destination, according to Communications and Digital Minister (KKD) Fahmi Fadzil.
He said the data embassy is a concept pioneered by several countries in Europe such as Estonia, whereby it serves as a data processing centre with its own embassy regulations.
The concept, he added was raised by the tech companies during the recent Asia-Pacific Economic Cooperation (Apec), which was attended by Prime Minister Datuk Seri Anwar Ibrahim. Other topics discussed included establishing a Digital Free Trade Zone and data protection policies.
Fahmi said that it has not made any policy decision yet on data embassy although it is an enticing concept to explore.
However, he added it needs to be balanced with the existing Data Protection Acts in Malaysia.
“Its an interesting concept but we need to balance it with the Cybersecurity Bill that is currently being drafted as well as amendments to the Personal Data Protection Act (2010) and the Omnibus Protection Act that will be brought to parliament hopefully in the first quarter, next year.
“This is important because (despite) whatever industry requests (we receive) ... the most important thing is our rule of law and also data security, especially for Malaysians ... we need to be careful,” he told reporters after the launch of the GSMA DXAF’s Digital Transformation Leaders’ CxO Summit today.
In addition, he said that Malaysia continues to be the preferred investment destination, particularly on data centres, following the premier’s Apec trip which secured a total of RM63.02 billion in proposed investments in the US, namely from tech companies.
“This is very positive because companies like Google, Microsoft and Tiktok, particularly are major investors for data centres. Our policies are very clear. We are open for business and we continue to be a preferred destination.
“Malaysia has abundant land, sufficient renewable energy and the facilitation that entities like Malaysian Investment Development Authority and Malaysia Digital Economy Corporation (provides), are the key reasons and factors for why Malaysia continues to be the preferred destination for data centres in the region,” he added.
Meanwhile, Fahmi said a meeting is scheduled to finalise details on the share subscription agreements (SSA) with mobile network operators (MNO) and Digital Nasional Bhd (DNB).
“I will hold a meeting with my secretary-general, KKD, secretary-general of the treasury and we will decide on a few things, including the date for the signing of the SSA. We hope that in the near future, we will organise an event for the SSA sigining ceremony,” he told reporters after the launch.
