Malaysia has announced plans to introduce a national cloud policy and regulatory framework for artificial intelligence (AI). Prime Minister Anwar Ibrahim made the announcement on October 1, 2024, emphasizing the government’s commitment to enhancing the nation’s digital infrastructure and technological capabilities. The national cloud policy will focus on four key areas: modernizing government operations, enhancing citizen engagement, streamlining the delivery of public services, and promoting economic competitiveness by enabling businesses to harness cloud technology for innovation and global market access.
In addition to the cloud policy, Malaysia will establish a National AI Office to coordinate AI initiatives and set up a regulatory framework for the technology within the next 12 months. This move aims to regulate and promote the development and adoption of AI across various sectors in the country. Prominent technology companies are already showing interest in Malaysia’s tech infrastructure.
Malaysia advances digital infrastructure initiative
Google revealed plans for substantial investments, predicting the creation of approximately 26,500 jobs and a projected addition of $3 billion to Malaysia’s Gross Domestic Product (GDP). Google’s investment includes the construction of a data center in Sime Darby’s Elmina Business Park, Selangor, which aims to meet the growing demand for Google Cloud capabilities, AI innovations, and other digital services.
Sime Darby Property Group Managing Director Datuk Seri Azmir Merican expressed pride in partnering with Google to establish their first hyperscale data center in Malaysia. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz emphasized the critical role of Google’s data centers in enabling the government’s New Industrial Master Plan 2030, which aims to create 3,000 smart factories. Prime Minister Anwar also announced the government’s decision to overhaul the salary scheme for civil servants, with adjustments to be implemented in two phases starting from December 1, 2024, and January 1, 2026.
He stressed that increased efficiency is crucial to enhancing capabilities in the public sector. The Digital Ministry has been tasked with spearheading Malaysia’s comprehensive digital transformation initiatives, aiming to complete the AI Technology Action Plan (2026 to 2030) and establish a regulatory framework for ethical and sustainable AI adoption.
