The cloud revolution is still in full swing, and businesses across the globe are attempting to transform their outdated, low quality networks with the help of service providers. It’s important to realize not all cloud services are alike, and some companies lack basic requirements needed to work safely and reliably in our digitally focused global economy.  This fact is causing some national governments to directly address this issue, with some imposing new regulations to ensure cloud service providers are adhering to the best possible standards.

According to a recent article by ASEAN Briefing, the Malaysian Communications (News - Alert) and Multimedia Commission (MCMC) recently introduced a new rule requiring cloud service providers to have a application service providers class (or ASP (C)) license, specifically for those offering Platform as a Service (PaaS), Infrastructure as a Service (IaaS) to customers. Additionally, this new rule also requires regional PaaS and IaaS resellers to follow regulatory requirements, as well as the regional data centers which help support these offerings. Foreign cloud service companies with branches in Malaysia are not required to apply for a license, and software-as-a-service providers are also exempt from this change.

The new regulatory approach became effective on Jan. 1st, 2022, but the MCMC does not intend to enforce it until April 1st, 2022. This change is part of a new initiative by the Malaysian government to help make the country a leader in the global digital economy. With this three phase plan, the government hopes to digitally transform private and public life across Malaysia, while also making the region a desirable investment hub for technological innovation over the next decade.

Malaysia’s new regulatory requirements for cloud services will not only benefit businesses investing in cloud services, but will also give foreign investors another reason to consider bringing their funds into the Malaysian economy. This change demonstrates the Malaysian government clearly recognizes cloud as a driving force in the future of work, and understands users need added protections against common digital threats.