Malaysia plans sovereign cloud to protect data while staying open to Big Tech
Prime Minister Datuk Seri Anwar Ibrahim called for a sovereign cloud to shield Malaysia’s critical security and personal data from foreign access while keeping the door open to global digital investment.
Source: Malay Mail · July 23, 2026 at 7:47 AM · AI-assisted report
Single-source
KUALA LUMPUR, 23 JULY 2026 —
Prime Minister Datuk Seri Anwar Ibrahim called for a sovereign cloud to shield Malaysia’s critical security and personal data from foreign access while keeping the door open to global digital investment.
Market Impact
Speaking at the 39th Asia-Pacific Roundtable in Kuala Lumpur today, Anwar said US laws such as the Cloud Act allow American authorities to compel local subsidiaries of US tech firms to hand over data stored anywhere, including Malaysia. To defend national interests, he said, the government must build domestic cloud capacity that can segment and firewall sensitive information.
“That, to my mind, is the ingenious way to protect our people and our interests,” Anwar said. He acknowledged limits to such protection in an open, democratic society, noting that firewalls cannot block all cross-border data flows.
The push for a sovereign cloud comes as Southeast Asia grows more dependent on digital infrastructure. Anwar stressed that Malaysia would still welcome investment from the US, China and Germany, with Asean centrality ensuring the country remains an attractive and neutral partner.
He also highlighted risks from unchecked social media and digital platforms, which he said enable abuses with political, economic, personal or sexual motives. Government safeguards, he argued, are needed to protect Malaysians—especially young people—from harmful online exposure.
On Malaysia’s role in the region, Anwar reiterated that the country does not seek middle-power status individually. “Our strength lies not only in Malaysia’s potential, but also in Asean’s potential,” he said. The government will continue engaging all friendly nations while encouraging smaller countries to coordinate regionally rather than compete.