Sovereign AI cloud to protect Malaysia's digital sovereignty, says Fahmi

KUALA LUMPUR: The government is developing a sovereign artificial intelligence (AI) cloud to ensure the country's classified information remains secure and beyond the reach of foreign laws and policies, said Communications Minister Datuk Seri Fahmi Fadzil.

He said the initiative was crucial to protecting Malaysia's digital sovereignty, particularly in securing sensitive government information, including official documents, that could be at risk if stored on public cloud services.

"Prime Minister Datuk Seri Anwar Ibrahim previously mentioned this initiative, which we are now in the process of implementing. It is vital for our digital sovereignty, which is the sovereign cloud.

"We have observed that some countries have policies and laws that could make the use of public clouds less secure, especially when it comes to classified information. Therefore, the government has decided to develop a sovereign AI cloud," he said.

Fahmi was speaking as a guest on Bernama TV Ruang Bicara programme, titled "Budget 2027: Empowering Communication, Driving the Orange Economy", here today.

He said the initiative would be managed by the Malaysian Communications and Multimedia Commission (MCMC) and the Communications Ministry.

Meanwhile, Fahmi said providing wider, faster, more affordable and secure Internet access was crucial to strengthening the country's digital economy, which is estimated to contribute more than 25.5 per cent to gross domestic product (GDP).

He said Phase One of the National Digital Network (Jendela) initiative had helped bridge the Internet access gap between urban and rural areas. However, connectivity challenges remained, particularly when users travelled beyond village areas.

"The issue arises when someone leaves a village and suddenly loses the signal. We need to ensure that connectivity remains uninterrupted," he said.

He added that improved Internet connectivity would benefit entrepreneurs selling products online, students participating in digital learning, and members of the public accessing information or applying for government services online.

Fahmi said 5G technology could also improve efficiency in the agricultural sector through the use of the Internet of Things (IoT) and robotics.

Under Budget 2027, the government has allocated RM5 billion for Jendela to expand high-quality Internet coverage, particularly in rural and remote areas.