How will the NCCP impact Malaysia’s tech industry?

Tech vendors see the policy as a significant milestone and a positive step in realizing the country’s vision.

The newly launched National Cloud Computing Policy in Malaysia is designed to drive cloud adoption for Malaysian businesses. Unveiled at the ASEAN AI Summit Malaysia 2025, the policy focuses on five key pillars which it feels is essential in driving cloud adoption that meets global standards.

“The NCCP offers a clear national roadmap to position Malaysia as a competitive, secure, and sustainable cloud and data center hub, providing investors with regulatory certainty, speeding up digitalization in the public and private sectors, and boosting economic growth through jobs, skills, and innovation,” commented Kamles Kumar, Associate Director and Malaysia Country Lead at Asia Group Advisors.

Kumar also believes that the NCCP will also boost investments by lowering regulatory risks, speeding up approval processes, and aligning with the country's sustainability goals, which in turn, will make Malaysia more appealing to potential investors.

CRN Asia reached out to cloud vendors, cloud service providers and other tech vendors in the country to get their views on the NCCP.

Dickson Woo, Country General Manager and Technology Leader, IBM Malaysia views the NCCP as a significant milestone in accelerating Malaysia’s digital economy and enhancing national competitiveness.

According to Woo, cloud computing is the backbone of digital transformation, enabling innovation, agility, and resilience for both the public and private sectors. With the NCCP’s focus on public service innovation, economic growth, user trust, and digital inclusivity, he believes Malaysia is taking a decisive step toward building a secure, efficient, and future-ready digital ecosystem that’s inclusive for government, industries, and the public.

“At IBM, we are committed to supporting the NCCP’s objectives by bringing our expertise in hybrid cloud, AI, cybersecurity, and data governance. Our technology, including IBM Hybrid Cloud and the AI-powered watsonx, is designed to help Malaysian organizations harness cloud capabilities while ensuring compliance, security, and sovereignty of data. We will continue to collaborate with government agencies, educational institutions, and industry partners to advance Malaysia’s cloud adoption, develop critical digital skills, and unlock new opportunities for innovation and productivity in line with the policy’s ambitions,” said Woo.

Meanwhile, Adilah Junid, Director of Government Affairs, Microsoft Malaysia stated that the NCCP is a positive step in realizing the country’s vision for a trusted, inclusive, and innovation-driven digital economy.

“As a living document, it supports continuous progress and we remain committed to working with the Government, industry, and customers to build a resilient and sustainable cloud ecosystem that drives innovation in Malaysia,” said Junid.

Cloud adoption and data centers in Malaysia

Cloud adoption in Malaysia continues to gain traction as businesses move towards digitalization. Apart from large enterprises making the move to the cloud, the demand for cloud services by SMBs in Malaysia have also increased significantly. Cloud vendors and service providers in the country are also offering simplified and affordable services for customers in their cloud journey.

Enabling the strong cloud adoption is Malaysia’s data center industry. According to statistics, the Malaysia data center market was valued at US$ 4.04 billion in 2024, and is expected to reach US$ 13.57 billion by 2030, rising at a CAGR of 22.38%. With almost all the major global hyperscalers announcing data center investments in the country, the NCCP comes at a crucial time to ensure the development of these data centers meet the requirements set.