Pursuant to the the "Advisory Notice on Cloud Service Regulation Introduced to Increase Accountability for User Data Security and Sustainability of Services", as well as the "Information Paper on Regulating Cloud Services" issued by the Malaysian Communications and Multimedia Commission ("MCMC"), the new licensing requirement on the provision of cloud services has come into force with effect from 1 April 2022.
Under the new licensing requirement, the following cloud service providers are required to be registered under the Applications Service Providers Class ("ASP(C)") licence:
- a local data centre assisting foreign cloud providers to provide their Platform-as-a-Service ("PaaS") or Infrastructure-as-a-Service ("IaaS") cloud services to end users in Malaysia; or
- a locally incorporated company providing PaaS or IaaS cloud services to end users in Malaysia.
Where an ASP(C) licence is required, cloud service providers should immediately apply for an ASP(C) licence and put in place the relevant measures to ensure compliance with all such instruments, guidelines, technical standards, or regulatory policies as may be imposed by MCMC from time to time. Any failure by a cloud service provider to obtain an ASP(C) licence is an offence under the Communications and Multimedia Act 1998 and such service provider shall, on conviction, be liable to a fine not exceeding RM500,000 (where US$1.00 = RM4.20, approximately), or to imprisonment for a term not exceeding five years, or both. Such service provider shall also be liable to a further fine of RM1,000 for every day or part of a day during which the offence is continued after conviction.
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