Communications Minister Fahmi Fadzil confirmed the government is developing a sovereign AI cloud, managed by MCMC and the Communications Ministry, specifically to keep classified government information beyond the reach of foreign laws governing public cloud services. This matters for connectivity-dependent businesses too: Budget 2027 allocates RM5 billion to JENDELA Phase Two to close remaining rural-urban internet gaps, with Fahmi flagging 5G-enabled IoT and robotics as a direct lever for agricultural efficiency, on top of the digital economy’s existing 25.5% GDP contribution. Government IT contractors, cloud and data infrastructure providers, and agritech or rural e-commerce businesses may be affected, with the sovereign cloud’s rollout timeline and JENDELA Phase Two’s coverage targets both still in progress.

 

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