THE Cyber Security (Exemption) Order 2025 (P.U. (A) 47), signed by Prime Minister Datuk Seri Anwar Ibrahim, officially came into effect on Feb 1, 2025.
Issued under Section 61 of the Cyber Security Act 2024, this order grants full exemption to nine major multinational technology corporations, including Amazon, Google, and Microsoft, operating in Malaysia from compliance with the Act’s obligations.
Pahang MCA Youth holds deep concerns about the serious implications of this exemption, which include:
1. Exempting these companies from mandatory reporting of cybersecurity breaches to the government;
2. Exempting them from compliance with national data processing and information security standards;
3. Restricting the government’s authority to investigate or enforce penalties, even in cases of data leaks;
4. Creating an unequal legal landscape, where foreign and local businesses are subject to vastly different regulatory obligations (double standards).
These scenarios raise several pressing questions:
- Why has the government granted foreign corporations to what amounts to legal immunity?
- Who will safeguard the data security and digital rights of Malaysian citizens?
- Why must local businesses bear the full burden of regulation, while foreign firms may operate without identical constraints?
- Does this decision signal a compromise of national sovereignty in exchange for short-term investment gains?
Pahang MCA Youth firmly believes that technological collaboration and foreign investment must not come at the expense of national interest or legal integrity. Safeguarding public trust and regulatory authority should remain paramount.
Therefore, we urge the following actions:
1. The Prime Minister, Communications Minister and Digital Minister must provide a transparent explanation for this Exemption Order, detailing its justification and potential consequences.
2. Parliament should establish a special Select Committee to scrutinise the legality and national security risks posed by this exemption.
3. The government should immediately suspend the Order and conduct a thorough review to ensure uniformity and necessity.
Data sovereignty is not negotiable. The rule of law must apply equally to all. We cannot accept a system where enforcement is stringent for some (Malaysians) and absent for others (foreigners).
WONG SIEW MUN
MCA Youth Pahang Chief
