MALAYSIA Law and Practice Contributed by: Janet Toh, Irene Yong, Krystle Lui and Boo Cheng Xuan, Shearn Delamore & Co.
(including operational infrastructure such as network facilities and consumer devices, eg, smartwatches), such equipment shall properly be certified. The registered certifying agency under Section 186 of the CMA for purposes of certifying com - munications equipment is SIRIM QAS Interna - tional Sdn Bhd. Security The MCMC has also released the Guidelines on Information and Network Security for the Com - munications and Multimedia Industry (INSG, dated 29 October 2024), which provide best practice recommendations to enhance the infor - mation and network security and resiliency of the communications and multimedia industry in the country. The INSG serves as a best prac - tices framework and is not mandatory at this point, based on a media statement issued by the MCMC on 8 December 2024. 6.2 Net Neutrality Regulations To date, Malaysia does not have specific legisla - tion enforcing net neutrality. 6.3 Emerging Technologies The rapid adoption of 5G, IoT and AI is reshaping Malaysia’s telecommunications sector, driving both technological advancements and regula - tory considerations. As Malaysia expands its 5G ecosystem, the government has decided to tran - sition from a Single Wholesale Network to a Dual Wholesale Network model. While this shift aims to enhance competition and network resilience, it has raised key concerns particularly regarding network slicing capabilities for private 5G, cov - erage differentiation, network automation and AI-driven efficiencies and ESG considerations.
These factors are influencing policy decisions, infrastructure development and regulatory approaches within the telecommunications sec - tor. In response to emerging technologies and the rapidly evolving digital landscape, Malaysia has introduced significant legislative changes to address emerging challenges, including the CSA, PDP Amendment Act and OSB as dis - cussed in 1.1 Key Challenges , as well as other legislative initiatives as discussed in the chapter on Trends and Developments. 7. Challenges with Technology Agreements 7.1 Legal Framework Challenges One of the main legal challenges encountered by organisations entering into a technology agree - ment is data protection, given the complexities of data protection requirements. The contractual negotiations may be made more challenging if foreign data protection laws apply, which may mandate the inclusion of model or standard con - tractual clauses which are not required by the PDPA. The contracting parties should carefully navigate the interaction between the domestic and foreign data protection frameworks. Con - tention may revolve around contractual clauses on the cross-border transfer of data and the technical and organisational measures to be adopted. Some other challenges in the contracting pro - cess may relate to contractual clauses on intel - lectual property, liability and risk allocation, eg, indemnification issues. Contracting parties from certain regulated indus - tries may also face additional layers of challeng - es when negotiating technology contracts. As discussed in 2. Cloud and Edge Computing ,
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