Cloud Migration has become a cornerstone of modern business strategy, with future-ready technological infrastructure now a standard expectation. In 2025, Malaysia is emerging as a regional leader in digital advancement across Southeast Asia, propelled by progressive government policies, substantial investments, and escalating enterprise demand for innovation and efficiency.
Malaysia has become a high-tech nation, with cloud computing adoption at its forefront, where the pandemic served as a catalyst for a 56% surge in cloud-based software usage. This momentum is expected to continue increasing, and the following trends and insights outline what businesses can anticipate and how they can capitalise on these developments for strategic advantage.
The Malaysian government has initiated programs such as MyDIGITAL and the Malaysia Digital Economy Blueprint to promote the adoption of Cloud Infrastructure in the public sector and offer incentives for private enterprises to follow suit. With the implementation of clear regulations and the government's facilitation of this technological surge, more SMEs and large enterprises are expected to move to the Cloud.
According to The Sun, cloud adoption in Malaysia is expected to surpass 50% in 2025, driven by increasing demand for operational efficiency, innovation, and agility by enterprises. This surge is further accelerated by the multi-billion-dollar investments made by Microsoft, AWS, Google, and Oracle. The local data centres initiated by these investment drives address concerns of data sovereignty and enable more sectors, including banking, telecom, and government, to migrate critical workloads to the cloud.
The shift toward multi-cloud and hybrid cloud architectures is becoming increasingly prevalent. By 2025, nearly 64% of Malaysian enterprises are expected to migrate their entire application portfolio to the public cloud, with multi-cloud strategies becoming standard practice to mitigate vendor lock-in, ensure regulatory compliance, and strengthen disaster recovery capabilities.
Cloud migration is more than just a ‘lift and shift’ of legacy systems; it has become a re-architecting of systems to harness the capabilities of the cloud fully. This transformation will be marked by the broader adoption of cloud-native technologies such as containers (e.g., Kubernetes), serverless computing, and microservices, enabling greater agility, scalability, and resilience. This shift is also driven by the need to support AI and machine learning workloads, which demand scalable, high-performance infrastructure.
With 5G coverage rising up to 82.4% coverage in populated areas at the beginning of 2025, the spotlight is shifting toward edge computing as a critical enabler of next-generation digital services. To meet the demands of ultra-low latency and real-time data processing, cloud providers are rapidly deploying infrastructure closer to end users and connected devices. This shift is essential for supporting latency-sensitive use cases such as autonomous systems, industrial IoT, and immersive digital experiences.
The coming years will see a surge in ‘green IT’ initiatives, whereby Malaysian enterprises are likely to migrate to cloud providers with a strong environmental commitment. Renewable-energy-powered data centres and cloud platforms that offer tools to measure carbon footprint will be in demand.
With the Personal Data Protection Act (PDPA) in force, Malaysia has a heightened awareness of data governance, resulting in a sharper focus on data residency and sovereignty. Businesses should require cloud providers to have a greater focus on compliance with local regulations and provide transparent access controls.
The cloud migration movement was previously largely dominated by corporate giants. However, with more affordable services, better broadband, and the availability of digital grants such as those offered by Malaysia Digital Economy Corporation (MDEC), SMEs (Small and Medium Enterprises) are more inclined to join in on the movement. There is likely to be a wider movement of accounting systems, customer databases, and even e-commerce platforms to the cloud by SMEs.
The greater the cloud reliance, the greater the risks of cybersecurity. There is an increase in investment in cloud security solutions, including zero-trust architectures and automated threat detection systems. However, there remains a gap in competent talent with increased cloud adoption. There is a greater demand for cloud engineers, DevOps professionals, and cybersecurity experts on a national scale.
As cloud adoption matures in Malaysia, organisations are entering a second phase focused on data engineering and platform modernisation. This involves building scalable data pipelines and adopting unified data platforms to unlock real-time analytics and AI capabilities. This enables real-time decision-making, powers AI-driven use cases, and unlocks deeper insights. It's a shift from simply migrating to the cloud to fully leveraging data as a strategic asset.
In understanding the current trends in Cloud Migration, one must also learn to leverage them to gain a competitive advantage. With the adoption of Cloud solutions quickly becoming the norm, innovative solutions are required to gain business value. In identifying the forecasted path of cloud migration in Malaysia, organisations can strategically align their cloud adoption efforts with their long-term goals.
Gone are the days when cloud migration was just about cost savings and operational efficiency. Observing the trends in cloud migration leads to the conclusion that it must be a strategic decision made by taking into account all aspects of one's business activities and future goals. It has now become a way to build a resilient, intelligent, and sustainable business. Organisations that proactively embrace these trends, while aligning cloud strategies to business outcomes, will lead the next wave of digital innovation in Malaysia.
For more information on how Nimbus can assist your organisation in cloud migration and digital transformation, visit www.nimbus.my.
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