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The Kingdom of Saudi Arabia’s Ministry of Communications and Information Technology (MCIT) and Huawei, a leading global ICT solutions provider, have signed a Memorandum of Understanding (MoU) to enable the national cadre in ICT and promote innovation and entrepreneurship in the sector to push the growth and development of the kingdom, and achieve the goals of Saudi Vision 2030 and the National Transformation Plan 2020.

The MoU also establishes an agreement between Huawei and MCIT to further develop its innovation center in the Kingdom to include Artificial Intelligence and Internet of Things (IoT) technologies designed to support Saudi entrepreneurship.

H.E. Eng. Abdullah Amer Al-Swaha, Minister of Communications and Information Technology, attended the signing ceremony. He was accompanied by Deputy Minister for Technology and Digital Capacities, Dr. Ahmed bin Hamdan Al-Theneyan, Mr. Mark Xue, Vice President of Huawei, Paul Scanlan, CTO, Huawei Technologies and Dennis Zhang, CEO, Huawei Tech Investment Saudi Arabia.

From 2018 to 2020, 1,500 Saudis will undergo training from Huawei in skills related to ICT across the board. Two of the programs, the Future Leaders Program and the National Industrial Training Institute Program will end with full-time employment for every trainee. Huawei will also provide awareness programs to be delivered through VSIC visits as well as its innovative and effective ICT Skill Competition, which should reach an additional 5,000 students and trainees.  

In particular, the further joint developments to Huawei’s existing Customer Solution Integration and Innovation Experience Centre (CSIC) facility will focus on the development and utilization of AI and IoT technologies in enabling the Kingdom’s entrepreneurs.

These investments will allow entrepreneurs to use these platforms to further pursue innovation, as well as to train themselves and their organizations for success as digital transformation becomes more comprehensive.

H.E. Eng. Abdullah Amer Al-Swaha commented: “We have successfully signed and carried out significant MoUs with partners in both public and private sectors and non-profit organizations in pursuit of economic diversification, technological advancement and the construction of a knowledge economy. Huawei continues to be an ideal partner in our journey. We are proud of the accomplishments our past MoUs with Huawei have resulted in. We will now strive to accomplish the activities mentioned in this agreement, as it enables us to further empower the Saudi people, and assist them to build a Kingdom that is leading, regionally and globally, when it comes to the frontiers of the digital transformation.”

Mr. Mark Xue, Vice President of Huawei, stated, “We are in a crucial and exciting moment in the Kingdom of Saudi Arabia’s journey towards digital transformation. We have long maintained an approach that is designed to assist and enable the Kingdom’s capabilities and enhance their collective knowledge and expertise in all areas of ICT in order to help them achieve their NTP 2020 and Vision 2030 goals. With robust and comprehensive training programs and expanded facilities that will offer world-class AI and IoT technologies, we are confident that our partnership with the MCIT will be a great service to the Saudi people and the Kingdom as a whole.”

The MoU follows a number of CSR initiatives launched by Huawei in the Kingdom. Huawei brought its global Seeds for the Future training program to Saudi Arabia three years ago in collaboration with the Communications and Information Technology Commission (CITC) in order to develop the next generation of ICT talent.

Huawei’s training center in Riyadh has graduated over 4,000 engineers since it was established in 2006, and more have taken part in educational initiatives at the Huawei Academy with the support of the Saudi Technical and Vocational Training Corporation (TVTC) and Yanbu Royal Commission.

In addition, in 2017 Huawei again collaborated with TVTC and CITC to launch the ICT Skill Competition in Saudi Arabia. The Competition brought together more than 10,285 students from 121 educational institutions across the Middle East, 13 of whom earned a once in a lifetime trip to Huawei’s headquarters in Shenzhen, China, for the final. Six students from Saudi Arabia walked away with Excellence Prizes at the event, and several Saudi institutions were also recognized with awards.

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While Malaysia is actively investing in cybersecurity measures, it still faces significant challenges, as evidenced by recently recorded cyberattacks. In 2022, over 28 thousand cyberattacks were documented, though there was a slight decrease from around 33 thousand attacks in 2021. Despite efforts to bolster cybersecurity defenses, the frequency of cyberattacks in Malaysia has been steadily increasing over the past four years.

In response, the Malaysian Parliament recently tabled the Cyber Security Bill 2024, marking a pivotal step in fortifying the nation's cyber defenses. The bill aims to establish a robust regulatory framework to protect Malaysia's cyber landscape, particularly its critical information infrastructure, against evolving cyber threats.

The bill extends its jurisdiction beyond Malaysia's borders, applying to individuals of any nationality or citizenship, as well as to both federal and state governments. Under its provisions, the National Cyber Security Committee (NCSC) will be formed, chaired by the Prime Minister, and tasked with advising the government on cyber security matters and overseeing the bill's implementation. The establishment of the NCSC serves as a pivotal move towards centralizing efforts and ensuring cohesive coordination among sector leads and industry stakeholders.

Granting authority to the Chief Executive of the National Cyber Security Agency, the bill authorizes the establishment of a National Cyber Coordination and Command Centre to manage cyber threats effectively. The Chief Executive is further permitted to issue directives ensuring compliance with the bill's provisions.

Protection of National Critical Information Infrastructure (NCII)

The bill focuses on safeguarding entities that own or operate national critical information infrastructure (NCII). Defined broadly as systems essential to Malaysia's security, economy, public health, and safety, the NCII encompasses sectors such as government, banking, transportation, healthcare, and energy.

Sector leads appointed by the Minister, which are responsible for cyber security, will oversee each NCII sector, designating entities as NCII entities and developing sector-specific codes of practice to ensure cyber resilience.

NCII entities are obligated to implement measures outlined in the sector-specific codes of practice to enhance cyber security. This includes conducting risk assessments and submitting audit reports to the Chief Executive. Moreover, the prompt reporting of cyber incidents is mandatory, which, in turn, triggers investigations and remedial actions, which are implemented by the authorities.

The bill mandates licensing for individuals or entities offering cybersecurity services, underscoring the importance of professional standards in the industry. The specific scope of these services will be determined by the Minister, ensuring alignment with evolving cyber threats and technological advancements.

Regulated entities, particularly those overseen by Bank Negara Malaysia, Securities Commission Malaysia, and the Labuan Financial Services Authority, have already implemented robust cyber security policies. These entities adhere to regulatory guidelines, ensuring the existence of incident reporting mechanisms, business continuity plans, and emergency communications protocols.

Malaysia’s 2024 Cyber Threats Landscape

Kaspersky, a global cybersecurity company, predicts that there will be an increase in cyber-threats in Malaysia throughout 2024, particularly targeting organizations handling personal data within the financial and telecommunications sectors.

According to Kaspersky's data from 2023, their detection systems intercepted 26.85 million ‘internet-borne’ attacks in Malaysia, averaging 74,000 attacks daily. Additionally, their systems identified and blocked 22 million local infection threats (equivalent to around 60,000 attacks per day).

Malaysia's cybersecurity landscape is evolving rapidly, with cyber solutions poised to dominate the market with a projected volume of USD 284.10 million in 2024. This sector is expected to witness robust growth, with revenue forecasted to increase at an annual rate of 13.71% (CAGR 2024-2028), reaching a market volume of USD 844.70 million by 2028.

Moreover, the average spend per employee in cybersecurity is projected to reach USD 29.79 in 2024. Thus, the need for robust investment in cyber security is mandatory to ensure that Malaysia’s cyber landscape is protected and can flourish.

Malaysia's Digital Transformation Efforts

In line with Malaysia's digital transformation agenda, cyber security has been identified as a key enabler under the Program Mangkin Malaysia Digital (PEMANGKIN). The Malaysia Digital Economy Corporation (MDEC) has allocated significant funding to support cyber security initiatives, underscoring the importance of this sector in Malaysia's digital evolution.

As the need for cyber security increases, service providers offering penetration testing, independent cyber audits, and cloud security services are poised to play a pivotal role in transforming Malaysia's digital landscape. Through initiatives like the Malaysia Digital Status, these providers can access incentives such as tax benefits and foreign worker quotas, fostering growth and innovation in the cyber security sector.

The passing of the Cyber Security Bill represents a commendable and timely step in Malaysia's journey towards digital resilience. The Cyber Security Bill 2024 underscores Malaysia's commitment to building a secure digital infrastructure ecosystem. By bolstering its cyber security framework, Malaysia aims to instill greater confidence among international partners and investors, positioning itself as a leading digital hub in ASEAN.

 

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