Malaysia Weighs Faster Switch to Quantum-Safe Encryption to Protect Data
Malaysia is considering speeding up its move to quantum-safe encryption, the next generation of digital locks designed to withstand future quantum computers. Communications Minister Fahmi Fadzil has asked the industry regulator to start talks with national security agencies and telcos on a joint research space for the switch. For a country where most payments now run through banking apps, e-wallets and DuitNow, the encryption behind those transactions is a big part of what is at stake.
Key facts
- Fahmi asked the Malaysian Communications and Multimedia Commission (MCMC) to engage the National Security Council (MKN), the National Cyber Security Agency (NACSA) and telecommunications companies on a research and development space for “faster and more secure” quantum migration.
- He made the remarks on 8 November after touring exhibition booths at Mobile World Congress (MWC) Doha 2026, saying quantum computers are expected to reach the market in the near future.
- No timeline, budget or formal policy decision has been announced yet. The only concrete step so far is the request for discussions.
- Cloudflare Radar data cited by ProductNation shows 59.6% of Malaysian web requests to Cloudflare used post-quantum key agreement over the past four weeks, placing Malaysia 9th of 11 ASEAN members.
What quantum migration means
Almost every secure connection online, from logging into a banking app to approving a card payment, relies on encryption that would take today’s computers an impractically long time to break. Powerful quantum computers could, in theory, crack some of these methods much faster. “Quantum migration” is the work of upgrading systems to new, quantum-resistant algorithms before that happens.
Security experts often warn about “harvest now, decrypt later”: attackers can copy encrypted data today and wait until a capable quantum machine exists to unlock it. That is why governments are starting early. The US standards body NIST published its first three post-quantum standards in August 2024, and many modern browsers and operating systems already use post-quantum key agreement by default.
Fahmi said he expects quantum migration and quantum-safe communication to be “among the key issues facing many countries in the years ahead.”
What it means for Malaysians
For consumers, nothing changes overnight. You do not need to do anything to your banking or e-wallet app. Upgrades of this kind happen in the background, through app updates, new network equipment and changes on bank servers. Keeping apps and phone software up to date remains the simplest way to benefit from newer security as it arrives.
For banks and payment providers, the signal is that national planning is starting to take shape. Payments in Malaysia travel over telco networks, so a coordinated plan between MCMC, NACSA and the telcos would shape the environment that banks, e-wallets and payment gateways operate in. Bank Negara Malaysia (BNM), the central bank, already requires financial institutions under its Risk Management in Technology (RMiT) policy to run annual cyber drills. Earlier this month, the government also named finance as one of four strategic sectors, alongside energy, transport and food supply, that it is considering stronger protection for.
For merchants and SMEs, the practical impact will mostly come through their payment providers and point-of-sale (POS) vendors. Older terminals and software that cannot be updated may eventually need replacing as standards move on, so it is worth asking providers about their upgrade plans when contracts come up for renewal.
Other regulators in Asia are already moving on the banking side. On 2 November, the Hong Kong Monetary Authority (HKMA) and the Hong Kong University of Science and Technology released a post-quantum cryptography toolkit to help banks list their cryptographic systems, set priorities and draw up timelines. The HKMA’s Quantum Preparedness Index gave Hong Kong’s banking sector an initial score of 2.3 out of 10, with a goal of reaching 10 by 2030.
What to watch
- Whether MCMC’s talks with MKN, NACSA and the telcos produce a formal roadmap with deadlines and funding.
- Whether BNM issues quantum-readiness guidance for banks and payment operators, as the HKMA has done in Hong Kong.
- How quickly Malaysia’s share of post-quantum web traffic rises compared with its ASEAN neighbours.
Related on FinDeskAsia: How Malaysia’s payment system works · PayNet and the regulators
Sources: Bernama (November 2026) · The Star (November 2026) · Fintech News Malaysia (November 2026) · ProductNation (November 2026) · Lowyat.NET (November 2026) · Malay Mail (November 2026) · HKMA (November 2026)
