Cloud computing is a major internet-based technology that has transformed the way in which data is stored. Due to its ubiquitous use, countries have enacted various legislations to prevent the abuse of personal data by unauthorized parties. Cloud computing activities involving personal data must be subject to such restrictions and comply with measures imposed by the authorities. This research evaluates the Malaysian Personal Data Protection Act 2010 and the EU Data Protection Directive 1995 in order to establish whether these regulations adequately address issues related to cloud computing. It also explores whether legal issues of cloud computing affect the way personal data is handled and managed. The findings show that while the PDPA 2010 satisfies basic data protection issues in Malaysia, a review of the act is necessary to meet the latest security and privacy protection demands arising from the use of cloud computing technology.