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Malaysia PDPA 

Personal Data Protection (Amendment) Act 2024

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What is the Personal Data Protection Act (PDPA) of Malaysia?

The Personal Data Protection Act (PDPA) of Malaysia is a legislative framework established under Act 709, aimed at regulating the processing of personal data in commercial transactions. The Act was originally enacted in 2010 and became effective on November 15, 2013 and was amended in 2024 to enhance its provisions in line with international standards and practices. The PDPA seeks to protect the privacy of individuals by imposing obligations on data controllers and data processors regarding the collection, use, disclosure, and storage of personal data.​

In addition to the text of the law and its amended version of 2024, Malaysia’s personal data protection landscape also includes the Personal Data Protection Code of Practice, introduced in 2017, which regulates the processing of personal data in commercial transactions by entities that hold licenses under the Communications and Multimedia Act 1998 (CMA).

Malaysia’s PDPA is one of the first comprehensive data protection laws in Southeast Asia, making Malaysia both a regional leader in the setting of legal standards for personal data protection, and a trendsetter that set the stage for other countries in the region to develop their own data protection laws.

 

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How does the Personal Data Protection Act (PDPA) of Malaysia define Personal Information and what are other key definitions?

Under the PDPA, ‘personal data’ is “any information that relates directly or indirectly to an individual who is identified or identifiable from that information or other information in the possession of the data controller. This includes sensitive personal data and expressions of opinion about the individual​.”

‘Sensitive personal data’ is defined here as “any personal data consisting of information as to the physical or mental health or condition of a data subject, his political opinions, his religious beliefs or other beliefs of a similar nature, the commission or alleged commission by him of any offence or any other personal data as the Minister may determine by order published in the Gazette,” and, as of the 2024 amendment, this includes biometric data, understood to mean “personal data resulting from technical processing related to the physical, physiological, or behavioral characteristics of a person​.”

A ‘data processor’ is “any person, other than an employee of the data user, who processes the personal data solely on behalf of the data user, and does not process the personal data for any of his own purposes” and a ‘data controller’ called a ‘data user’ before the 2024 amendment, is “a person who either alone or jointly or in common with other persons processes any personal data or has control over or authorizes the processing of any personal data, but does not include a data processor.”

Who does the Personal Data Protection Act (PDPA) of Malaysia apply to?

The Personal Data Protection Act (PDPA) of Malaysia applies to any individual or entity  who handles or controls the handling of personal data “in respect of commercial transactions” which are “any transaction of a commercial nature, whether contractual or not, which includes any matters relating to the supply or exchange of goods or services, agency, investments, financing, banking and insurance, but does not include a credit reporting business carried out by a credit reporting agency under the Credit Reporting Agencies Act 2010.”

Specific situations include either cases where you are based in Malaysia, in which case the PDPA applies to you if you're processing personal data within Malaysia, or where you're not based in Malaysia but use equipment in Malaysia to process personal data (like servers or computers), in which case the PDPA still applies to you, but you must appoint someone in Malaysia to represent you for legal purposes. However, if you're just passing through Malaysia, you are exempt from compliance with the PDPA.

Examples of who counts as being established in Malaysia include the following: 

  • You have a physical presence in Malaysia, i.e. an office or store.
  • Your business is registered in Malaysia under the Companies Act.
  • You’re part of a partnership or association formed under Malaysian law.
  • You have a regular office, branch, agency, or regularly conduct business in Malaysia, even if you're not officially registered there.

In addition to the above, the PDPA also applies to data controllers that have a license under the Communications and Multimedia Act 1998 (CMA), including network facilities providers, network services providers, applications service providers, and content applications service providers.

Who does the Personal Data Protection Act (PDPA) of Malaysia exempt?

Malaysia's data privacy law, the PDPA, does not apply to the following: 

  • the Federal Government and State Governments;
  • any personal data processed outside Malaysia unless that personal data is intended to be further processed in Malaysia;
  • personal data processed for personal, family, or household purposes, including recreational activities;
  • personal data used for journalistic, literary, or artistic purposes, intended for publication;
  • personal data processed solely for research, history, or statistics, as long as it doesn't identify individuals or cause harm;
  • personal data used for preventing or detecting crime, prosecuting offenders, or assessing taxes;
  • personal data processed for legal proceedings or obtaining legal advice;
  • personal data made public by the individual;
  • personal data processed for necessary regulatory functions.

 

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What are the requirements for businesses under Malaysia's Personal Data Protection Act?

Data controllers and processors have to comply with the Personal Data Protection Principles outlined in the text of the law. These are as follows: 

      • General Principle: Organizations must ensure that personal data is processed in a lawful and fair manner. The data collected should only be used for specific purposes that are explicitly stated and agreed upon by the individual (data subject).
      • Notice and Choice Principle: When collecting personal data, organizations must inform the individual why the data is being collected and how it will be used. The individual should also be given the option to either provide their data or refuse, and be made aware of the consequences of their choice.
      • Disclosure Principle: Organizations must not share personal data with third parties without the individual’s consent, unless required by law. Any data shared should be only what is necessary and for the purpose that was originally stated to the individual.
      • Security Principle: Organizations are required to take appropriate measures to protect personal data from unauthorized access, misuse, or loss. This includes implementing security practices and protocols to safeguard the data.
      • Retention Principle: Personal data should not be kept longer than necessary. Once the data is no longer needed for the purpose it was collected, it must be securely deleted or destroyed.
      • Data Integrity Principle: Organizations must ensure that personal data is accurate, complete, and up-to-date. Reasonable steps should be taken to correct any inaccurate or outdated information.
      • Access Principle: Individuals have the right to access their personal data held by an organization. They can request to review, update, or correct their data. Organizations must respond to such requests within a reasonable time frame.
      • Accountability Principle: Organizations are responsible for complying with the PDPA and must be able to demonstrate their compliance. This includes appointing data protection officers and maintaining records of data processing activities.

In addition to these, covered businesses must also appoint one or more data protection officers accountable for compliance with the Act, and in the event of a data breach, must notify the Commissioner “as soon as practicable” and the affected data subjects if a breach occurs, “where the personal data breach causes or is likely to cause any significant harm to the data subject, [...] in the manner and form as determined by the Commissioner without unnecessary delay.”

The Malaysian data privacy law also stipulates that certain classes of data controllers, as specified by the government, need to register with the supervisory authority, with all others having to follow the Act's rules without having to register. In addition to these, the Minister may require specific classes of data controllers to register after consulting with relevant parties. 

Data controllers required to register must follow a series of obligations related to the registration process, such as applying, paying a fee, and submitting necessary documents. The Commissioner may request additional information; failure to provide it will result in the application being withdrawn. The Commissioner may approve or deny the registration. If approved, a certificate is issued with possible conditions. Operating without required registration is a serious offense. 

Data controllers must renew their registration at least 90 days before expiration. The renewal may include changes to conditions, and the Commissioner can refuse renewal for non-compliance. The Commissioner can revoke registration for non-compliance or other reasons, but the data controller must be given a chance to explain. Continuing to operate without registration after revocation is an offense. If registration is revoked, the data controller must return the certificate within seven days. Failing to do so is an offense.

The Commissioner will maintain a Register of Data Controllers, listing those who have been registered and their details.

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What are the data subject rights under Malaysia's Personal Data Protection Act (PDPA)?

Data subjects have the following rights under Malaysia’s data privacy law: 

  • Right to Access;
  • Right to Correct; 
  • Right to Data Portability;
  • Right to Object to Processing Likely to Cause Damage or Distress;
  • Right to Object to Processing for Direct Marketing.

How to respond to consumer requests under Malaysia's PDPA?

The PDPA mandates that data controllers have to respond to a data subject access request within 21 days from the date of the request, but if they need more time, they must inform the data subject and extend the deadline by no more than 14 days. If they cannot comply with the request, data controllers have to inform the individual in writing, informing them of the reasons for the refusal. Examples where this may be the case include situations where providing the data would reveal information about another person, or if the request is deemed to be excessive or unreasonable.

For all other requests there is no timeframe mentioned by the text of the law. 

Last but not least, data controllers have to keep a record of all data subject requests as well as the decisions made for each for the purpose of transparency and accountability. 

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Personal Data Protection Act (PDPA) of Malaysia enforcement and penalties

Malaysia’s PDPA is enforced by the Personal Data Protection Department (PDP), an agency under the Ministry of Communications and Multimedia Commission (MCMC).

Penalties can go up to one million ringgit (approx. $ 228,000) or imprisonment for up to three years, or both, for non-compliance with the Act, and for data breaches,  these can go up to two hundred and fifty thousand ringgit (approx. $ 58,000) or imprisonment for up to two years, or both.

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How can Clym help?

Clym believes in striking a balance between digital compliance and your business needs, which is why we offer businesses the following:

  • All-in-one platform: One interface combining Privacy and Accessibility compliance with global regulations, at an affordable price;
  • Seamless integration into your website;
  • Adaptability to your users’ location and applicable regulation;
  • Customizable branding;
  • ReadyCompliance™: Covering 50+ data privacy regulations;
  • Six preconfigured accessibility profiles, as well as 25+ display adjustments that allow visitors to customise their individual experience.

You can convince yourself and see Clym in action by booking a demo or reaching out to us to discuss your specific needs today.

 

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FAQs about Malaysia's Personal Data Protection Act (PDPA)

What does the Personal Data Protection Act (PDPA) of Malaysia apply to?

The Personal Data Protection Act (PDPA) of Malaysia applies to any individual or entity  who handles or controls the handling of personal data “in respect of commercial transactions” which are “any transaction of a commercial nature, whether contractual or not, which includes any matters relating to the supply or exchange of goods or services, agency, investments, financing, banking and insurance, but does not include a credit reporting business carried out by a credit reporting agency under the Credit Reporting Agencies Act 2010.” In addition to this, the PDPA also applies to data controllers that have a license under the Communications and Multimedia Act 1998 (CMA), including network facilities providers, network services providers, applications service providers, and content applications service providers.



What is exempt under Malaysia's personal data protection law?

Malaysia's privacy law does not apply to the following: 

  • the Federal Government and State Governments;
  • any personal data processed outside Malaysia unless that personal data is intended to be further processed in Malaysia;
  • personal data processed for personal, family, or household purposes, including recreational activities;
  • personal data used for journalistic, literary, or artistic purposes, intended for publication;
  • personal data processed solely for research, history, or statistics, as long as it doesn't identify individuals or cause harm;
  • personal data used for preventing or detecting crime, prosecuting offenders, or assessing taxes;
  • personal data processed for legal proceedings or obtaining legal advice;
  • personal data made public by the individual;
  • personal data processed for necessary regulatory functions.

 personal data protection law exempts the processing of personal data for the purposes of defence, national and public security nor in pre-trial and criminal proceedings, unless otherwise provided by a separate law, and the processing of personal data by a natural person in the course of a personal activity.

What data subject rights does the Personal Data Protection Act (PDPA) of Malaysia grant?

Data subjects have the following rights under Malaysia’s data privacy law: 

  • Right to Access;
  • Right to Correct; 
  • Right to Data Portability;
  • Right to Object to Processing Likely to Cause Damage or Distress;
  • Right to Object to Processing for Direct Marketing.
What are the penalties for non-compliance with Malaysia's PDPA?

Penalties for non-compliance with Malaysia's data privacy law can go up to one million ringgit (approx. $ 228,000) or imprisonment for up to three years, or both, for non-compliance with the Act, and for data breaches,  these can go up to two hundred and fifty thousand ringgit (approx. $ 58,000) or imprisonment for up to two years, or both.






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