Introduction
With the introduction of the Personal Data Protection Amendment Bill 2024, Malaysia has taken a significant leap in aligning its data protection regulations with global standards. The updated provisions, set to take effect in early 2025, impose stricter obligations on organisations and expand the rights of individuals. For businesses, now is the time to start preparations to ensure compliance. In this article, we’ll explore the key changes and explain how organisations can stay ahead of the curve and achive PDPA compliance.
1. The Term “Data Controller” Replaces “Data User”
A pivotal change in the Amendment Bill is the replacement of the term “data user” with “data controller”. This update aligns Malaysia’s terminology with internationally recognised standards, such as the GDPR. The change emphasises the role of entities that determine the purposes and means of processing personal data.
For organisations, this shift is more than semantic. It underscores the heightened responsibility to ensure that data processing activities adhere to the principles of transparency, accountability, and purpose limitation. Businesses must revisit their policies and procedures to reflect their role as data controllers.
2. Mandatory Appointment of a Data Protection Officer (DPO)
Perhaps the most significant addition is the mandatory appointment of a Data Protection Officer (DPO). Every organisation handling personal data will need to designate a qualified individual to oversee compliance efforts. This aligns with global practices seen in regulations like the GDPR and Singapore’s PDPA.
The DPO will be responsible for monitoring data protection practices, providing advice, and acting as a point of contact for regulators and data subjects. Organisations should begin identifying suitable candidates or consider outsourcing this role to a professional service provider, such as Formiti. Our experienced team of global data privacy experts ensures seamless integration of DPO services tailored to your organisation’s needs in achieving PDPA compliance.
3. Enhanced Data Breach Notification Obligations
Under the amended PDPA, organisations will face stricter data breach notification requirements. The updated law mandates that data controllers report breaches to the Commissioner within a specified timeframe and notify affected individuals where their rights or freedoms may be at risk.
To comply, businesses must establish or update their data breach response plans. This includes training staff, implementing detection mechanisms, and maintaining clear reporting lines. Delayed or inadequate responses could lead to fines, penalties, and reputational damage.
4. Biometric Data
Biometric data, such as fingerprints, facial recognition, and voice patterns, will receive heightened protection under the Amendment Bill. As this category of data is particularly sensitive, the law imposes stricter processing requirements, including obtaining explicit consent from data subjects.
Organisations leveraging biometric technologies must ensure robust safeguards are in place, from secure storage solutions to encryption. Reviewing vendor agreements to confirm compliance with these enhanced protections is equally essential.
5. Data Portability Rights
The introduction of data portability rights allows individuals to request the transfer of their personal data to another service provider. This enhances consumer autonomy and competition but presents a challenge for businesses to ensure systems can facilitate such transfers efficiently and securely.
Preparing for this requirement involves evaluating existing data infrastructure and ensuring compatibility with the technical specifications for data transfer. Organisations may also need to provide clear procedures for handling data portability requests.
6. Cross-Border Transfers
The Amendment Bill imposes stricter conditions for cross-border data transfers, requiring organisations to ensure that the recipient country offers comparable levels of data protection. This change aims to safeguard personal data when processed internationally.
Organisations engaged in cross-border processing must assess their data flows and implement mechanisms like standard contractual clauses or binding corporate rules. It is essential to maintain thorough documentation demonstrating compliance with these requirements.
Why Start Preparing Now?
Compliance with the new amendments is not optional, and the timeline until early 2025 leaves little room for complacency. Organisations must act promptly to:
- Review and update internal policies.
- Implement necessary technical and organisational measures.
- Train staff on new compliance requirements.
- Appoint a qualified DPO or outsource the role to professionals.
How Formiti Can Help
At Formiti, we understand the complexities of navigating regulatory changes. Our comprehensive services are designed to support organisations in achieving and maintaining compliance with the updated PDPA. Whether you need an outsourced DPO, assistance with data protection impact assessments, or guidance on cross-border data transfers, our experts are here to help.
Don’t wait until the deadline approaches. Contact Formiti today to schedule a consultation and ensure your organisation is fully prepared to meet the new requirements of Malaysia’s Personal Data Protection Amendment Bill 2024.
Call to Action: Secure your compliance future with Formiti. Visit our website or contact usied DPO or outsource the role to professionals.ualifAppoint a qualified DPO or outsource the role to professionals.