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Malaysia’s Personal Data Protection Act 2010 (PDPA): A Summary

The Personal Data Protection Act 2010 (PDPA) is a crucial piece of legislation that regulates the collection, use, processing, and disclosure of personal data in commercial transactions within Malaysia. Here are the key points to understand about the PDPA:

Regulation of Personal Data

  • The PDPA governs the handling of personal data in all aspects of commercial transactions.
  • This includes any transaction related to:
    • Goods or services
    • Agencies
    • Investment
    • Finance
    • Banking
    • Insurance

Scope of Application

  • The PDPA applies to any data user within Malaysia who processes personal data.
  • It also extends to foreign entities that use equipment in Malaysia for processing personal data, unless it is solely for transit purposes.

International Transfers

  • Data can be transferred out of Malaysia if the recipient country has laws or regulations deemed equivalent or substantially similar to the PDPA.
  • However, as of now, no countries have been notified by the Minister as having adequate data protection laws in place.

Consequences of Non-Compliance

  • Failure to comply with the PDPA may result in a fine ranging from RM10,000 to RM500,000 and/or imprisonment for up to three years.
  • In addition, directors, officers, or managers responsible for managing an offending company can also be held liable if they were aware of the offense.

If you have any further questions regarding Malaysia’s PDPA or would like clarification on any specific points, feel free to ask!