Introduction

Malaysia PDPA 2010 is a crucial legislation aimed at safeguarding individual privacy while providing a structured framework for organisations handling personal data. Businesses in Malaysia face an increasingly complex regulatory environment concerning personal data management.

This guide offers a comprehensive exploration of the PDPA, detailing its scope, principles, compliance steps, and more.

By the end of this article, you will understand how compliance with the PDPA not only ensures legal adherence but also builds trust with your stakeholders, enhances operational efficiency, and unlocks sustainable growth opportunities.

Historical Context and Legal Foundation of Malaysia PDPA 2010

The PDPA 2010 was introduced as Malaysia’s first dedicated law governing the protection of personal data in commercial transactions. Enacted on 15 November 2013, the legislation aligns the country with global data protection trends and addresses rising concerns about privacy breaches, data misuse, and inadequate regulation.

Businesses were given a grace period of 24 months to comply, reflecting its emphasis on fostering robust data management practices.

Today, the Act sits at the heart of Malaysia’s data privacy framework, ensuring the ethical collection, usage, and storage of personal information.

Key Terms and Definitions under PDPA

Understanding key terms is vital for interpreting the PDPA effectively. Here are some important definitions:

• Personal Data: Any information related to an identifiable individual, such as names, contact details, financial records, and biometric data.
• Processing: Any operation performed on personal data, from collection and storage to analysis and deletion.
• Data Controller: An entity or individual processing personal data for commercial purposes, typically businesses and organisations.
• Data Subject: The individual whose personal data is being processed.
• Consent: A voluntary expression of willingness by the data subject for their information to be processed under specific terms.

Scope and Application of the Malaysia PDPA 2010

The PDPA applies to all Data Controllers involved in commercial transactions in Malaysia. This includes both private companies and organisations processing customer or employee data.

However, certain entities, such as the Federal and State Governments, are exempt. Additionally, individuals collecting data for personal use or household activities are excluded from the Act’s coverage.

The extraterritorial impact of the PDPA means that foreign companies dealing with personal data in Malaysia must also comply.

Whether it’s local SMEs or multinational corporations, compliance is non-negotiable to avoid legal and reputational risks.

Read also: Governance, Risk Management, and Compliance (GRC) in Malaysia: Key Insights and Best Practices

The Seven Data Protection Principles

The PDPA 2010 outlines seven data protection principles that form the foundation of responsible data management.

1. General Principle

Data should only be processed when necessary and with the data subject’s consent unless other exceptions (e.g., legal obligations) apply.

2. Notice and Choice Principle

Data Controllers are required to inform individuals about the purposes of data collection and whether disclosure happens to third parties.

3. Disclosure Principle

Personal data must not be disclosed to third parties without prior consent or legal authorisation.

4. Security Principle

Organisations must implement robust measures to protect against data breaches, including encryption and access controls.

5. Retention Principle

Data must not be kept longer than necessary for its intended purpose and should be properly destroyed once it is no longer required.

6. Data Integrity Principle

Data must be accurate, complete, and kept up-to-date to prevent errors.

7. Access Principle

Individuals have the right to access their data and request corrections for inaccuracies.

These principles promote transparency, accountability, and security in handling personal data, making them critical for business compliance.

Rights of Data Subjects vs Obligations of Data Controllers

The PDPA helps establish a fair balance between protecting individuals’ rights and ensuring businesses meet their responsibilities.

Rights of Data Subjects

• Access to personal data records.
• Correction of inaccuracies in their information.
• Withdrawal of consent at any stage.

Obligations of Data Controllers

• Securely notify users why their data is needed.
• Implement stringent security protocols to guard sensitive information.
• Avoid unnecessary disclosure or misuse of the data.

Failure to meet these conditions can seriously damage trust, inviting penalties and legal challenges.

PDPA Compliance in Malaysia: What Companies Must Do

To remain compliant, businesses must be proactive in implementing measures specific to the Malaysia PDPA 2010. Here’s what your company should focus on:

• Draft comprehensive internal policies that govern data-handling activities.
• Establish transparent consent mechanisms for data collection and processing.
• Secure agreements with third-party processors involved in handling personal data.
• Strengthen data security systems like encryption and access control.
• Provide training for employees on best practices to mitigate risks.

Taking such proactive steps ensures your company not only avoids hefty penalties but also creates a more efficient and trusted operational framework.

Enforcement, Penalties & Real-World Cases

The Personal Data Protection Commissioner (JPDP) oversees the enforcement of the PDPA. Its responsibilities include monitoring organisations, handling complaints, and imposing penalties.

Key offences under the Act include unlawful data collection, breach of consent, and allowing data leakage.

Read also: Best Company Secretary Services KL: Why Local & Foreign Businesses Choose InCorp Global’s Premier Solutions

Penalties

Under the Personal Data Protection (Amendment) Act 2024, several key updates to penalties have been introduced:

• Effective April 1, 2025, the maximum fine for violating the Personal Data Protection Principles has been significantly increased to RM1,000,000 (one million Ringgit Malaysia). Meanwhile, the maximum imprisonment period for such breaches remains unchanged at up to three years.
• Effective June 1, 2025, a mandatory data breach notification requirement will come into effect. Non-compliance with this obligation may result in a fine of up to RM250,000 and/or imprisonment of up to two years.

These updates underline the importance of compliance with data protection regulations and emphasize the need for organisations to prioritise safeguarding personal data.

Notable Cases in Malaysia

• E-commerce Data Breach: A company received a substantial penalty after a major breach exposed customer information due to weak data security.
• Marketing Consent Misuse: A business was fined for sending unauthorised promotional emails, underlining the value of explicit consent.

Conclusion

The Malaysia PDPA 2010 (Personal Data Protection Act 2010) is foundational for safeguarding personal data in Malaysia. With the introduction of the updated Personal Data Protection (Amendment) Act 2024, businesses must now align with the latest requirements to ensure compliance.

By adhering to these regulations, your business not only mitigates potential risks but also gains a strategic edge by earning customer trust and enhancing operational transparency.

Adopt compliance today and secure a competitive tomorrow! Connect with our consultants today.

About In.Corp Global Malaysia
In.Corp Global Malaysia, an Ascentium Company, is a trusted corporate service provider offering end-to-end business solutions, including company incorporation, compliance, accounting, taxation, and ESG advisory. With deep local expertise and a strong regional network, we help businesses navigate Malaysia’s evolving regulatory landscape. Contact us to learn more.