Introduction

Malaysia's Personal Data Protection Act (PDPA) 2024 update marks a significant shift in regulatory accountability, dramatically increasing compliance obligations and risk exposure for data processors and supply chain partners. This article explores the impact of the updates, the new risk landscape—including large fines, practical implications, FAQs—and offers guidance on how data processors should update frameworks. The changes also directly affect requirements for intercompany agreements to support lawful cross-border data transfers.

PDPA 2024 Update: New Landscape

The 2024 amendments to Malaysia's PDPA directly apply data protection obligations to data processors, not just controllers. This means third-party vendors and contractors handling personal data now face statutory liability for non-compliance, aligned with international standards like GDPR. Previously, processors were indirectly regulated via contracts; now, they are legally obligated to uphold data security.​

Steeper penalties underscore the seriousness: maximum fines rise from MYR 300,000 to MYR 1,000,000 (about USD 235,000), with imprisonment terms extended from two to three years for severe breaches.​

Accountability Shift and Supply Chain Risks

Malaysia's PDPA now imposes a “security principle” directly on processors, compelling them to take robust technical and organizational measures, similar to controllers. This legislative shift means negligence anywhere in the supply chain, not just at the client organization, can result in enforcement actions and fines. If a vendor fails to protect personal data, the regulator (PDPC) can fine them directly.​

Mandatory appointment of a Data Protection Officer (DPO) for both controllers and processors further reinforces this accountability. The DPO is responsible for PDPA compliance and must be registered with the regulator by June 2025.​

Strengthening Data Processor Frameworks

To mitigate risks, data processors should urgently review and strengthen their data protection policies, controls, and operational practices. Recommended actions:

  • Appoint a qualified DPO and register the details with the PDP Commissioner.​
  • Enhance technical measures: tighten access controls, encryption, vulnerability management, and implement breach detection.
  • Update contracts and Standard Operating Procedures (SOPs) to align with PDPA requirements.
  • Regularly audit, train staff, and maintain incident response protocols for data breaches.
  • Ensure documentation and evidence of due diligence for all PDPA compliance actions.

Intercompany Agreements for Data Transfers

Companies transferring personal data across borders must ensure adequate protection and formalize data flows through robust intercompany agreements. Key requirements:​

  • TIA: Carry out Transfer Impact Assessments to prove “adequate level of protection” in destination jurisdictions.
  • Contracts must specify the security measures, compliance responsibilities, and data subject rights protections for all parties.
  • Agreements should include breach notification obligations and remedies, consistent with updated PDPA provisions.

Q&A: Malaysia PDPA 2024 for Data Processors

Q1. What is the biggest change for data processors in 2024?
A1. Data processors now have direct statutory obligations under the PDPA and can be fined up to RM 1,000,000 if found negligent.​

Q2. Who needs to appoint a Data Protection Officer and when?
A2. All controllers and processors must appoint a DPO by June 2025; details must be registered with the Commissioner.​

Q3. What practical steps should processors take to comply?
A3. Strengthen risk assessments, controls, breach procedures, staff training, and contractual commitments. Document everything to demonstrate compliance if investigated.​

Q4. How do intercompany agreements affect cross-border transfers?
A4. Agreements must explicitly detail data protection standards and support Transfer Impact Assessments for receiving jurisdictions, ensuring comparable standards to Malaysia's PDPA.​

Q5. Are there increased obligations for data breach notification?
A5. Yes. Controllers must notify the regulator within 72 hours of discovering a breach or risk further fines.​

Conclusion and Next Steps

The Malaysia PDPA 2024 update transforms the data protection compliance landscape by making processors directly accountable and expanding supply chain risk. For businesses, proactive risk management—including DPO appointment, updating operational frameworks, and strong intercompany agreements for data transfers—is essential for mitigating exposure to large fines and supporting responsible personal data handling.​

Processors and controllers should act now to review, update, and evidence PDPA compliance across all supply chain and data transfer activities.