Data protection laws are evolving rapidly, and Malaysia’s Personal Data Protection Act (PDPA) 2024 introduces crucial amendments that businesses cannot afford to ignore. These changes are designed to enhance consumer rights, enforce stricter security measures, and impose harsher penalties for non-compliance. Understanding these updates and adjusting your data security strategy accordingly is essential to avoid legal risks and protect sensitive data.

5 Major Changes & Their Impact

1. Mandatory Data Breach Notification

Under PDPA 2024, organisations are now required to notify the authorities and affected individuals in the event of a data breach. Businesses must:

• Report incidents within the stipulated timeframe.
• Provide details on the nature of the breach and potential impact.
• Outline remedial actions taken to mitigate risks.

Impact: Delays or failure to notify can lead to penalties and reputational damage. Companies need to implement a robust incident response plan to detect, assess, and report breaches promptly.

2. Higher Penalties for Non-Compliance

Non-compliance with PDPA 2024 now comes with significantly higher fines and penalties, aimed at ensuring stricter enforcement of data protection laws.

Impact: Organisations can no longer afford to treat compliance as an afterthought. Proactive measures, such as regular audits and staff training, are crucial to avoiding financial and legal repercussions.

3. Enhanced Rights for Data Subjects

Individuals now have greater control over their personal data, including the right to:

• Access their data and request corrections.
• Request deletion of their personal information under specific conditions.
• Object to certain data processing activities.

Impact: Businesses must establish clear processes for handling data access and deletion requests. Failure to do so may result in legal action and loss of customer trust.

4. New Obligations for Data Processors

Third-party service providers that process personal data on behalf of businesses are now directly accountable under PDPA 2024.

Impact: Companies must ensure that their data processors comply with PDPA regulations by implementing contractual agreements, conducting due diligence, and monitoring compliance.

5. Stronger Data Governance Requirements

With increased emphasis on data security, businesses must adopt stricter data governance frameworks, including:

• Implementing encryption and access controls.
• Conducting regular security assessments.
• Ensuring staff are trained on data protection best practices.

Impact: Organisations that fail to strengthen their data security measures risk severe financial, legal, and reputational consequences.

How Businesses Should Respond

To stay compliant and protect sensitive data, businesses should:

• Conduct a Compliance Assessment: Evaluate current data protection policies and identify gaps in compliance.
• Strengthen Cybersecurity Frameworks: Implement security technologies such as Data Loss Prevention (DLP), encryption, and access controls.
• Review Contracts with Third-Party Providers: Ensure that all service providers adhere to PDPA 2024 requirements.
• Train Employees on Data Protection: Educate staff on their roles and responsibilities in safeguarding personal data.
• Develop a Data Breach Response Plan: Establish a clear protocol for detecting, reporting, and mitigating data breaches.

Conclusion & Call-to-Action

The amendments to PDPA 2024 reflect a growing emphasis on data security and privacy. Businesses that fail to comply face significant risks, from financial penalties to reputational damage. Now is the time to assess your compliance posture and implement stronger security measures.

For a more in-depth look at how to navigate PDPA 2024, download our guide. Need expert advice? Contact us at info@handd.com.sg or request a call back today.

Written by Alex Cruden, Director Consulting Services at HANDD Business Solutions.