The Cost of Non-Compliance: Why Ignoring PDPA 2024 Could Hurt Your Business

Regulatory changes are often seen as administrative burdens, but non-compliance with Malaysia’s Personal Data Protection Act (PDPA) 2024 could have severe consequences. With stricter enforcement, increased penalties, and heightened expectations around data governance, ignoring these updates isn’t just a minor oversight—it’s a financial and reputational risk your business can’t afford to take.

Real-World Examples of Data Breaches & Fines

When organisations fail to comply with data protection laws, the consequences are far-reaching. It’s not just about the fines (although they can be substantial); it’s the loss of trust, operational disruption, and long-term reputational damage that can cripple a business.

Consider the high-profile data breaches across Southeast Asia in recent years. A leading e-commerce platform in Malaysia suffered a data leak affecting millions of customers, leading to regulatory scrutiny and financial penalties. Meanwhile, a well-known Thai company was fined millions for failing to implement proper security measures, resulting in a massive personal data breach.

PDPA 2024 strengthens Malaysia’s data protection framework, imposing heavier fines and potential criminal liability for non-compliance. The question isn’t if businesses will be caught—it’s when.

Key Compliance Risks Under PDPA 2024

  1. Failure to Obtain Proper Consent
    If your organisation collects, processes, or shares personal data without explicit consent, you’re in violation. The era of ambiguous privacy policies is over—obtaining clear and informed consent is now a legal requirement.
  2. Inadequate Breach Response Plans
    Under PDPA 2024, organisations must report data breaches promptly. A lack of an incident response plan can lead to regulatory fines and lawsuits, not to mention the loss of customer trust.
  3. Weak Security Measures
    Cyber threats are evolving, and so are regulatory expectations. If your security infrastructure isn’t aligned with PDPA 2024 requirements, you’re leaving your organisation exposed to cyberattacks and legal repercussions.

How to Protect Your Business

Non-compliance isn’t an option. Here’s how your business can stay ahead:

  • Conduct Regular Compliance Audits
    Assess your data handling processes to ensure they align with PDPA requirements.
  • Implement Strong Access Controls
    The access control based on organisational needs should be enforced—grant access only to those who need it.
  • Deploy Prevention Technology
    Data Loss Prevention (DLP) solutions, encryption, and behavioural analytics can help detect and prevent breaches before they occur.
  • Train Your Employees
    Most data breaches stem from human error. Regular training ensures that employees understand their responsibilities and the risks of non-compliance.
  • Develop a Breach Response Plan
    Have a clear action plan in place to mitigate damage in the event of a data breach.

Regulatory enforcement is tightening, and businesses that fail to comply with PDPA 2024 risk severe consequences. Protecting personal data isn’t just about avoiding fines—it’s about preserving trust, maintaining operational integrity, and securing your company’s future.

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.