| Privacy Matters DLA Piper's Global Privacy and Data Protection Resource Tue, 04 Mar 2025 12:17:07 +0000 en-US hourly 1 https://wordpress.org/?v=6.8&lxb_maple_bar_source=lxb_maple_bar_source https://privacyblog.dlapiperblogs.com/wp-content/uploads/sites/32/2023/07/cropped-Favicon_512x512-32x32.gif | Privacy Matters 32 32 Malaysia: Guidelines Issued on Data Breach Notification and Data Protection Officer Appointment https://privacymatters.dlapiper.com/2025/03/malaysia-guidelines-issued-on-data-breach-notification-and-data-protection-officer-appointment/ Tue, 04 Mar 2025 12:16:46 +0000 https://privacymatters.dlapiper.com/?p=7560 Continue Reading]]> Following Malaysia’s introduction of data breach notification and data protection officer (“DPO”) appointment requirements in last year’s significant amendments to the Personal Data Protection Act (“PDPA”) (click here for our summary), the Personal Data Protection Commissioner of Malaysia (“Commissioner”) recently released guidelines that flesh out such requirements, titled the Guideline on Data Breach Notification (“DBN Guideline”) and the Guideline on Appointment of Data Protection Officer (“DPO Guideline”). With the data breach notification and DPO appointment requirements set to come into force on 1 June 2025, organisations subject to the PDPA, whether data controllers or processors, are recommended to understand and adapt to these guidelines to ensure compliance.

DBN Guideline

When must a personal data breach be notified to the regulator and affected data subjects?

A data controller must notify a personal data breach to both the Commissioner andaffected data subjects if it causes or is likely to cause “significant harm”, which includes a risk for any of the following:

  • physical harm, financial loss, a negative effect on credit records, or damage to or loss of property;
  • misuse of personal data for illegal purposes;
  • compromise of sensitive personal data;
  • combination of personal data with other personal information that could potentially enable identity fraud; or
  • (for the purpose of notification to the Commissioner only) a breach of “significant scale”, i.e. involving more than 1,000 affected data subjects.

What is the timeframe to make data breach notifications?

The timeframe for notifications is as follows:

  • Notification to the Commissioner: as soon as practicable and within 72 hours from the occurrence of the breach. If notificationfails to be made to the Commissioner within 72 hours, a written notice detailing the reasons for the delay and providing supporting evidence must be submitted; and
  • Notification to affected data subjects: without unnecessary delay and within seven days of notifying the Commissioner.

What are the other key obligations related to personal data breaches?

A data controller should:

  • DPA:  contractually obligate its data processor to promptly notify it of a data breach and to provide it with all reasonable and necessary assistance to meet its data breach notification obligations;
  • Management and response plans: put in place adequate data breach management and response plans;
  • Training: conduct periodic training as well as awareness and simulation exercises to prepare its employees for responding to personal data breaches;
  • Breach assessment and containment: act promptly as soon as it becomes aware of any personal data breach to assess, contain, and reduce the potential impact of the data breach, including taking certain containment actions (such as isolating compromised systems) and identifying certain details about the data breach in its investigation; and
  • Record-keeping: maintain a register of the personal data breach for at least two years to document the prescribed information about the data breach.

DPO Guideline

Who are required to appoint DPOs?

An organisation, in the role of either a data controller or a data processor, is required to appoint a DPO if its processing of personal data involves:

  • personal data of more than 20,000 data subjects;
  • sensitive personal data including financial information of more than 10,000 data subjects; or
  • activities that require “regular and systematic monitoring” of personal data.

Who can be appointed as DPOs?

DPOs may be appointed from among existing employees or through outsourcing services based on a service contract. They must:

  • Expertise: demonstrate a sound level of prescribed skills, qualities and expertise;
  • Language: be proficient in both Malay and English languages; and
  • Residency: be either resident in Malaysia or easily contactable via any means.

What are the other key obligations related to DPO appointments?

A data controller required to appoint a DPO should:

  • Notification: notify the Commissioner of the appointed DPO and their business contact information within 21 days of the DPO appointment;
  • Publication: publish the business contact information of its DPO through:
  • its website and other official media;
  • its personal data protection notices; or
  • its security policies and guidelines; and
  • Record-keeping: maintain records of the appointed DPO to demonstrate compliance.

A data processor required to appoint a DPO should comply with the publication and record-keeping obligations above in relation to its DPO.

Next Steps The new guidelines represent a significant step in the implementation of the newly introduced data breach notification and DPO appointment requirements. All organisations subject to the PDPA, whether data controllers or processors, should carefully review the guidelines and take steps to ensure compliance by 1 June 2025. This includes updating relevant internal policies (such as data breach response plans and record-keeping and training policies) and contracts with data processors to align with the guidelines. Additionally, organisations should assess whether a DPO appointment is necessary and, if so, be prepared to complete the appointment and notification processes and update their privacy notices, websites and other media to include DPO information.

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VIETNAM, MALAYSIA AND INDONESIA: what you need to know about the new SE Asia data protection laws https://privacymatters.dlapiper.com/2024/10/vietnam-malaysia-and-indonesia-what-you-need-to-know-about-the-new-se-asia-data-protection-laws/ Thu, 31 Oct 2024 08:38:35 +0000 https://privacymatters.dlapiper.com/?p=7480 Continue Reading]]> It’s the turn of South-East Asian countries to update their data protection laws. Here is our summary of the proposed new data protection laws in Vietnam, Malaysia and Indonesia. Organisations are advised to update their data protection compliance programmes as soon as possible to reflect these developments.

Vietnam

Vietnam issued its first draft of a new Personal Data Protection Law (“PDPL”) in September 2024, for public consultation. The PDPL is anticipated to be adopted in May 2025, and it is tentatively scheduled to come into effect on 1 January 2026. The draft PDPL aims to create a more robust framework for data protection in Vietnam by unifying, clarifying, enhancing and supplementing the existing data protection rules set out in Vietnam’s existing Personal Data Protection Decree (“PDPD”). It remains unclear how the PDPD and draft PDPL will work together in practice, although some commentators suggest the PDPL will supersede the PDPD.

In addition to setting out eight personal data protection principles, the draft PDPL focuses on discussing specific compliance requirements for a number of processing activities and industries, including direct marketing, behavioural advertising, big data, AI, cloud computing, employee monitoring and recruitment, financial and credit information, health, insurance and social media. Key highlights proposed in the draft PDPL include (this is not a comprehensive list):

  • Extra-territorial effect: the draft PDPL extends the scope under PDPD to cover processing of foreigners’ personal data within Vietnam.
  • Consent: like the PDPD, consent remains the key legal basis for data processing, and separate consents are required for specific data processing activities.
  • Clarified definitions: the draft PDPL clarifies the distinction between ‘basic personal data’ from ‘sensitive personal data’. New definitions are also introduced, including, amongst others, ‘developers’ and ‘personal data protection organization’. The data protection authority – currently known as A05 – would change its name if the draft PDPL is implemented.
  • Updates to DPIA/TIA dossier filings: the now-familiar data processing impact assessment dossiers (“DPIA Dossiers”) for controllers and processors and transfer impact assessment for transferors (“TIA”) would have to be updated upon certain material change to the organisation were the draft PDPL to be implemented.
  • Data protection department: companies would be required to have a data protection department overseeing personal data processing (although this could be outsourced to external service providers), as well as an expert (like a DPO) meeting certain eligibility criteria, with an initial short-term (two-year) exemption for new small businesses.
  • Certification mechanism: the draft PDPL would introduce a data protection certification scheme, whereby certain organisations could earn trust ratings based on an assessment of their personal data protection practices.
  • Breach reporting deadlines: the timescale for notifying authorities of breaches of personal data protection regulations is clarified as being 72 hours.

Malaysia

Significant changes to Malaysia’s Personal Data Protection Act (“PDPA”) were recently passed via the Personal Data Protection (Amendment) Act (subject to royal assent), and are anticipated to come into effect soon. The PDPA is now quite old (first passed in 2010), and so the amendments are largely to update the Malaysia data protection framework, to align it with more modern data protection laws elsewhere in Asia. The key amendments are:

  • mandatory breach notification;
  • mandatory appointment of DPOs;
  • direct obligations on data processors;
  • data portability rights for data subjects;
  • change of “data user” terminology to the more familiar “data controller”;
  • expanding sensitive personal data to include biometric data;
  • removing rights of deceased individuals re their personal data;
  • increased penalties (now fines of up to MYR1,000,000 and/or imprisonment of up to three years); and
  • updating the cross-border data transfer framework, to remove the “whitelist” of approved jurisdictions, and instead allowing transfers to jurisdictions with equivalent standards of protection. 

Besides the amendments to the PDPA, the Commissioner will develop guidelines to supplement the PDPA. The guidelines will cover areas including data breach notification, appointment of data protection officer, data portability, cross border data transfer, data protection impact assessment, privacy by design, and profiling and automated decision making.

Indonesia

Finally, a reminder that Law No.27 of 2022 on Personal Data Protection (“PDP Law”), Indonesia’s first omnibus data protection law, came into full effect, after a two-year grace period, on 17 October 2024. For further information about the compliance obligations introduced by the PDP Law, please see our earlier updates Indonesia: prepare now for the new Personal Data Protection Law | Privacy Matters and INDONESIA: Personal Data Protection Law PDPL Now in Force | Privacy Matters.

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