A new Malaysian law has been passed which allows data sharing between Federal Government agencies

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Today, the Malaysian government has passed a new legislation called the Data Sharing Bill 2024. As the name suggests, this new bill will enable data sharing between the Federal Government agencies. 

According to the press release sent by the government, the Data Sharing Bill 2024 passes the landmark law as it overcomes previous limitations in respect of data sharing between the said agencies. That is not to say the agencies can just simply share the data with each other, but rather a process by which requests can be made for data, and how such requests will be considered.

To monitor this, a National Data Sharing Committee will conduct a strict evaluation when an application is made according to the criteria set in the Act, in deciding whether or not the data requested can be shared. It will consider, among others, the nature of the data, the purpose for which the data is requested, how the data requested will be handled, and safeguards that will preserve the privacy and confidentiality of the said data.

Additionally, the law requires the committee to check thoroughly if the agency requesting the data has sufficient cybersecurity measures in place before a decision can be made, to allow the agency to receive data. Should there be a breach, penal consequences will be executed, as those found guilty will face a fine not exceeding RM1 million or imprisonment of not more than five years, or both, as per the Act (Clauses 17 and 23).

During the second and third reading of the legislation in Dewan Negara yesterday (19 December), Minister of Digital Gobind Singh Deo said the passing of this law is an essential step. He emphasized that it can create an ecosystem where innovation thrives, allowing digital services and solutions to be put into effect quickly and efficiently.

“This, at the same time, ensures the process is secure. We will start with the Federal agencies and later consider expanding it to the states and beyond,” said Gobind.

 

This new legislation is the third among bills tabled by the Ministry of Digital in just a year after its creation. The others were amendments to the Personal Data Protection Act 2010 in July 2024, and the new Cyber Security Act 2024 that came into effect on 26 August 2024.