Malaysia's New Data Act: High Hopes, High Stakes

Published by The Star on 8 May 2025

by Thulasy Suppiah, Managing Partner

The recent enactment of the Data Sharing Act 2025 marks a significant step in Malaysia’s digital journey. The potential benefits are clear: enhanced public services through better agency coordination, data-driven decision-making, and a vital boost to our burgeoning AI ecosystem, aligning with the MADANI government’s aspirations. Creating a legal framework for inter-agency data sharing is indeed necessary.

However, as this Act takes its first steps, its success hinges critically on more than just legislative intent. For the public, the promise of efficiency must be balanced with robust assurance of security. We cannot overlook the context of past incidents involving significant leaks of Malaysians’ personal data allegedly linked to government systems. This history naturally fuels public apprehension.

It’s crucial to remember that the Personal Data Protection Act (PDPA) 2010 does not apply to federal or state governments. Therefore, the safeguards, evaluation criteria, and oversight mechanisms embedded within this new Data Sharing Act carry immense weight – they are the primary line of defence governing how citizen data is handled between government bodies.

While the establishment of the National Data Sharing Committee is welcome, its effectiveness will depend entirely on rigorous implementation and strict adherence to protocols. Simply having an Act is insufficient; the underlying cybersecurity infrastructure across all participating agencies must be demonstrably strong and resilient against breaches. Public confidence needs to be earned, not assumed.

Therefore, alongside implementing this Act, there must be a transparent commitment to significantly upgrading government digital infrastructure and cybersecurity capabilities. Assurances must be backed by visible action.

The Data Sharing Act 2025 provides a foundation. Now, the hard work begins: building a secure, trustworthy system that delivers the promised benefits without compromising the personal data Malaysians entrust to the government. Its success will ultimately be measured not just by shared data points, but by the public’s confidence in its protection.

© 2025 Suppiah & Partners. All rights reserved. The contents of this newsletter are intended for informational purposes only and do not constitute legal advice.

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