Does My Business Need a Data Protection Officer (DPO) Malaysia?
- Chow Ping
- 3 hours ago
- 5 min read
If you’re reading this, it means your business is growing and processing enough data that compliance matters.
It’s a good problem to have!
🎉🎉🎉
But now comes the part that probably brought you here: figuring out whether you need to hire a Data Protection Officer (DPO) in Malaysia.
As of June 1, 2025, certain businesses are legally required to appoint a DPO.
Today, we'll walk you through exactly who needs one, what they do, and whether you should hire internally or outsource.
Do You Actually Need a Data Protection Officer (DPO) Malaysia? The 3-Trigger Checklist
You need to appoint a Data Protection Officer if your business meets ANY ONE of these criteria:
1. Processing personal data of 20,000+ people annually
This includes everyone whose data you handle — customers, employees, vendors, contractors, anyone.
Running an e-commerce site with 25,000 customers? You've hit this threshold.
2. Processing sensitive personal data of 10,000+ people
Sensitive data includes health information, financial data, biometric data, religious beliefs, and credit records.
If you're in healthcare, finance, or any industry handling this type of information for 10,000+ individuals, you need a DPO.
3. Regular and systematic monitoring activities
This applies if you're operating CCTV systems, using tracking for behavioral advertising, monitoring through connected devices, or conducting ongoing surveillance.
If you checked ANY of these boxes, yes, you legally need a DPO.
When in doubt? Better safe than sorry. The penalties for non-compliance can reach up to RM1,000,000!
What IS a Data Protection Officer?
Think of your DPO as your company's "data protection bodyguard."
They're responsible for ensuring your business complies with Malaysia's data protection laws. They act as the bridge between your business operations, the Personal Data Protection Commissioner, and your customers.
But make no mistake: This isn't just a fancy title you give someone to check a compliance box.
A DPO comes with real, substantial responsibilities. They need expertise, the authority to challenge questionable practices, and direct access to senior management.
Appointing your intern as DPO because they're "good with computers" isn't going to cut it. Sorry!
Should You Hire or Outsource for Your Data Protection Officer Needs?
Let’s unpack this.
Option 1: Hiring Someone Internally
You can appoint an existing employee from your legal team, HR, IT, or compliance unit. The role can be part-time or full-time.
Requirements they must meet:
Malaysian resident (180+ days/year) OR easily contactable
Fluent in both Bahasa Melayu AND English
Knowledge of PDPA and related regulations
Understand your business operations
Technical awareness of IT and data security
High integrity and independence
The advantage? They already understand your company culture.
The disadvantage? Privacy law is a specialized niche most businesses don't have.
Option 2: Outsourcing DPO Services
This is often the smarter move for companies without internal legal expertise.
You contract a qualified firm to serve as your DPO. They handle all responsibilities while you focus on running your business.
Key points:
One DPO can serve multiple companies (cost-effective!)
Same requirements apply as internal appointees
You retain ultimate accountability
Minimum 2-year term recommended for stability
Which Should You Choose?
Let's be honest. If you don't have a dedicated legal team specializing in privacy law, outsourcing makes more sense.
Privacy law is complex and constantly evolving. Data breach response requires immediate expertise. Compliance audits demand experience.
Outsource if:
You lack internal privacy law expertise
You want cost-effective compliance
You need immediate access to experienced professionals
Hire internally if:
You have qualified staff who meet all requirements
Your business needs daily oversight
You can provide necessary resources and training
What Your DPO Actually Does
Your DPO has seven core responsibilities:
1. Advisory Role - Provide guidance on PDPA compliance across all operations
2. Compliance Audits - Conduct gap analysis and identify risks
3. Policy Development - Draft and revise data protection policies and notices
4. Training - Teach your team about data protection obligations
5. Data Breach Response - Manage breaches (notify PDP Commissioner within 72 hours if 1,000+ people affected, notify individuals within 7 days if significant harm)
6. Handle Data Subject Requests - Manage access, correction, and portability requests
7. Liaise with PDP Commissioner - Represent your company with regulators
Your DPO is your company's data protection lawyer, auditor, trainer, crisis manager, and government liaison all rolled into one.
What Happens After Appointment?
Within 21 days, you must register your DPO at http://daftar.pdp.gov.my
Details to include:
Full name and qualifications
Contact details and residency status
Company registration details
But don't wait 21 days to do everything else. These need to happen right away:
Create a dedicated DPO email (separate from personal/work email like dpo@yourcompany.com)
Publish DPO contact info on your website, privacy notices, and security policies
Provide adequate resources - Budget, tools, staff support, and direct access to senior management
Ensure proper training - Keep DPO updated on evolving regulations
What If You Don't Comply (The Penalties)?
Okay, time for the scary part. What happens if you skip all this or mess it up?
Financial:
Fines up to RM1,000,000
Potential imprisonment for egregious cases
Administrative penalties that add up quickly
Ongoing regulatory monitoring
Operational:
Regulatory audits disrupting your business
Delayed breach notifications compounding penalties
Inadequate handling of data subject requests
Reputational damage destroying customer trust
Remember how LHDN doesn't play around with tax non-compliance? The Personal Data Protection Commissioner has the same energy.
They're regulators with enforcement powers, and they. Will. Use. Them.
Common Questions
Can my existing employee be the DPO?
Yes, if they meet all requirements. They can have other duties too, as long as there's no conflict of interest.
Can I outsource to a foreign company?
No. Your DPO must be a Malaysian resident or easily contactable within Malaysia.
What if I'm not sure if I've hit the thresholds?
Audit your data processing activities. Count ALL data subjects — customers, employees, vendors, contractors, everyone. When in doubt, consult a professional.
Can one DPO serve multiple companies?
Yes, especially common with outsourced services. This makes it cost-effective for smaller businesses.
What Your DPO Does When a Data Breach Happens
When do you need to notify people about a breach?
Scenario 1: Big breach (1,000+ people affected) Notify the Commissioner within 72 hours, even if nobody got hurt.
Scenario 2: Harmful breach (any number of people) If the breach causes or could cause "significant harm," you must notify BOTH:
The Commissioner (within 72 hours)
The affected individuals (within 7 days after notifying the Commissioner)
What counts as "significant harm"?
Physical harm, financial loss, credit damage, identity theft, or reputational damage.
The bottom line: Small breach with no harm? You might be fine. Big breach OR harmful
breach? Your DPO needs to act fast.
If your business processes personal data for 20,000+ people, sensitive data for 10,000+ people, or conducts regular monitoring, you legally need a DPO
The role has real responsibilities. You can hire internally or outsource.
But privacy law is a niche specialty. Most businesses lack in-house expertise and data breaches require immediate expert response.
But here's the good news: you don't have to figure this out yourself.
Want to focus on your business while we handle the compliance stuff?
We’ve got you. Chat with us now:
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