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Managing the personal data of users is usually regulated by law everywhere in the world today. In Malaysia, businesses are required to comply with the Personal Data Protection Act (PDPA) of 2010, which regulates the collection, use, and disclosure of personal data. The PDPA applies to any individual or organization that processes personal data in the course of commercial transactions.
Failing to comply with the PDPA can result in severe legal and financial consequences. Businesses may face fines of up to RM500,000 and imprisonment of up to three years for non-compliance. In addition, businesses may face reputational damage and loss of customer trust, which can have significant financial implications in the long term.
Users are also becoming increasingly aware of the importance of their personal data privacy. According to a survey conducted by the Centre for Governance and Political Studies in Malaysia, 91% of internet users are concerned about their online privacy and data protection (CGPS, 2018). This means that businesses that collect personal data must take the necessary steps to address these concerns and build trust with their users.
In her book “The Privacy Engineer’s Manifesto”, Michelle Finneran Dennedy emphasizes the importance of building trust with users through transparency and accountability. She states that “privacy is not just a legal obligation, it is a human rights issue” (Dennedy, 2014). Businesses that take a proactive approach to protecting user privacy will not only build trust with their users but also position themselves as leaders in their industry.
The data that businesses collect may include various personal information, and could also include sensitive information such as financial information, medical records, and browsing history. The use of this data can range from marketing to product development to personalization of user experience. However, without proper safeguards in place, this data can be misused or even stolen, causing harm to individuals and businesses alike.
9 March 2023
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