Malaysia passes landmark legislation that allows data-sharing between Federal government agencies

Malaysia today passed a landmark legislation that facilitates data-sharing between Federal government agencies.

The passing of the Data Sharing Bill 2024 will overcome previous limitations with respect to data-sharing between government agencies.

Digital Minister Gobind Singh Deo, during the second and third reading of the legislation in the Dewan Negara this evening, said the passing of the new law was an essential step towards creating 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 Federal agencies and later consider expanding it to the states and beyond,” said Gobind.

The ministry also stated that the new legislation creates a process by which requests can be made for data by government agencies, and how such requests will be considered.

A National Data Sharing Committee will conduct a strict evaluation when an application is made according to the criteria set in the law, 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, the manner in which the requested data will be handled, and safeguards that will preserve the privacy and confidentiality of said data.

Whilst facilitating the sharing of data, emphasis is also given to ensure that the data is secure in that process. The law requires the committee to ascertain if the agency requesting the data has sufficient cybersecurity measures in place before a decision can be made to allow the agency to receive the data.

The new law also sets provisions for the handling of data to ensure personal data is protected throughout the data-sharing process. In the event of a breach, those found guilty will face a fine not exceeding RM1 million or imprisonment of not more than five years, or both, as per Clauses 17 and 23 of the new legislation.

Analysis of data is essential for technology such as artificial intelligence (AI), which Malaysia has been actively promoting over the past year through the establishment of the Digital Ministry. The new legislation will help accelerate the government’s aspirations to create an AI nation.

The new legislation is also timely to ensure that the country’s digital transformation is on the right track. The collection of data is expected to help the government introduce evidence-based policies and prevent duplication of data storage between agencies, which will help save time and costs.