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Compliance & Governance

Data Protection (PDPA)

Also known as: PDPA, Personal Data Protection Act

Data protection under the PDPA is the set of legal obligations governing how organisations collect, use, store and share personal data in commercial transactions.

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Malaysia's Personal Data Protection Act (PDPA) regulates the handling of personal data in commercial dealings, requiring consent, purpose limitation, security safeguards and rights for individuals to access and correct their data. In procurement, this affects supplier contacts, buyer user accounts, and any personal information exchanged through portals, tenders or onboarding forms.

Buyers should confirm that suppliers and technology providers handle personal data lawfully, especially where systems store contact details, payment information or employee records. Contracts often include data-protection clauses setting out responsibilities and breach notification. Choosing platforms with clear data-handling practices reduces exposure and supports the organisation's own compliance with the PDPA.

Frequently asked questions

What is the PDPA?
The Personal Data Protection Act (PDPA) is Malaysia's law governing how organisations collect, use, store and share personal data in commercial transactions, including consent, security and individual rights.
How does the PDPA affect procurement?
It applies to personal data handled in supplier onboarding, portals, tenders and payments, so buyers must ensure suppliers and platforms process that data lawfully and include appropriate data-protection clauses in contracts.

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