With recent updates, non-compliance with the PDPA 2010 carries the risk of among the steepest financial consequences for businesses in Malaysia.
But the true cost of non-compliance goes further, as PDPA penalties also include individual prison sentences along with fallout that can cripple a company’s ability to function.
Maximum penalties for breaching the PDPA
The updated PDPA carries the following fines and imprisonment sentences:
- General non-compliance with PDPA principles: Fines up to RM1,000,000 and / or imprisonment up to 3 years
- Processing personal data without consent: Fines up to RM500,000 and / or imprisonment up to 3 years
- Failure to appoint a Data Protection Officer: Fines up to RM250,000 and / or imprisonment up to 2 years
- Failure to report data breaches: Fines up to RM250,000 and / or imprisonment up to 2 years
These are some of the most severe regulatory consequences Malaysian businesses can face, while the prison is the PDPA penalty for individual directors, shareholders, and company officers.
Hidden costs of PDPA non-compliance
The full cost of a PDPA penalty goes beyond fines and prison sentences, threatening a business’ operations, customer relationships, and market reputation.
| Risk Area | Consequences |
| Business impact & operational disruption | Investigations can halt operations, suspend data processing, and force audits that drain time and resources. Partnerships may stall or require renegotiation. |
| Reputational damage & customer trust | Violations quickly erode trust and attract negative publicity. Rebuilding confidence takes significant time and effort. |
| Regulatory scrutiny & compliance burden | Organisations may face ongoing monitoring, mandatory reporting, and frequent audits that increase costs and disruption. |
| Civil liability & legal exposure | Affected individuals may sue for compensation, leading to extra damages, legal costs, and potential class action suits. |
Appoint a DPO for full PDPA compliance services
Data Protection Officers (DPOs) ensure organisations adhere to PDPA requirements across business operations at the fraction of the cost of a single regulatory fine, all while providing ongoing protection against compliance risks.
We can help you navigate the PDPA requirements, assess your current compliance readiness, and implement practical solutions that protect both your regulatory standing and business interests.
Reach out to ensure your organisation is prepared for Malaysia’s enhanced personal data protection landscape.
