The Data Sharing Bill 2024 (“Bill”) was passed by the Dewan Rakyat (House of Representatives) on 12 December 2024. The Bill will next be presented to the Dewan Negara (Senate), and if passed, for Royal Assent. Thereafter the Bill will become law upon its being gazetted and will come into operation on a date to be appointed by the Minister of Digital.
 
The Bill aims to establish a comprehensive framework for data sharing among public sector agencies.
 
For the purposes of the Bill, a “public sector agency” means (a) the government agency in charge of the public services referred to in Article 132(1) of the Federal Constitution¹, except for joint public services and the public service of each State; and (b) any statutory authority that exercises powers vested in it by a federal law.
 
The Bill provides for, among others, the following:
 
Establishment of the National Data Sharing Committee
 
The Bill establishes the National Data Sharing Committee (“Committee”), which will be responsible to the Cabinet. The Committee will include representatives from various ministries and is tasked with formulating policies and strategies for data sharing, overseeing the implementation of the Act, and ensuring the privacy and confidentiality of data.
 
Duties and Powers of the Director General of the National Digital Department
 
The Director General of the National Digital Department (“Director General”) will be responsible for implementing the policies and strategies formulated by the Committee, coordinating and facilitating data sharing, issuing guidelines and circulars, advise the Committee on matters related to data sharing.
 
Data Sharing Provisions
 
The Bill introduces provisions on data sharing where public sector agencies may request data from other agencies, and also outline the purposes for which data may be shared, and the evaluation and response of the public sector agency receiving a data request.
 
The Bill also sets out the circumstances where data sharing can be refused e.g. if it discloses confidential sources, breaches legal privileges, involves national security, or if the requesting agency lacks appropriate security measures. Data providers and data recipients also have certain duties relating to data sharing under the proposed Act.
 
Other provisions under the Bill include the duty of a third party to protect the shared data, restriction of using or disclosing the shared data under the proposed Act other than for the purpose for which the data is shared, requirement to report details relating to data sharing to the Director General, among others.
 
Comments
 
The Bill aims to streamline and secure data sharing among public sector agencies in Malaysia, ensuring that data is shared efficiently while maintaining privacy and security. The Chairman of the Special Select Committee on Infrastructure, Transportation and Communication, Yusuf Wahab, said the Bill is “timely to ensure the country’s digital transformation is on the right track” and “will help speed up the government’s initiatives to digitalise and analyse data to help boost the country’s digital economy”.²
 
Public sector agencies and stakeholders are advised to take note of the provisions of this Bill to ensure compliance and leverage on the benefits of enhanced data sharing.
 
For further information, please contact Charmayne Ong (Partner), Natalie Lim (Partner) and Jillian Chia (Partner) of the Technology, Media and Telecommunications Practice of Skrine.
 
 

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