What Malaysia’s Updated Data Protection Law Means for Recruiters

With sweeping updates under the Personal Data Protection (Amendment) Act 2024, Malaysia has taken a major step forward in aligning with global data privacy standards - closer now to the EU’s GDPR and Singapore’s PDPA. For the recruitment sector, which deals extensively in personal data, these changes are not just legal formalities - they’re business-critical.

 

1. Appointing a Data Protection Officer is now mandatory.

One of the most significant changes is the requirement for certain organisations to appoint a Data Protection Officer (DPO). This is no longer optional. From June 2025, full compliance will be enforced.

Recruiters regularly collect, process, and share highly sensitive candidate data - CVs, references, identification documents - which makes them particularly affected. A DPO is now expected to:

 

• Oversee compliance with data protection obligations,

• Monitor how personal data is handled, and

• Act as the liaison with Malaysia’s Personal Data Protection Commissioner.

 

2. Cross-Border Data Transfers Are More Regulated

Recruitment firms that work with international clients or place candidates overseas must comply with the Cross-Border Data Transfer (CBDT) Guidelines. These rules clarify when and how personal data can leave Malaysia, including requirements for:

 

• Transfer Impact Assessments (reassessed every 3 years),

• Explicit, informed consent,

• And appropriate legal safeguards, like Standard Contractual Clauses.

 

If you're sending candidate data abroad for background checks, placements, or assessments, you need updated documentation, policies, and consent mechanisms.

 

Why This Matters for Recruiters

Recruitment is fundamentally a data business. Whether you’re leveraging AI-driven tools for talent matching or building cross-border talent pipelines, your operations depend on a compliant, trustworthy dataset. These reforms are more than a compliance exercise - they’re your licence to operate in the modern digital hiring landscape.

 

• A clean, compliant dataset is essential if you want to capitalise on automation or AI tools.

• Data breaches or non-compliance could delay international placements, damage client trust, and lead to enforcement action.

 

What You Should Do Now

• Appoint a qualified DPO (if you haven’t already).

• Update your privacy notices and consent forms.

• Review cross-border data flows - where does data go, and under what safeguards?

• Train your team to understand what’s changed and why it matters.

 

Final Thoughts

Data privacy is no longer just the responsibility of compliance teams: it’s a strategic issue for recruitment leaders. If you’re working across borders, outsourcing assessments, or using digital platforms, you need to ensure your operations reflect the new legal landscape.

For tailored support, APSCo Southeast Asia can connect you with legal experts to help interpret these changes and assess your readiness.

 

Contact Us Today