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Big Data, Bigger Possibilities: The Game-changing Impact Of Malaysia’s Data Sharing Act 2025

  • Siti Norafiqah Hassanor
  • Mar 1, 2025
  • 3 min read

The Big Idea: Why This Act Matters


Imagine a government where agencies seamlessly exchange information, no more redundant paperwork, no more frustrating counter-hopping just to process a simple form. It may sound like a distant dream, but Malaysia has just taken a decisive step towards making it a reality with the Data Sharing Act 2025 (“Act”). 


This groundbreaking legislation, which received royal assent on 5 February 2025, aims to eliminate long-standing barriers to seamless data exchange between public sector entities. With this Act, federal agencies can finally share information efficiently, making government services smoother, faster, and more effective. 


The Act was designed to break down barriers that have long hindered data sharing between public sector agencies. By establishing a robust framework for inter-agency data exchange, the Act fosters collaboration and ensures that data-driven decision-making becomes central to government operations, supporting digital transformation and innovation. 


Who’s Involved


At the core of this Act is an expansive definition of “public sector agency”, which includes: 


  1. Government agencies responsible for public services as delineated in Article 132(1) of the Federal Constitution, which includes the armed forces, judicial and legal services, general public service of the Federation, the police force, and the education service.  


  1. Statutory authorities endowed with powers under any federal law.  


The Act also defines “data” broadly, covering facts, statistics, instructions, concepts, or any information that can be communicated, analyzed, or processed, whether by individuals, computers, or other means. 


How Does Data Sharing Actually Work


The Act delineates a structured process for data sharing requests:


  1. Initiation of Request: A public sector agency may solicit data from another agency by specifying:

    1. the exact data required;

    2. the intended purpose of the data;

    3. the identities of both the data recipient and provider; and

    4. the methodologies envisaged for data handling. 

  2. Evaluation: The recipient agency is obligated to assess the request, considering factors such as:

    1. the nature and sensitivity of the data;

    2. the purpose for which the data is solicited;

    3. the data handling and storage protocols of the requesting agency;

    4. the presence of adequate cybersecurity measures to safeguard the data. 

  3. Decision: Post-evaluation, the agency may accede to or decline the request, predicated on the criteria established by the Act.


Safeguards And Penalties


With increased data access comes a heightened responsibility to ensure privacy and security. The Act includes strict safeguards, such as:  


  1. Privacy and Confidentiality: Agencies are mandated to implement measures that preserve the privacy and confidentiality of shared data. 


  1. Cybersecurity Measures: Prior to data sharing approval, the requesting agency must demonstrate the implementation of robust cybersecurity protocols. 


The Act also imposes strict penalties for non-compliance. Any officer or servant of a public sector agency found guilty of misusing or disclosing shared data beyond the permitted scope may face:  


  • Fines of up to RM1.0 million; and/or 

  • Imprisonment for up to five (5) years. 


Private Sector Implications? What About AI & Digital Transformation?


While the Act primarily focuses on public sector data sharing, it raises questions about indirect effects on the private sector. 

  1. Could businesses benefit from improved government efficiency and faster regulatory approvals?  

  2. Will open data initiatives eventually allow private entities to access certain datasets?  

  3. Could enhanced data governance foster a stronger digital economy and investment climate?  


The Act is poised to serve as a catalyst in Malaysia’s quest to become an AI-centric nation. By facilitating the seamless sharing of data, the Act provides the foundational bedrock for the development and deployment of AI technologies across various sectors, thereby propelling the nation’s digital transformation agenda.


The Verdict: A Step In The Right Direction


The Act epitomizes Malaysia’s unwavering commitment to harnessing the power of data for the collective good. By instituting a comprehensive framework for data sharing among public sector agencies, the Act not only enhances efficiency and transparency in public service delivery but also positions Malaysia at the vanguard of data-driven governance in the region.  


However, as with any major legislative reform, effective implementation will be key. Agencies must ensure that the data-sharing process remains secure, transparent, and in compliance with the Act’s safeguards to avoid potential misuse and legal repercussions. 


As the Act comes into force, it is imperative for all stakeholders to meticulously adhere to its provisions, ensuring that the noble objectives of the legislation are actualized, thereby ushering in a new era of data-centric public administration. 


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