Importance of PDPA Malaysia Compliance for XBRL Preparation
With the increased use of personal data, privacy and management of data have become a huge concern for companies in every sector. With businesses going digital, the risk of security threats and data leaks has been on the rise. Any blunders with highly sensitive personal data can have drastic financial and non-financial implications for the company. While financial implications include monetary fines or lawsuits, non-financial implications can directly affect trust, customer loyalty, and brand equity.
The Personal Data Protection Act 2010 governs data protection in Malaysia. It regulates the processing of personal information for commercial use inside Malaysia. The act passed in 2010, effective from 2013, revolves around the end-user consent for the commercial use of personal data. It aims to increase transparency and accountability in handling data, improving the privacy landscape for businesses in Malaysia.
PDPA Malaysia also plays a vital role in XBRL reporting for Malaysian companies. Why? Because XBRL reports include a massive amount of personal information about the company and its individuals! PDPA regulates the collection, processing, use, storage, and disclosure of personal information to avoid misuse. Let’s delve deeper to understand the importance of PDPA Malaysia in financial reporting and how to comply with the same.
PDPA Malaysia and XBRL Reporting
Any organisation that uses personal data for XBRL preparation must have a systematic framework to help establish a robust data protection infrastructure. It covers the processes for handling personal data and defines the responsibilities of people in the organisation related to the same.
One effective way to comply with PDPA is to appoint a Data Protection Officer (DPO) responsible for supervising the PDPA application. However, unlike in Singapore, the DPO is not the only one responsible for implementing a Data Protection Management Programme (DPMP). Why? Because personal data is collected, used, stored, and disclosed in various departments. As a result, personnel from each team should be an active part of the DPMP.
Additionally, if a company outsources their XBRL requirements to a third-party service provider, it should have a customer information breach handling and response mechanism in place. This helps in accountability in the event of loss, theft, modification, misuse, or disclosure of information in their custody.
To Sum It Up!
The increasing cases of identity theft and information misuse have made PDPA more relevant than ever. Due to a lot of information being reported in the online XBRL format, companies must adhere to the PDPA laws while preparing and filing their annual reports via MBRS.
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