Failing to comply with the PDPA can result in severe legal and financial consequences. Businesses may face fines of up to RM500,000 and imprisonment of up to three years for non-compliance. In addition, businesses may face reputational damage and loss of customer trust, which can have significant financial implications in the long term.
Modern users are also becoming increasingly aware of the importance of their personal data privacy. According to a survey conducted by the Centre for Governance and Political Studies in Malaysia, 91% of internet users are concerned about their online privacy and data protection (CGPS, 2018). This means that businesses that collect personal data must take the necessary steps to address these concerns and build trust with their users.
Building trust with users through transparency and accountability is very important for an organization. Nowadays, privacy is not just a legal obligation, but it is also being considered as a human rights issue. Businesses that take a proactive approach to protecting user privacy will not only build trust with their users but also position themselves as leaders in their industry.
Data Collection and Use
The data that businesses collect may include various personal information, and could also include sensitive information such as financial information, medical records, and browsing history. The use of this data can range from marketing to product development to personalization of user experience. However, without proper safeguards in place, this data can be misused or even stolen, causing harm to individuals and businesses alike.
Benefits for Business Owners