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A Data Processing Agreement is essential for organizations in Malaysia that outsource the processing of personal data to third parties. This document is required under the Personal Data Protection Act 2010 (PDPA) when a data controller engages a data processor to handle personal data on their behalf. The agreement establishes clear responsibilities and obligations for both parties, ensuring compliance with Malaysian data protection laws. It covers crucial aspects such as security measures, confidentiality requirements, data breach protocols, and the scope of permitted processing activities. This document is particularly important given Malaysia's strict data protection regime and the potential penalties for non-compliance with the PDPA. The agreement also helps organizations demonstrate their commitment to data protection and privacy while managing risk in data processing relationships.

1. Parties: Identification of the data controller and data processor, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, relationship between parties, and purpose of the data processing arrangement

3. Definitions: Definitions of key terms used in the agreement, including specific terms from PDPA 2010

4. Scope and Purpose of Processing: Detailed description of the permitted data processing activities and their specific purposes

5. Duration of Processing: Term of the agreement and processing activities, including conditions for renewal and termination

6. Nature and Type of Personal Data: Categories of personal data to be processed and categories of data subjects

7. Obligations of the Data Processor: Processor's responsibilities including security measures, confidentiality, and compliance with instructions

8. Obligations of the Data Controller: Controller's responsibilities including lawful basis for processing and providing clear instructions

9. Security Measures: Technical and organizational security measures required to protect personal data

10. Sub-processing: Conditions and requirements for engaging sub-processors

11. Data Subject Rights: Procedures for handling data subject requests and assistance to the controller

12. Data Breach Notification: Procedures and timeframes for reporting and handling personal data breaches

13. Audit Rights: Controller's rights to audit and processor's obligations to demonstrate compliance

14. Data Return and Deletion: Obligations regarding data return or deletion upon agreement termination

15. Liability and Indemnities: Allocation of liability and indemnification obligations between parties

16. General Provisions: Standard contractual terms including governing law, jurisdiction, and amendment procedures