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The Third Party Data Processing Agreement is essential for organizations operating in Malaysia that outsource the processing of personal data to external service providers. This document is required under the Personal Data Protection Act 2010 (PDPA) whenever a data controller engages a third party to process personal data on their behalf. The agreement defines the scope of processing activities, establishes security requirements, outlines breach notification procedures, and ensures compliance with Malaysian data protection principles. It is particularly crucial given Malaysia's strict data protection regime and the increasing focus on data privacy compliance in the region. The document should be implemented before any data processing activities commence and must be regularly reviewed to ensure ongoing compliance with Malaysian law and evolving data protection standards.

1. Parties: Identification of the Data Controller and Data Processor, including full legal names and registered addresses

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

3. Definitions: Definitions of key terms used in the agreement, including 'Personal Data', 'Processing', 'Data Subject' as per PDPA 2010

4. Scope and Purpose of Processing: Detailed description of what personal data will be processed and for what specific purposes

5. Obligations of the Data Processor: Core responsibilities including processing only on documented instructions, confidentiality, security measures, and data breach notification

6. Obligations of the Data Controller: Responsibilities including providing clear instructions, ensuring legal basis for processing, and responding to data subject requests

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

8. Confidentiality: Confidentiality obligations for both parties regarding the personal data and processing activities

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

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

11. Audit Rights: Controller's rights to audit the Processor's compliance and cooperation obligations

12. Term and Termination: Duration of the agreement and circumstances for termination

13. Return or Deletion of Data: Obligations regarding personal data upon termination of services

14. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes