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The Data Processing Contract serves as a crucial legal instrument in Malaysia's data protection framework, essential for organizations that outsource or provide data processing services. This document is required whenever an organization (data controller) engages another party (data processor) to process personal data on its behalf, ensuring compliance with the Personal Data Protection Act 2010 and related Malaysian regulations. The contract defines the scope of processing activities, security requirements, confidentiality obligations, and procedures for handling data breaches. It's particularly important in the context of increasing digital transformation and cross-border data flows, where clear allocation of responsibilities and compliance obligations is essential for protecting personal data and maintaining regulatory compliance.

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

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Definitions of key terms including 'Personal Data', 'Processing', 'Data Subject', 'Controller', 'Processor' as per PDPA 2010

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

5. Duration of Processing: Term of the agreement and processing activities

6. Obligations of the Data Processor: Core responsibilities including processing only on documented instructions, confidentiality, security measures, and sub-processor requirements

7. Obligations of the Data Controller: Responsibilities including lawful basis for processing, accuracy of data, and providing clear instructions

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

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

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

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

12. Cross-border Data Transfers: Rules and safeguards for international data transfers

13. Liability and Indemnification: Allocation of liability and indemnification obligations

14. Termination: Termination rights and obligations, including data deletion or return

15. Governing Law and Jurisdiction: Specification of Malaysian law and jurisdiction