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The Supplier Data Processing Agreement is essential for any organization in Malaysia that engages external suppliers to process personal data on its behalf. This document becomes necessary when a company (Data Controller) outsources any operation involving the processing of personal data to a third-party service provider (Data Processor). The agreement ensures compliance with the Malaysian Personal Data Protection Act 2010 (PDPA) and related regulations, establishing clear responsibilities and obligations for both parties. It covers crucial aspects such as data security, confidentiality, sub-processing arrangements, and breach notification procedures. This agreement is particularly important given Malaysia's strict data protection regime and the significant penalties for non-compliance. It should be implemented before any data processing activities commence and updated as regulatory requirements or processing activities change.

1. Parties: Identification of the Data Controller (the company) and the Data Processor (the supplier), including full legal names, registration numbers, and registered addresses

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

3. Definitions: Definitions of key terms used throughout the agreement, including 'Personal Data', 'Processing', 'Data Subject', 'Sub-processor', etc.

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

5. Duration: Term of the agreement and conditions for termination

6. Nature and Purpose of Processing: Specific details about how the data will be processed and the legitimate business purpose

7. Obligations of the Data Processor: Core responsibilities of the supplier including security measures, confidentiality, and processing standards

8. Obligations of the Data Controller: Responsibilities of the company, including providing clear instructions and ensuring legal basis for processing

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

10. Data Subject Rights: Procedures for handling data subject requests and ensuring compliance with PDPA rights

11. Data Security: Required security measures, breach notification procedures, and security standards

12. Audit Rights: Rights of the controller to audit the processor's compliance and documentation requirements

13. Data Transfer: Rules and requirements for transferring data, especially cross-border transfers

14. Liability and Indemnities: Allocation of risk and responsibility between parties

15. Termination: Procedures for termination and data handling upon termination

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