NATIONAL CONFERENCE ON PERSONAL DATA PROTECTION LAW:OPENING AND KEYNOTE ADDRESS BY THE HONORABLE SENATOR HENG SEAI KIE

OPENING AND KEYNOTE ADDRESS BY THE HONORABLE SENATOR HENG SEAI KIE

DEPUTY MINISTER II, MINISTRY OF INFORMATION, COMMUNICATION AND CULTURE, MALAYSIA

AT THE OPENING OF NATIONAL CONFERENCE ON PERSONAL DATA PROTECTION LAW

KUALA LUMPUR, 7 OCTOBER 2009

PROFESSOR DR. HAMDANI CAMPUS DIRECTOR,                                                                                                                                                                    UNIVERSITI TEKNOLOGI MALAYSIA INTERNATIONAL CAMPUS

PROFESSOR  DR. MAHBOB SALIM                                                                                                                EXECUTIVE DIRECTOR ,  INSTITUTE SULTAN ISKANDAR                                                                                     UNIVERSITI TEKNOLOGI MALAYSIA

PROF. DR. MOHAMED AMIN ALIAS                                                                                                                     HEAD OF BUSINESS TECHNOLOGY & INNOVATION DIVISION,                                                                            INSTITUTE SULTAN ISKANDAR, UNIVERSITI TEKNOLOGI MALAYSIA

DISTINGUISHED PARTICIPANTS,

LADIES AND GENTLEMEN,

MAY I BEGIN BY WISHING YOU ALL A VERY GOOD MORNING.

IT IS A PLEASURE TO BE INVITED TO THIS NATIONAL CONFERENCE ON PERSONAL DATA PROTECTION LAW THAT SEEKS TO DISCUSS MANY ANGLES OF THE LEGAL FRAMEWORK ON PERSONAL DATA PRIVACY AND SECURITY IN THE LIGHT OF UPCOMING TABLING OF THE PERSONAL DATA PROTECTION (PDP) BILL IN MALAYSIAN PARLIAMENT IN NEAR FUTURE. I CONGRATULATE THE INSTITUTE OF SULTAN ISKANDAR (ISI) OF THE UNIVERSITY OF TECHNOLOGY MALAYSIA (UTM) AND GLOBALEVENT MALAYSIA FOR COMMISSIONING THIS INITIATIVE AS A PART OF NECESSARY EXPOSURE AND SOCIALISATION OF THE PDP LAW FOR THE PUBLIC AND ALL POTENTIAL STAKEHOLDERS.

AFTER YEARS OF WAITING, SOON THE PERSONAL DATA PROTECTION DRAFT LAW WILL SURFACE ON THE TABLE OF THE PARLIAMENT TO BE DISCUSSED, DEBATED AND FURTHER ACTED UPON. THIS DRAFT LAW IS SET TO BE ANOTHER MILESTONE FOR MALAYSIA AS THIS IS THE LAW THAT WILL REDEFINE MANY ASPECTS OF GOVERNANCE, TRADE, BUSINESS, TECHNOLOGY AND CONSUMER PROTECTION.

(ON THE IMPORTANCE OF TRADE, BUSINESS AND INVESTMENT)

LADIES AND GENTLEMEN,

THE DRAFTING AND ENACTMENT OF LAW THAT REGULATES THE COLLECTION, PROCESSING, STORAGE AS WELL AS EXPLOITATION OF PEOPLE???S PERSONAL DATA IS TRULY A WITNESS THAT THE GOVERNMENT OF MALAYSIA CANNOT CARE LESS ON THE IMPORTANCE OF GLOBAL BUSINESS AND TRADE WHILE AT THE SAME TIME GIVING EMPHASIS ON THE PROTECTION OF CONSUMERS AND PUBLIC AT LARGE.

MALAYSIA HAS ALWAYS PLACED A GREAT IMPORTANCE ON THE NEED TO INVEST BOTH BY LOCAL AND FOREIGN INVESTORS. FOR THAT PURPOSE, IT IS NECESSARY TO PREPARE MALAYSIA AS A GOOD IF NOT A PERFECT PLATFORM TO LAND THOSE INVESTMENTS IN THIS BEAUTIFUL COUNTRY. THIS PLATFORM SHOULD BE STRUCTURED ON AN INVESTMENT-FRIENDLY LEGAL FRAMEWORK WHICH IS WHAT THE PDP LAW AIMS TO BE, THAT IS, TO PROVIDE FOR THE PROTECTION OF PERSONAL DATA FOR COMMERCIAL TRANSACTIONS AND MATTERS INCIDENTAL THERETO.

IN THE PAST DECADE WE HAVE BEEN READING HORRIFYING STORIES ABOUT PEOPLE LOOSING THEIR MONEY DUE TO CREDIT CARD ABUSES, OR COMPANIES LOOSING REPUTATION DUE TO THEIR CUSTOMERS??? PRIVACY INFRINGEMENT, BUSINESSES RUINED BY DATA FRAUD, AND GOVERNMENT AGENCIES CONCERNED BY PERSONAL DATA LEAKAGES. ON SEPARATE INCIDENTS, SOME QUARTERS OF PUBLIC HAVE BEEN DENIED BANK LOAN BECAUSE OF INACCURACIES ABOUT THEIR FINANCIAL HISTORY; EDUCATIONAL INSTITUTIONS HAD TO DEAL WITH TROUBLE DUE TO MISTAKENLY-SENT EMAILS; AND NATIONAL E-GOVERNMENT READINESS BEING UNDERMINED BY DATA PRIVACY CONCERNS. ALL THESE INCIDENTS ARE A SMALL TIP OF ICEBERG THAT THREATENS THE INTEGRITY OF MALAYSIA AS AN EMERGING KNOWLEDGE ECONOMY.

INDEED, THE SECURITY, INTEGRITY AND CONFIDENTIALITY OF PERSONAL DATA IS NOT BUT A FUNDAMENTAL FACTOR IN THE ESTABLISHMENT OF MALAYSIA???S KNOWLEDGE ECONOMY WHICH IS ENABLED BY THE INFORMATION AND COMMUNICATIONS TECHNOLOGY (ICT). THE MASSIVE GROWTH OF E-COMMERCE WHICH IS GEARED BY THE ADVANCE OF THE ICT HAS TRANSFORMED THE VALUE OF PERSONAL DATA FROM A MERE ADMINISTRATIVE AND NON-COMMERCIAL FULFILLMENT TO A VALUABLE ASSET WORTHY OF BEING A COMMODITY ON ITS OWN. UPON PROPER MANAGEMENT AND STRATEGIC HANDLING, PERSONAL DATA CAN BE A SOURCE OF WEALTH BOTH FOR THE OWNERS AND THE DATA SUBJECTS. CONVERSELY, WHEN IT FALLS TO IRRESPONSIBLE HANDS, THE MISUSE OF PERSONAL DATA WILL CREATE A SERIES OF LOSSES, RANGING FROM FINANCIAL TO LEGAL LIABILITIES, FROM COMMERCIAL TO PUBLIC EMBARRASSMENT.

IF THIS IS NOT CONVINCING ENOUGH, THE CURRENT TREND OF GLOBAL TRADE WOULD GIVE MALAYSIA NO CHANCE TO BACK-TRACK AS PDP LAW IS NOW A TRADE PRE-REQUISITE RECOGNISED BY INTERNATIONAL COMMUNITIES. IN FACT, ADEQUATE REGULATION ON PERSONAL DATA IS NOW MADE A PREREQUISITE BY MANY COUNTRIES FOR INITIATING OR CONTINUING BILATERAL TRADE. THIS IS EVIDENT, FOR EXAMPLE, IN THE EUROPEAN UNION???S DATA PROTECTION DIRECTIVE 1995 (DIRECTIVE NO. 95/46/EC) IN WHICH, THE ARTICLE 25 CLEARLY MENTIONS AMONG OTHERS THAT, ??????THE TRANSFER TO A THIRD COUNTRY OF PERSONAL DATA WHICH ARE UNDERGOING PROCESSING OR ARE INTENDED FOR PROCESSING AFTER TRANSFER MAY TAKE PLACE ONLY IF ???THE THIRD COUNTRY IN QUESTION ENSURES AN ADEQUATE LEVEL OF PROTECTION.???

IT IS THIS ADEQUACY REQUIREMENT THAT HAS FORCED YEARS OF NEGOTIATION AND CONTENTION BETWEEN BRUSSELS AND WASHINGTON BEFORE SAFE HARBOUR PRINCIPLES WERE FINALLY AGREED. IT IS ONLY ABOUT TIME THAT THIS ADEQUACY REQUIREMENT WILL AFFECT THE TRADE IN THIS REGION AS THE COUNTRIES THAT CONSTITUTE ASIA-PACIFIC ECONOMIC COOPERATION (APEC) HAVE ALSO RECOGNISED THE IMPORTANCE OF THIS LEGAL DEVELOPMENT.

LADIES AND GENTLEMEN,

MALAYSIA IS MOVING EVER CLOSER TOWARDS THE REALISATION OF THE GOALS OF VISION 2020. OUR GOALS OF CREATING A DEVELOPED NATION IN OUR OWN MOULD EMBODIES THE REQUIREMENTS FOR ADVANCE LEGAL AND REGULATORY INFRASTRUCTURES. WE RECOGNISE THE NEED TO ENSURE THAT SYSTEMS OF REGULATION, GOVERNANCE AND BUSINESS ARE CAPABLE OF RESPONDING TO THE CHALLENGES OF GLOBALISATION AND MOST IMPORTANLY THE OPPPORTUNITIES OF THE INFORMATION AND COMMUNICATIONS TECHNOLOGY.

THE INVENTION OF MANY ICT-FACILITATED AND WEB-BASED BUSINESS PROCESSES, TOGETHER WITH THE EVER-INCREASING VALUE EMBODIED IN DATA ASSETS SUCH AS TRADE SECRETS, CUSTOMERS INFORMATION AND OTHER STRATEGIC BUSINESS DATABASES, HAVE LED TO THE COMMODIFICATION AND COMMERCIALISATION OF PERSONAL DATA. THIS COULD BE THE REALISATION OF THE WORDS OF OUR FORMER PRIME MINISTER TUN MAHATHIR MOHAMAD WHEN HE SAID THAT, ???IN THE FUTURE, THE DETERMINING CHARACTER OF THE WEALTHINESS OF A COUNTRY MAY BE THE ACCESSIBILITY TO INFORMATION RESOURCES AND THE USE THEY ARE PUT TO. THEREFORE, INFORMATISATION RATHER THAN INDUSTRIALISATION MAY BE A BETTER REFLECTION OF THE DEVELOPMENT OF NATION.???

IN ITS NINTH MALAYSIA PLAN 2005-2010, THE GOVERNMENT OF MALAYSIA ACKNOWLEDGES THAT IN ORDER TO REALISE THE FULL POTENTIAL OF ICT, THE PRESERVATION OF E-SOVEREIGNTY AND TRUST WITHIN E-COMMERCE MUST BE INTENSIFIED. SECURE COMMUNICATIONS, TRUSTED IDENTITY, AND TRUSTED SYSTEMS, AMONG OTHERS, ARE MADE THE PRE-REQUISITE TO ENSURE CONFIDENTIALITY, INTEGRITY AND AVAILABILITY OF INFORMATION. THROUGH A SERIES OF LEGISLATION AND POLICIES, THE GOVERNMENT SEEKS TO PROVIDE LEGAL FRAMEWORK THAT FITS FOR THIS PURPOSE.

AT THIS JUNCTURE, IT IS CRUCIAL TO ACKNOWLEDGE THAT PDP LAW PLAYS A VERY IMPORTANT ROLE TO CREATE A TRUSTED E-COMMERCE SYSTEM AND ICT-ENABLED COMMUNICATIONS. WITHOUT CLEAR RIGHTS AND OBLIGATIONS ON THE COLLECTION, PROCESSING, STORING AND EXPLOITATION OF PERSONAL DATA, INDIVIDUALS WILL BE RELUCTANT IN CARRYING OUT WITH THEIR TRANSACTIONS, BOTH AUTOMATED AND MANUALLY-ENABLED. THEREFORE THE BIGGEST TAKS OF PDP LAW IS TO CLEAR THIS BARRIER, AS THE PDP LAW SEEKS TO ENUMERATE CERTAIN LEGAL PRINCIPLES CAPABLE OF SAFEGUAREDING THE PERSONAL DATA OF PEOPLE INVOLVED IN THE BUSINESSES. AND IN ORDER TO ENFORCE SUCH PRINCIPLES, CIVIL AND CRIMINAL LIABILITIES ARE FRAMED SO THAT DATA SUBJECTS WILL BE REST ASSURED THAT THEIR RIGHTS ARE WELL PROTECTED.

LADIES AND GENTLEMEN,

THIS TAKES ME TO ANOTHER MILESTONE THIS LAW SEEKS TO ACHIEVE. WITH PDP LAW, WE ARE STRONGLY INTENDING TO TRANSFORM OURSELVES INTO A BETTER AND MORE ACCOUNTABLE GOVERNMENT, A MORE OPEN AND CARING SOCIETY AND ALSO A MORE SOCIALLY RESPONSIBLE BUSINESSES.

THE OBLIGATIONS TO PROTECT PERSONAL DATA WILL CREATE A MORE ACCOUNTABLE AND RESPONSIBLE BUSINESSES BECAUSE THE LAW TASKS US TO UNDERSTAND AND ADMIT THAT PERSONALLY-IDENTIFIED OR IDENTIFIABLE DATA CANNOT BE HANDLED THE SAME WAY LIKE OTHER TYPES OF COMMERCIAL DATA ASSETS. THEY DO NOT EXCLUSIVELY BELONG TO THE BUSINESSES AS THE LATTER ARE ONLY REGARDED AS ???DATA USERS???. THE REAL OWNERS ARE STILL THE PEOPLE WHOSE DATA ARE BEING HELD OR USED, OR IN OTHER WORDS THE ???DATA SUBJECTS.??? THE PDP LAW SEEKS TO CLEARLY HIGHLIGHT THE RIGHTS AND OBLIGATIONS OF EACH OF DATA USERS AND DATA SUBJECTS. THOSE OBLIGATIONS CAN BE FURTHER SEEN AS AN IMPLEMENTATION OF CORPORATE DUTIES TOWARDS INDIVIDUALS RANGING FROM THE SHAREHOLDERS TO THE EMPLOYEES, FROM BUSINESS PARTNERS TO OUTSOURCED PROVIDERS, AND FROM EXISTING CUSTOMERS TO THE POTENTIAL ONES. WITH THIS VIEW, PDP LAW WOULD THUS HELP PROMOTE THE CORPORATE GOVERNANCE AND THE SOCIAL CORPORATE RESPONSIBILITIES.

ON THE OTHER HAND, THE WAY GOVERNMENT MANAGES PERSONAL DATA OF ITS INDIVIDUALS IS NOW AN IMPORTANT PARAMETER FOR BENCHMARKING THE PRINCIPLES OF GOOD GOVERNANCE, JUST AS PDP LAW INDICATES A BETTER LEVEL OF GOVERNMENT ADMINISTRATION; AND A YARDSTICK FOR THE LEVEL OF E-GOVERNMENT DEVELOPMENT WORLDWIDE. CLEARLY WE DO NOT HAVE A LUXURY TO CHOOSE BETWEEN HAVING AND NOT HAVING THE PDP LAW. IN ORDER TO PROGRESS, WE NEED TO APPRECIATE THE NEED TO RESPECT INDIVIDUALS RIGHT TO THEIR DATA PRIVACY, THUS IT WILL CREATE A BETTER LEVEL OF TRUST AND CONFIDENCE TOWARDS OUR GOVERNMENT SYSTEMS.

FINALLY, WHEN MORE ACCOUNTABLE BUSINESS AND BETTER GOVERNANCE IS ACHIEVED, THE RIGHTS OF A LARGER MALAYSIAN PUBLIC BOTH AS INDIVIDUALS AND CONSUMERS WOULD ULTIMATELY BE MORE PROTECTED. AND THE NATIONAL COMMERCIAL TRANSACTIONS CAN BE RIGHTLY CONSTRUCTED TOWARDS TRANSFORMING MALAYSIA INTO THE NEW ERA OF GLOBALISATION AND INFORMATISATION. NOW I HARDLY NEED TO SUMMARISE THAT PDP LAW WOULD ULTIMATELY BENEFIT EVERYBODY.

LADIES AND GENTLEMEN,

I HOPE ALL OF YOU HAVE A BENEFICIAL AND FRUITFUL DISCUSSION DURING THIS ONE-DAY CONFERENCE. I AM SURE IT WILL LEAD TO THE DEVELOPING AND STRENGTHENING THE IMPLEMENTATION OF THE LEGAL FRAMEWORK ON PERSONAL DATA PROTECTION, TAKEN FROM VARIOUS PERSPECTIVES OF ALL THE STAKEHOLDERS. THE PUBLIC, TOO, WILL BENEFIT FROM THIS EXPOSURE SO THAT THEY WILL BE ABLE TO UNDERSTAND AND APPRECIATE THE OBJECTIVES OF THE PDP LAW FOR THEIR BENEFIT AS WELL AS FOR THE COUNTRY IN THE NEAR FUTURE TO COME. LET THIS MOMENT BE A STARTING POINT FOR ALL OF US TOWARDS A MORE CARING GOVERNMENT, MORE PROTECTED PUBLIC, MORE FRUITFUL COMMERCE AND LAST BUT NOT LEAST MORE FLOURISHING MALAYSIA. AND SO, IT IS WITH THOSE WORDS, LADIES AND GENTLEMEN, THAT I TAKE PLEASURE IN DECLARING OPEN THIS NATIONAL CONFEFENCE OF PERSONAL DATA PROTECTION LAW.

THANK YOU.