MALAYSIA Law and Practice Contributed by: Janet Toh, Irene Yong, Krystle Lui and Boo Cheng Xuan, Shearn Delamore & Co.
4. Internet of Things 4.1 Machine-to-Machine Communications, Communications Secrecy and Data Protection There is no dedicated legislation governing Inter - net of Things (IoT) in Malaysia. That said, the CMA’s framework on the governance of com - munications would apply to the design of IoT and the use thereof. In particular, the design of IoT and IoT devices must be in accordance with the technical stand - ards imposed by the CMA, to the extent the IoT devices are communications equipment. Under the Communications and Multimedia (Techni - cal Standards) Regulations 2000 (the “Techni - cal Standards Regulations”), it is an offence to intentionally design, install, operate, maintain or modify any communications equipment in a manner which, among others, is contrary to the applicable standards or likely to cause non- interoperability between any communications equipment. In this regard, several technical codes (which are voluntary industry codes) concerning IoT have been registered under the CMA, including with - out limitation the Technical Code on Internet of Things (IoT) ‒ Baseline Security Requirements for Consumer Devices, and the Technical Code on Industrial Internet of Things (IIoT) Connectivity And Communication Framework. Other generally applicable laws on privacy, secrecy and data protection, shall also be con - sidered based on the capabilities and operations of the IoT solution and devices used. 4.2 Compliance and Governance IoT devices are highly susceptible to cyber- attacks due to their widespread deployment,
silent on how consent may be obtained and how privacy notice may be given to the relevant data subjects under such circumstances where the data user may not have means to directly com - municate with the data subjects involved. AI-Related Initiatives The National Guidelines on AI Governance & Ethics (the “AI Guidelines”) were launched by the Ministry of Science, Technology and Innovation on 20 September 2024. The AI Guidelines are part of Malaysia’s response to the global calls on the ethics of AI, including UNESCO’s Rec - ommendation on the Ethics of AI and ASEAN’s AI Governance and Ethics Guidelines. Given the dynamic nature of AI, the AI Guidelines may be amended from time to time to reflect technologi - cal progress and the changing ethical norms. The objectives of the AI Guidelines are as fol - lows: • supporting the implementation of the Malay - sian National AI Roadmap 2021-2025; • facilitating the implementation of responsible AI according to the seven AI Principles; • building trustworthiness in AI, which is emphasised by responsible AI; • managing risks caused by the development and deployment of AI technology; and • maximising the benefits of AI to enhance national productivity, economic growth and competitiveness. On 12 December 2024, Malaysia launched the National Artificial Intelligence Office, aimed at shaping policies intended to centralise AI poli - cymaking and address regulatory issues. This move positions Malaysia as a key player in AI governance, with the office expected to serve as a focal agency.
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