What Happens If a Company Has No Data Protection Officer?

As data protection regulations become stricter across the world, the role of a Data Protection Officer (DPO) has shifted from a “nice to have” to a regulatory necessity. In Malaysia, this shift became especially clear with the introduction of the Personal Data Protection (Amendment) Act 2024 (PDPA 2024). Under the amended law, appointing a DPO is no longer optional for many organisations. Yet, many companies are still unsure what happens if they operate without a Data Protection Officer, whether intentionally or due to misunderstanding their obligations. The consequences are not limited to legal penalties alone. They extend to operational disruption, increased breach risks, regulatory scrutiny, and loss of trust.

Understanding the Role of a Data Protection Officer in Malaysia

A Data Protection Officer (DPO) is responsible for ensuring that an organisation manages personal data in accordance with applicable data protection laws. Under PDPA 2024, both data controllers and data processors are required to appoint one or more DPOs, making the role a formal and essential part of organisational governance. This requirement reflects the growing complexity of data processing activities and the need for clear ownership as personal data moves across systems, teams, and third parties. In practice, a DPO typically acts as:

• The internal authority on data protection obligations and regulatory expectations
• A bridge between business units, IT, compliance, and leadership to align policies and controls
• The primary liaison with the Personal Data Protection Commissioner when engagement is required

Beyond these responsibilities, the DPO is expected to actively influence how decisions are made across the organisation—embedding data protection into daily operations, risk management, and strategic planning. In Malaysia, this makes the DPO a practical driver of accountability rather than a symbolic role, helping businesses stay compliant while maintaining trust with regulators and stakeholders.

Read: Dark Web and Data Security Risks: Why Companies Must Stay Vigilant?

Is a Data Protection Officer Mandatory in Malaysia?

Under the amended PDPA framework, appointing a Data Protection Officer (DPO) is no longer optional for organisations that process personal data in Malaysia. What was once handled informally by legal, HR, or IT teams is now a defined compliance function, and companies without a DPO may be seen as failing to meet basic governance expectations—regardless of whether a data breach has occurred. As a result, the absence of a DPO creates risks that often surface during audits, investigations, or incidents, when unclear ownership weakens accountability and slows effective regulatory response.

Higher Risk of Regulatory Non-Compliance

Without a DPO, ownership of data protection obligations is often unclear and spread across multiple teams. While policies may exist on paper, enforcement, monitoring, and regular updates tend to fall through organisational gaps, making it difficult for businesses to demonstrate consistent and defensible compliance when regulators review their practices.

Slower and Riskier Incident Response

Mandatory breach notification under PDPA 2024 requires fast, informed, and coordinated decision-making. In the absence of a DPO, organisations often struggle to assess the severity of an incident and determine escalation paths, resulting in delayed or incomplete notifications that significantly increase regulatory exposure.

Greater Exposure to Fines and Legal Action

PDPA 2024 introduces substantially higher penalties, including fines of up to RM1 million and potential imprisonment. While the law does not penalise companies simply for lacking a DPO, enforcement actions frequently point to weak governance, making compliance failures appear systemic rather than isolated mistakes.

Weak Oversight of Third-Party Data Processors

Many data incidents originate from vendors or service providers rather than internal systems. Without a DPO, third-party risk assessments are often inconsistent, contracts are not reviewed regularly, and security obligations are assumed instead of actively verified—creating serious accountability gaps that still fall back on the business.

Poor Handling of Individual Data Rights

With new rights such as data portability, organisations must respond accurately and within defined timelines. Without a DPO, requests are more likely to be mishandled, delayed, or inadequately verified, exposing the organisation to compliance risk while also eroding customer trust and confidence.

Lack of Strategic Data Governance

Companies without a DPO often treat data protection as a checklist exercise rather than a core governance issue. This leads to reactive behaviour, limited visibility into data risks, and failure to integrate privacy into enterprise risk management, increasing long-term financial, operational, and reputational costs.

The absence of a Data Protection Officer does not just create compliance gaps—it weakens an organisation’s overall ability to manage risk, respond to incidents, and demonstrate accountability under PDPA 2024, making data protection failures far more likely and far more costly.

Why Regulators Focus on the DPO Role

Globally, regulators view the Data Protection Officer (DPO) as a clear indicator of organisational maturity and seriousness in managing personal data. The presence of a DPO signals that data protection is embedded into governance structures, not handled reactively or informally after issues arise. Regulators increasingly assess whether organisations have taken proactive steps to manage privacy risks as part of normal business operations. In practice, having a DPO demonstrates that a company:

• Understands its data protection responsibilities across departments and business functions
• Has clear accountability structures, rather than fragmented or shared ownership
• Is capable of managing incidents and risks proactively, supported by defined processes and escalation paths

In Malaysia, this expectation is now firmly embedded in PDPA 2024. Regulators are less interested in post-incident explanations and more focused on whether organisations have built-in governance mechanisms to manage personal data responsibly on an ongoing basis.

Can a Company Assign the DPO Role Internally?

Yes, appointing an internal DPO is allowed and often practical. Many organisations assign the role to individuals from compliance, legal, risk, or information security teams who already understand the organisation’s structure, data flows, and regulatory landscape. When done correctly, this approach can strengthen alignment between data protection and business operations. However, certain conditions must be met for the appointment to be effective:

1. The DPO must have sufficient knowledge of PDPA and data protection principles to make informed judgments
2. The role must carry authority and independence, enabling the DPO to challenge decisions when needed
3. Conflicts of interest must be managed, especially where commercial pressures may override compliance

Simply assigning the title without decision-making power, access to leadership, or operational support undermines the role and may not meet regulatory expectations under PDPA 2024.

What Makes an Effective Data Protection Officer in Malaysia

An effective Data Protection Officer Malaysia goes beyond policy oversight and compliance reporting. They understand how personal data flows through systems, vendors, and teams, and how human behaviour, technology, and operational processes intersect in real-world scenarios. Key qualities of an effective DPO typically include:

• Strong understanding of PDPA and regulatory expectations, including practical application
• Ability to communicate clearly with both technical and non-technical teams, bridging gaps in understanding
• Authority to influence decisions and escalate risks without organisational resistance
• Practical experience in incident response and breach management, not just theoretical knowledge

Without these capabilities, the DPO role risks becoming symbolic—present on paper but ineffective in protecting the organisation from regulatory and operational risk.

How the Absence of a DPO Affects Business Trust

Customers, partners, and regulators increasingly expect transparency and clear accountability in how personal data is managed. When an incident occurs, one of the first and most telling questions is often, “Who is responsible for data protection in this organisation?” The ability to answer this confidently reflects how seriously a company treats data governance.

Companies that cannot provide a clear answer tend to lose credibility quickly. Unclear ownership leads to uncertainty, slower responses, and inconsistent communication, all of which undermine confidence. Once trust is damaged in this way, rebuilding it can be both time-consuming and costly, affecting not only regulatory relationships but also long-term business reputation.

Why More Malaysian Companies Are Moving Toward Structured DPO Support

As PDPA 2024 raises regulatory expectations, many organisations are realising that appointing a DPO alone is not sufficient. The role must be supported by a broader structure that enables consistent execution, visibility, and continuous improvement. This support commonly includes:

• Clear and practical policies and procedures aligned with real data practices
• Ongoing training and awareness programmes across business units
• Incident response playbooks that are documented, tested, and understood
• Visibility into human and third-party risks, not just technical controls

As a result, more Malaysian businesses are moving toward structured approaches that combine governance, technology, and human risk management—ensuring the DPO function is effective, credible, and sustainable rather than merely symbolic.

Read: 7 Effective Steps to Protect Company Data from Phishing and Malware

Conclusion

So, what happens if a company has no Data Protection Officer? In short, risk accumulates silently until a breach, audit, or regulatory inquiry exposes the gaps. Under PDPA 2024, operating without a DPO is no longer a grey area. It signals weak governance, unclear accountability, and insufficient preparedness. For organisations in Malaysia, the question is no longer whether to appoint a DPO, but whether they are empowering that role properly. A well-supported Data Protection Officer is not just a compliance requirement, it is a safeguard for trust, resilience, and long-term business sustainability in an increasingly data-driven economy.