The Sub Processor Agreement is essential when a data processor needs to engage another party to process personal data on their behalf in Malaysia. This document is required for compliance with the Personal Data Protection Act 2010 and ensures proper data handling throughout the processing chain. It becomes necessary when companies outsource data processing activities, use cloud services, or engage third-party vendors for data-related services. The agreement covers crucial aspects such as security measures, confidentiality obligations, data breach procedures, and audit rights. It's particularly important in the Malaysian context where data protection regulations impose strict requirements on data handling and transfer, making it essential for businesses to have proper documentation and controls in place for all data processing relationships.
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1. Parties: Identification of the main processor and the sub-processor, including full legal names and registered addresses
2. Background: Context of the agreement, reference to the main processing agreement, and the need for sub-processing services
3. Definitions: Key terms used throughout the agreement, including technical terms, regulatory references, and defined parties
4. Scope and Purpose: Details of the sub-processing activities, permitted purposes, and limitations
5. Sub-processor Obligations: Core obligations including compliance with instructions, security measures, and data protection requirements
6. Technical and Organizational Measures: Required security measures and standards for data protection
7. Confidentiality: Confidentiality obligations regarding processed data and business information
8. Data Breach Notification: Procedures and timeframes for reporting data breaches
9. Audit Rights: Processor's rights to audit sub-processor's compliance
10. Duration and Termination: Term of the agreement and termination provisions
11. Return or Deletion of Data: Obligations regarding data handling upon termination
12. Liability and Indemnification: Allocation of risks and responsibilities between parties
13. Governing Law and Jurisdiction: Specification of Malaysian law and jurisdiction
1. Cross-border Data Transfers: Required if data will be transferred outside Malaysia, specifying compliance with PDPA requirements
2. Insurance Requirements: Specific insurance obligations for the sub-processor, recommended for high-risk processing
3. Business Continuity: Requirements for business continuity and disaster recovery, important for critical services
4. Sub-subprocessing: Terms for any further delegation of processing, if permitted
5. Service Levels: Specific performance metrics and standards, if applicable to the services
6. Change Control: Procedures for managing changes to services or technical measures
1. Description of Processing Activities: Detailed description of sub-processing activities, including data categories and purposes
2. Technical and Security Measures: Detailed specifications of required security measures and controls
3. Data Processing Instructions: Specific instructions and procedures for data processing activities
4. Service Level Agreement: Detailed service levels and performance metrics if applicable
5. Fee Schedule: Pricing and payment terms for sub-processing services
6. Contact Details: Key contacts and escalation procedures for operational and emergency matters
7. Data Breach Response Plan: Detailed procedures and responsibilities in case of data breaches
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