EMBRACING THE GROWTH AND TRENDING DEMAND OF ECOMMERCE

EMBRACING THE GROWTH AND TRENDING DEMAND OF ECOMMERCE IN MALAYSIA Dato Dr Amirudin Abdul Wahab CEO Cybersecurity Malaysia 16 December 2017 APEC ECBA, Chengdu, China Copyright © 2017 Cyber. Security Malaysia

Content • The growth and milestone of e. Commerce in Malaysia • Among the Initiatives by Government – Malaysia Trustmark – National E-Commerce Strategic Roadmap • Privacy Concern in Cross-Border – Privacy protection between local authority and APEC Privacy Framework Copyright © 2017 Cyber. Security Malaysia

Growth and Trend Demand 2012 2013 2014 2016 2017 • Emerging growth of e-commerce in Malaysia • Establishment of Malaysia Trustmark with Global Recognition under World Trustmark Alliance (WTA) • Personal Data Protection Act (PDPA 2010) was gazetted on 2013 • #My. Cyber. SALE for biggest online shopping event (1 st Edition) • National e. Commerce Strategic Roadmap (Ne. SR) launched by PM • Digital Free Trade Zone (DFTZ) launched in Malaysia Copyright © 2017 Cyber. Security Malaysia 3

Growth and Trend Demand of E-Commerce in Malaysia 2011 Malaysia Trustmark established Copyright ©

Growth and Trend Demand Copyright © 2017 Cyber. Security Malaysia 5

Malaysia Trustmark Establishment Memorandum Jemaah Menteri from Ministry of International Trade and Industry MITI: ID/DP(R) 427/1 Jld. 24(12) - 19 Nov 2010 “The establishment of Malaysia Trustmark aims to increase the use of e-Commerce and facilitate e-Payments. Public agencies and companies conducting e-Commerce and e-Payment operations should apply for Trustmark Malaysia certificates and logos. Malaysia Trustmark will be given to public agencies as well as companies that have achieved the established standards and compliance. ” Copyright © 2017 Cyber. Security Malaysia 6

World Trustmark Alliance (WTA) Malaysia is one of the World Trustmark Alliance (WTA) member, an organization with mutual interest that work together to promote trustworthy e-commerce environment. WTA members work towards the harmonization of the good e-commerce Code of Conduct, promote cross-border cooperation in recognizing Trustmark members, privacy protection and dispute resolution. http: //worldtrustmark. org/index. php Copyright © 2017 Cyber. Security Malaysia 7

Malaysia Trustmark Principles TL 1, TL 2 & TL 3 has all principles. Difference is the Security Domain Checklist Disclosure of Information • Accuracy and accessibility of information: marketing, organisation, goods/services, transactions and warranty Practices • E-Business practices applied by Organisation: cancellation, return, and refund policies; customer service and/or support of the goods and services Security • Security of consumer’s information and electronic transactions Data Protection Principles / Privacy Alternative Dispute Resolution • Protection for Customer Data in commercial environment: 7 principles in PDPA 2010 – General, Notice and Choice, Disclosure, Retention, Security, Data Integrity and Access • Consumer Complaint and Dispute Resolution Management: internal & external mechanism to resolve any disputes relating to a transaction Copyright © 2017 Cyber. Security Malaysia 8

Trustmark Collaboration Benefits to e-Commerce Merchant Promote trustworthy and secure e-commerce environment for the benefit of both merchant and customer Protect business reputation and image by reducing the risk of security breaches and safe financial transaction Give confident and feel comfortable for potential customers to do transaction Increase percentage of repeat customers Distinguish the business by having attestation from Government’s agency Copyright © 2017 Cyber. Security Malaysia 9

National e. Commerce Strategic Roadmap (Ne. SR) • Ne. SR was officially launched by the Prime Minister of Malaysia in 13 October 2016. • 6 thrust areas are developed to support the following objectives: i. Doubling e-Commerce growth ii. Supportive Governance framework Copyright © 2017 Cyber. Security Malaysia 10

6 Thrust Areas in Ne. SR Copyright © 2017 Cyber. Security Malaysia 11

Digital Free Trade Zone (DFTZ) • Digital Free Trade Zone (DFTZ) was launched on 3 November 2017 • The DFTZ is established to facilitate seamless cross-border trade and enable local businesses to export their goods with a priority for e. Commerce. • http: //1 dftz. com/ Copyright © 2017 Cyber. Security Malaysia 12

DFTZ Development of Kuala Lumpur Internet City (KLIC) as premier digital hub Copyright © 2017 Cyber. Security Malaysia Virtual Zone e-Services Platform Development of a regional e. Commerce and Logistics Hub in KLIA Aeropolis Satellite Services Hub e-Fulfillment Hub Physical Zone to efficiently manage cargo clearance and other processes needed for cross-border trade 13

DFTZ Copyright © 2017 Cyber. Security Malaysia 14

Privacy Concern in Cross. Border Trade Personal Data Protection Act (PDPA) 2010 i. applies to data processed in Malaysia only ii. does not permit a data user to transfer any personal data outside Malaysia except has consent from the individual, for performance of contract or legal requirement iii. excluded for Malaysian Federal and State governments Copyright © 2017 Cyber. Security Malaysia 15

Bridging the Gap in Cross. Border Privacy � Merging the PDPA implementation with APEC Privacy Framework under APEC Cross-Border Privacy Rules system (APEC CBPRs) � Privacy Enforcement Authorities (PEA) from Malaysia need to participate in the APEC Cross-border Privacy Enforcement Arrangement (CPEA) APEC CBPRs Privacy Laws PEA AA � Accountability Agent (AA) will be appointed to assess and certify the information controller Copyright © 2017 Cyber. Security Malaysia 16

Key Initiatives for e-Commerce in Malaysia KPDNKK – Ministry of Domestic Trade, Co-operatives and Consumerism KKMM – Ministry of Communications and Multimedia MDEC – Malaysia Digital Economy Corporation CSM – Cyber. Security Malaysia KPDNKK (CPA 1999) MITI & MDEC E-Commerce CPA – Consumer Protection Act PDPA – Personal Data Protection Act CSM KKMM (PDPA 2010) APEC Copyright © 2017 Cyber. Security Malaysia 17