Ensure compliance. Avoid penalties. Protect your digital infrastructure.
What Penang Businesses Need to Know About Malaysia's Cyber Security Act 2024
Introduction: The New Cybersecurity Mandate for Malaysian Businesses
In June 2024, Malaysia enacted the Cyber Security Act 2024 (Act 854) to strengthen the protection of National Critical Information Infrastructure (NCII). If your business operates in sectors like banking, logistics, ICT, healthcare, manufacturing, or government services - you may fall under its scope. Companies in Penang that handle sensitive systems or offer cybersecurity services are legally required to follow strict rules on risk assessment, incident reporting, and licensing.
Our team helps local organizations interpret and comply with this Act - so you can operate securely and legally.
Who Must Comply?
You're likely affected if you are:
A critical service provider in sectors such as: Energy, water, telecommunications, finance, transport, or healthcare
A third-party IT or cybersecurity vendor handling NCII systems
A company with cloud, data centers, or SOC infrastructure in Malaysia
Even overseas companies operating NCII systems located in Malaysia are subject to the Act.
Key Requirements Under the Cyber Security Act
Annual Risk Assessment
All NCII entities must perform and submit annual cybersecurity risk assessments to NACSA.
Cybersecurity Audit (Every 2 Years)
Organizations must undergo formal audits at least once every two years—or more frequently if ordered by authorities.
Mandatory Incident Reporting
Initial notification to NACSA and sector lead: within 6 hours
Detailed report: within 14 days
(Include scope, actors involved, severity, systems affected, response actions)
Use of Licensed Cyber Security Providers
You must only use NACSA-licensed Cyber Security Service Providers (CSSPs) for:
Security Operations Center (SOC) services
Penetration Testing
Digital forensics and similar services
Record-Keeping & Government Cooperation
All service providers must retain logs of services and clients for at least 6 years and cooperate with inspections or investigations.
Penalties for Non-Compliance
Offense
Description
Maximum Penalty
Subsection 20(6)
Non-compliance by a NCII entity
with requests or requirements related
to information disclosure, material
changes, or reporting.
RM100,000 or 2 years or both
Subsection 20(7)
Non-compliance by a NCII sector
lead with the requirement to notify
the Chief Executive of NACSA about
certain information.
RM100,000
Subsection 22(7)
Failure of an NCII entity to conduct
or submit required cyber security risk
assessments or audits.
RM200,000 or 3 years or both
Subsection 22(8)
Failure to comply with direction from
the Chief Executive regarding
additional risk assessments or audits.
Fine up to RM100,000.
Subsection 24(4)
Non-compliance with directions from
the Chief Executive related to cyber
security exercises.
Fine up to RM100,000.
Subsection 32(3)
Failure by a licensee to maintain or
provide records of cyber security
services as required.
RM100,000 or 2 years or both
Subsection 21(5)
Failure to comply implement code of
practice.
Fine up to RM500,000 or max 10
years or both.
Subsection 23(2)
Failure to report Cybersecurity
incident to NACSA
Fine up to RM500,000 or max 10
years or both.
Our Penang-based IT team provides end-to-end support to ensure your business complies with the Cyber Security Act 2024.
Our Services:
NCII readiness assessment
Gap analysis vs. NACSA standards
Incident response planning
Annual risk assessments
Bi-annual audit support
Documentation & compliance reporting
Penetration testing
SOC monitoring
Threat detection and incident response
Internal staff training
SOP development for incident response
Phishing Campaign
Next Steps
Is Your Business Ready?
Use our quick checklist:
Have you identified if you’re an NCII entity?
Are you prepared to report incidents in under 6 hours?
Have you conducted a formal risk assessment in the past 12 months?
Are your cybersecurity vendors NACSA-licensed?
If you answered "no" to any of the above - we can help.
Need a cybersecurity compliance check or audit-ready risk assessment?
Schedule a free 30-minute consultation today.
Need help with a tech issue or have questions about cybersecurity? Our expert team is always ready to assist you with practical solutions and friendly support.
Dedicated Phone Number
+604-619 2740
Mobile Phone Number
+6012-330 8765 (Mr Lim Boon Hung)
+6016-410 0209 (Mr Lim Boon Wee)
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