Businesses in the region are finding themselves increasingly involved in digital networks and platforms as part of the commercial process. This includes payment applications, big data analytics, artificial intelligence, and cognitive computing, all of which are heavily reliant on data sharing. Issues of digital data governance have thus come to the forefront as businesses seek to balance digital initiatives and data protection.
To assist businesses on this front, the ASEAN Digital Ministers' Meeting has, on 22 January 2021, approved the ASEAN Data Management Framework ("DMF") and Model Contractual Clauses for Cross Border Data Flows ("MCCs"). These initiatives were developed by the Working Group on Digital Data Governance chaired by Singapore.
- The DMF provides a step-by-step guide for businesses to put in place a data management system, which includes data governance structures and safeguards.
- The MCCs are template contractual terms that may be included in agreements between businesses transferring personal data to each other across borders.
Businesses developing their digital operations should be aware of the need to develop an adequate system to handle all their data, and should pay close attention to the guidance provided by the DMF in this regard. Parties transferring personal data across borders should be aware of the data protection requirements they must comply with when conducting such transfers, and consider incorporating the MCCs and adapting them accordingly.
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