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Malaysia Cyber Security Act 2024 (NACSA) Guide for Cybersecurity Vendors and Partners

Malaysia's Cyber Security Act 2024 (Act 854) does two things that matter to anyone selling cybersecurity there. It puts legal duties on organisations that run National Critical Information Infrastructure (NCII). It also makes providers of managed SOC monitoring and penetration testing hold a licence from the National Cyber Security Agency (NACSA). The first creates demand. The second changes who is allowed to deliver it.

Last reviewed 11 November 2026 · Based on the Act, its 2024 regulations and law-firm summaries (sources at the end) · Not legal advice

Key facts

  • In force: 26 August 2024, together with four regulations covering incident notification, risk assessment and audit periods, compounding of offences, and licensing of cyber security service providers.
  • Regulator: NACSA, the National Cyber Security Agency, working with an NCII sector lead for each sector. Sector leads were appointed from 11 September 2024.
  • Who has duties: entities designated as NCII entities by their sector lead, across 11 sectors.
  • Incident notification: notify NACSA's Chief Executive and the sector lead immediately on becoming aware of an incident, then provide further details within 6 hours and a fuller report within 14 days.
  • Assurance cycle: a cyber security risk assessment every year and an audit at least every 2 years, or more often if NACSA's Chief Executive directs.
  • Licensing: providers of managed SOC monitoring and penetration testing services must hold a NACSA licence. Providing these services without one can mean a fine of up to RM500,000, up to 10 years' imprisonment, or both.

1. The 11 NCII sectors

An organisation only takes on NCII duties once its sector lead designates it. In practice, the large operators in these sectors are where the Act creates new budget.

SectorSector
GovernmentHealthcare Services
Banking and FinanceWater, Sewerage and Waste Management
TransportationEnergy
Defence and National SecurityAgriculture and Plantation
Information, Communication and DigitalTrade, Industry and Economy
Science, Technology and Innovation

For banking and finance, Bank Negara Malaysia has built the sector Code of Practice into its RMiT policy as Appendix 12. See our BNM RMiT guide.

2. NCII entity duties mapped to product categories

DutyWhat the Act requiresTypical product categories
Code of practice (s. 21)Implement the measures, standards and processes in the code of practice for the sectorDepends on the code: typically SOC/MDR, PAM and MFA, vulnerability management, backup
Risk assessment (s. 22)A cyber security risk assessment at least once a yearRisk assessment services, attack surface management, GRC
Audit (s. 22)An audit at least once every 2 years, or more often if directedAudit and assurance services, compliance evidence and reporting
Incident notification (s. 23)Notify immediately, add details within 6 hours, fuller report within 14 daysSIEM and detection, SOC/MDR, IR retainers, forensics
Cyber security exercises (s. 24)Take part in exercises when NACSA's Chief Executive directsCyber drills, tabletop exercises, cyber range
Information to sector lead (s. 20)Provide information on the NCII, including material changesAsset inventory, CMDB, architecture documentation

3. Licensing of SOC and penetration testing providers

This is the part of the Act that changes the channel. Under the licensing regulations, two services need a NACSA licence when provided in Malaysia:

Summaries of the regulations note exemptions, including services by government entities, services between related companies, and services for systems located outside Malaysia. Licensees must keep records of the services they provide for at least 6 years, and must apply for renewal at least 30 days before expiry.

What it means for vendors and partners

4. Penalties

Maximum penalties under the Act, as summarised by law firms; check the Act for the exact wording.

BreachSectionMaximum penalty
Failing to implement the code of practices. 21(5)RM500,000 and/or 10 years
Failing to notify a cyber security incidents. 23(2)RM500,000 and/or 10 years
Providing SOC monitoring or pen testing without a licences. 27(5)RM500,000 and/or 10 years
Failing to conduct or submit a risk assessment or audits. 22(7)RM200,000 and/or 3 years
Failing to comply with incident directionss. 35(5)RM200,000 and/or 3 years
Failing to provide NCII information to the sector leads. 20(6)RM100,000 and/or 2 years
Licensee failing to keep service recordss. 32(3)RM100,000 and/or 2 years

5. Using the Act in a sales conversation

Related: BNM RMiT · MAS TRM (Singapore) · Channel Map

Sources

This guide summarises public sources on Malaysia's Cyber Security Act 2024 for people who sell cybersecurity. It is not legal advice; check the Act, its regulations and NACSA guidance for your situation. Spotted something out of date? Tell us. Get regulation changes in the weekly newsletter.