Are electronic signatures legal in Malaysia?

The Electronic Commerce Act 2006

The Electronic Commerce Act 2006 (Act 658) applies to commercial transactions conducted through electronic means, including those of the Federal and State Governments (s. 2(1)). Using electronic messages isn't mandatory: a person has to consent to using, providing or accepting them (s. 3). Under section 9(1), where a law requires a signature on a document, an electronic signature meets it if it:

• is attached to or logically associated with the electronic message;
• adequately identifies the person and adequately indicates their approval of the information it relates to;
• is as reliable as is appropriate given the purpose and circumstances in which the signature is required.

Section 9(2) says a signature is reliable enough if the means of creating it is linked to and under the control of that person only, and any later change to the signature or the document is detectable. Where a law requires a seal, a digital signature under the Digital Signature Act fulfils it (s. 10), and section 11 covers witnesses' signatures.

The Digital Signature Act 1997

The Digital Signature Act 1997 (Act 562) deals with signatures verified against a valid certificate from a licensed certification authority. Such a digital signature satisfies a legal signature requirement and is as legally binding as a handwritten one (s. 62), a digitally signed message counts as a written document (s. 64), and the Act presumes, among other things, that the signature is the subscriber's and was affixed with intent to sign (s. 67). Certification authorities are licensed by the Malaysian Communications and Multimedia Commission (MCMC).

What the 2006 Act excludes

The Schedule to the Electronic Commerce Act keeps four kinds of document outside it (s. 2(2)):

• Powers of attorney.
• The creation of wills and codicils.
• The creation of trusts.
• Negotiable instruments.

The Minister can amend the Schedule by order (s. 2(3)), so check for any order before relying on the list. Other statutes, such as those governing land dealings, can also set their own form rules.

Where SignMaster fits in Malaysia

SignMaster provides electronic signatures with an audit trail, not certificate-based digital signatures under the 1997 Act. That suits commercial paperwork outside the Schedule, where both sides consent: service agreements, quotes, purchase orders, supplier terms and NDAs. Section 9(2) asks whether a change would be detectable; each completed PDF carries a SHA-256 fingerprint of every file for exactly that, and ends with a certificate of completion recording each signer's email, IP address, consent and timestamps.