ESIGNATURE LEGALITY GUIDE
Electronic Signatures on contracts have been legally recognized in Malaysia since 1997, starting with the enactment of the Digital Signature Act 1997 (‘DSA’), followed later by Electronic Commerce Act 2006 (‘ECA’)
Yes
Yes
Tiered
eSignatures are legally valid and admissible in the court of law. Malaysia follows a hierarchical root of trust model where eSignatures or digital signatures issued by a Certifying Authority are considered legally valid. Specific use cases for eSignatures are indicated in the EC Act.
Malaysian law (The Contracts Act 1950 and applicable common law) highlights that a handwritten signature isn’t always needed for a contract to be considered credible, and that contracts can’t be refused for simply being electronic. They can be seen as such as long as legally able individuals have reached an agreement, whether by verbally agreeing, electronically or physically signing something. The Electronic Commerce Act 2006 states that electronic contracts can’t be dismissed for being electronic. Malaysia’s electronic signature law does not contain any restrictions on the type of agreement it applies to when using a digital signature.
*The information on this site is “AS IS” and for general information purposes only.
Use cases where an SES is typically appropriate include:
Use cases where an AES is typically appropriate include:
Use cases that are specifically barred from digital or electronic processes or that include explicit requirements, such as handwritten (e.g. wet ink) signatures or formal notarial process that are not usually compatible with electronic signatures or digital transaction management.
| Institute | Regulatory Body/CA/DSC Providers | Supported by emSigner | Website |
|---|---|---|---|
| Malaysian Communications and Multimedia Commission (MCMC) | CA | Yes | https://www.mcmc.gov.my/ |
| Pos Digicert Sdn Bhd | CA | Yes | https://www.digicert.com.my |
| MSC Trustgate.Com Sdn Bhd | CA | Yes | https://www.msctrustgate.com |
| Telekom Applied Business Sdn Bhd | CA | Yes | https://www.tab.com.my |
| Raffcomm Technologies Sdn Bhd | CA | Yes | https://www.rafftech.my |
“Digital Signature” means a transformation of a message using an asymmetric cryptosystem such that a person having the initial message and the signer’s public key can accurately determine
(a) whether the transformation was created using the private key that corresponds to the signer’s public key;
(b) whether the message has been altered since the transformation was made
[1] An AES is an “advanced electronic signature”, a type of electronic signature that meets the following requirements:
(a) it is uniquely linked to the signatory;
(b) it is capable of identifying the signatory;
(c) it is created using means that are under the signatory’s sole control;
(d) it is linked to other electronic data in such a way that any alteration to the said data can be detected.
[2] A QES is a specific digital signature implementation that has met the particular specifications of a government, including using a secure signature creation device, and been certified as ‘qualified’ by either that government or a party contracted by that government.
DISCLAIMER: This information is intended to help you understand the legal framework of electronic signatures. However, eMudhra cannot provide legal advice. The law of electronic signatures is constantly evolving. This guide is not intended as a legal advice and should not serve as a substitute for professional legal advice. You should consult an attorney regarding any specific legal concerns.
eMudhra, and all associates including agents, officers, employees or affiliates, are not liable for any direct, indirect, incidental, special, exemplary or consequential damages.
ABOUT THE GUIDE
The eSignature Legality Guide is the result of legal research into the laws and practices regarding eSignature on a country-by-country basis. Each country-level analysis was conducted by local law firms located in that country, in that country’s local language. This legal analysis was then supplemented with complementary research on eSignature and digital signature technology standards conducted by independent technology experts. Together, this information is provided as a public resource to understand eSignature legality, and clarify some of the common misconceptions about international eSignature legality.
A basic measure of eSignature legality in a country is whether courts will admit eSignatures as evidence in court. In most countries in the world, an eSignature cannot be rejected simply because it is electronic, meaning that it should be admissible, subject to proof. Learn more about how DocuSign helps you prove an eSignature validity in court, below.
While there are exceptions for very specific types of transactions, eSignatures, independent of the underlying technology, may be used for the majority of general business transactions in most countries. Issues that may restrict general business use include local technology requirements or other restrictions on special transactions types. Learn more about specific transaction types, below.
‘Tiered’ countries recognize Qualified Electronic Signature (QES, or the locally named equivalent) as a distinct type of eSignature. In these countries, a QES has special legal status in the form of presumed authenticity, and may be legally required for a few, specific transaction types. In spite of this, a non-QES eSignature can still be submitted as evidence in court even in Tiered countries, so long as the party presenting it has sufficient evidence to prove that it is valid. Countries imposing QES standards often struggle to promote electronic business transactions, especially across country borders. ‘Open’ countries have no such technology requirements or eSignature types that receive special legal status. Learn more about eSignature legality at https://www.emsigner.com/
