Are eSignatures Legally Binding in Malaysia?

In Malaysia, electronic signatures are legally recognised and governed by the Digital Signature Act 1997 (DSA) and the Electronic Commerce Act 2006 (ECA). Under the ECA, information presented in electronic form cannot be denied legal validity or enforceability solely because it is electronic.

Documents that can be signed electronically

According to the ECA, in Malaysia, any commercial transaction carried out digitally, including transactions conducted by the state and federal governments, can use an electronic signature.

Documents that may not be electronically signed

The use of electronic signatures is not permitted on the following documents:

Trusts
Powers of attorney
Negotiable instruments
Wills and codicils

Additionally, some types of documents are required to be notarised or attested by a commissioner for oaths/notary public that are unable to be signed electronically. These include Instruments Dealing with Real Property and Instruments of Transfers.

Types of e-signature permitted in Malaysia

The ECA defines an electronic signature as ‘a letter, character, number, sound, or symbol, or a combination of these elements, created in electronic form and adopted by an individual as a signature.’ It states that an e-signature must meet the criteria below:

Be logically associated with or attached to the electronic message
Suitably identify the signer and confirm their intent to approve the content of the electronic message
Be appropriately reliable for the given purpose of the signature and the reasons why the signature is required

The DSA defines a digital signature as “the transforming of a message using an asymmetric cryptosystem so that the person with the initial message and the signer’s public key can determine whether the transformation was created with a private key that works with the signer’s public key and whether the message has been changed since the transformation was made.”

Notable legality changes since 2020

None.

Publicly Accessible Links to Laws/Regulations Discussed

Disclaimer

The content provided on this website is meant for general informational use only and does not constitute legal advice. Legal regulations on this topic can evolve rapidly, so E-Sign does not ensure that the information presented here is always up-to-date or accurate. If you have particular legal concerns regarding any details on this site, it is recommended that you consult with a licensed attorney in your jurisdiction.

Last Updated 9th October 2024

The Legality of eSignatures in Malaysia

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