Are electronic signatures legal in Malaysia?
Malaysia has legally recognised electronic signatures since 1997, since The Digital Signature Act, and then later with the 2000 Electronic Commerce Act. Which has given businesses the option to use them whilst trading.
Yes, e-signatures are court admissible
Each country has it’s own regulations that determine whether an electronic signature is seen as legal or not. So, as long as your electronic signature adheres to these, a signature won’t be rejected simply for not being handwritten.
Yes, e-signatures can be used in business
Whilst 100% legal; there are exceptions for very specific types of transactions. It is still up to the discretion of the independent user, or governing body, whether they are used or not. As each business needs are different and the agreements themselves may vary. We always advise you to speak with an authority within your businesses category.
Legal Model
Malaysia’s legal model is a tiered one. This means that Qualified Electronic Signatures are seen as a legal type of e-signature. This doesn’t mean that a non-QES e-Signature can’t be submitted in court, but it will need extra evidence to support it.
Legal Classification
Malaysia operates a Common Law system, which is based on:
- Judicial decisions are seen as binding
- Laws aren’t always of a written structure
- Few provisions are hinted at into the contract, by law
- Generally, everything is permitted that isn’t expressly prohibited by law
Few provisions are implied into a contract under the common law system – so it’s important to cover all the terms governing the relationship between the parties to a contract in the contract itself. This usually means that contracts are typically longer than one in a civil law country.
Full Summary
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. And The Electronic Commerce Act 2006 states that electronic contracts can’t be dismissed for being electronic.