Is the electronic signature legal in Malaysia? What legal regulation is the electronic signature mainly subject to?

Electronic signatures are legal in Malaysia and are regulated by the ELECTRONIC COMMERCE  ACT  (ECA) of 2006, the Digital Signature Act (DSA) of 1997 and the DIGITAL SIGNATURE REATIONS of 1998 ("DSR").

What is an electronic signature in Malaysia?

The ECA defines an electronic signature as any letter, character, number, voice, or any other symbol, or any combination thereof, created in electronic form and used as a signature by individuals. In essence, any individual who attaches their "name" to the PDF will be considered an electronic signature. The main purpose of the ECA is to identify electronic messages in commercial transactions.

The DSA defines a digital signature as converting a message using an asymmetric password system (created using a private key corresponding to the signer's public key). This allows the person with the initial message and the signer public key to determine whether the message has changed after conversion.

What are the types of electronic signature recognized in Malaysia? What are the requirements for each separation?

Malaysia recognizes two electronic signatures, namely electronic signature and enhanced electronic signature (namely digital signature).

1.Electronic signature

For an electronic signature to be acceptable, it must meet the following requirements under the ECA:

• Attachment or association: An electronic signature must be attached to an electronic message or logically associated with an electronic message.
• Identity and approval: An electronic signature must fully identify individuals and indicate that they approve information related to the signature.
• Reliability: Given the purpose and circumstances of requiring signatures, electronic signatures must be as reliable as possible.

The electronic signature is considered reliable if the following conditions are met:

• The method for creating an electronic signature is associated with and controlled by that person.
• Any changes made to the electronic signature after signature are detectable.
• Any changes made to the file after signature are detectable.

If these requirements in Section 9 of the ECA are met, the electronic signature meets the legal standards.

2.Digital signature

Under DSA Article 62, a digital signature must meet the following criteria to be legally binding:

• Validation by referring to the public key listed in a valid certificate issued by the licensing authority.
• Additional by the signer to sign the message.
• The recipient does not know or notice that the signer breached his obligation as a subscriber or did not legally hold the private key used to attach the digital signature.

Under the 1998 DS regulations, to generate key pairs, or to create, use, or verify digital signatures, you must use approved digital signature schemes. The criteria for such schemes are as follows:

• It must use the secure public key algorithm to generate the key pairs, and use the secure public key algorithm combined with the hash function to create a digital signature.
• The digital signature must comply with Schedule 4 of Article 81.
• The digital signature must not be modified to include a subconscious channel (in cryptography, it is used for secret communication).
• Key pairs used for message encryption and decryption must not be used to create and validate a digital signature.

Under which circumstances is the use of electronic signatures restricted in Malaysia?

The use of electronic signatures is restricted in the following documents or scenarios:

• Sign the letter of authorization.
• Execution of wills, wills, and trusts.
• Sign negotiable notes, drafts and promissory notes.
• Implement documents related to property governed by the Malaysian National Land Code.
• Sign statutory declarations in accordance with the Statutory Declaration Act.