Malaysia has legally recognized electronic signatures on contracts since 1997, starting with the The Digital Signature Act [Act 562] and later with the 2000 Electronic Commerce Act.
The Electronic Commerce Act defines that any information shall not be denied legal effect, validity or enforceability on the ground that it is wholly or partly in an electronic form.
Electronic Commerce Act provides for legal recognition of electronic messages in commercial transactions
An eSignature is broadly defined as “any letter, character, number, sound or any other symbol or any combination thereof created in an electronic form adopted by a person as a signature.” Some attributes of an e-signature:
All the contracts are by and large valid if legally competent parties reach a consensus, whether they agree verbally, electronically or in a physical paper document (This is as per definition of Contracts Act 1950 and applicable common law). Electronic Commerce Act 2006 ("ECA") states that all agreements and contracts cannot be denied enforceability solely because they are done electronically. In case a dispute ever arises in the future to prove a valid contract, agreement parties may have to present evidence in court. Leveraging digital transaction management solutions like eSignature, parties can provide electronic documentation which may be permissible in evidence under the Evidence Act 1950, to support the authenticity and valid acceptance of a contractual agreement.
According to the Electronic Commerce Act, eSignatures shall not apply to the following transactions or documents: