Electronic Commerce in Malaysia

LAWS OF MALAYSIA answer 658 ELECTRONIC COMMERCE ACT 2006 2 Laws of Malaysia ACT 658 picture of Royal Assend Date of publication in the Gazette 30 August 2006 31 August 2006 Publishers replicateright C PERCETAKAN NASIONAL MALAYSIA BERHAD All rights reserved. No part of this publication may be reproduced, stored in a retrieval clay or transmitted in each bring in or by every promoter electronic, mechanical, photocopying, recording and/or oppositewise without the forward permission of Percetakan Nasional Malaysia Berhad (Appointed Printer to the Government of Malaysia).Electronic duty LAWS OF MALAYSIA do 658 ELECTRONIC COMMERCE ACT 2006 3 ARRANGEMENT OF SECTIONS burst I PRELIMINARY Section 1. 2. 3. 4. 5. Short title and low gear Application usage non mandatory Reference to otherwise written natural jurisprudences Interpretation PART II LEGAL RECOGNITION OF ELECTRONIC MESSAGE 6. 7. jural knowledge of electronic meat Formation and validity of contr acquit PART th ird FULFILMENT OF LEGAL REQUIREMENTS BY ELECTRONIC MEANS 8. 9. 10. 11. 12. 13. report Signature shut Witness Original Retention of scroll 4 Section Laws of Malaysia 14. 15. 16. Copy Prescribed form Service and speech communication PART IV conversation OF ELECTRONIC MESSAGE ACT 658 17. 18. 19. 20. 21. 22. 23. 24. Attri besidesion of electronic marrow table of contents of electronic message Each electronic message to be regarded severally Time of dispatch Time of notice correct of dispatch Place of receipt Acknowledgement of receipt PART V MISCELLANEOUS 25. Regulations SCHEDULEElectronic transaction LAWS OF MALAYSIA carry 658 ELECTRONIC COMMERCE ACT 2006 5 An Act to admit for legal recognition of electronic messages in moneymaking(prenominal) proceedings, the use of the electronic messages to fulfill legal compulsions and to enable and facilitate mercenary proceeding with and through the use of electronic intend and other matters connected in that locationwith. ENAC TED by the fan tan of Malaysia as follows PART I PRELIMINARY Short title and commencement 1. (1) This Act may be cited as the Electronic Commerce Act 2006. 2) This Act comes into operation on a date to be establish by the Minister by nonification in the Gazette. Application 2. (1) field of operations to section 3, this Act shall apply to all(prenominal) commercialized transaction conducted through electronic means including commercial transactions by the Federal and deposit Governments. (2) This Act shall not apply to the transactions or memorandums undertake in the Schedule. 6 Laws of Malaysia ACT 658 (3) The Minister may by order amend, vary, wipe out from or add to the Schedule. Use not mandatory 3. 1) Nothing in this Act shall make it mandatory for a psyche to use, provide or accept every electronic message in every commercial transaction unless the person consends to the using, providing or accepting of the electronic message. (2) A persons con direct to use, pro vide or accept all electronic message in any commercial transaction may be inferred from the persons conduct. Reference to other written natural fairnesss 4. The application of this Act shall be supplemental and without prejudice to any other laws regulating commercial transactions. Interpretation 5.In this Act, unless the context otherwise requires electronic means the technology of utilizing electrical, optical, magnetic, electromagnetic, biometric, photonic or other similar technology Minister means the Minister aerated with the responsibility for domestic trade and consumer affairs electronic message means an in organic law generated, sent, acquire or stored by electronic means occasion means a person by whom or on whose behalf, the electronic message is generated or sent addressee means a person who is intend by the brain to receive the electronic message Electronic Commerce culture touch on system means an electronic system for generating, sending, receiving, storing or bear upon the electronic message electronic tactual sensation means any letter, character, number, sound or any other symbol or any combination thereof created in an electronic form adopted by a person as a key signature commercial transactions means a single communication or multiple communication theory of a commercial nature, whether contractual or not, which includes any matters relating to the supply or exchange of goods or services, agency, investments, financing, banking and insurance. PART IILEGAL RECOGNITION OF ELECTRONIC MESSAGE Legal recognition of electronic message 6. (1) Any info shall not be denied legal strength, validity or enforceability on the ground that it is wholly or partly in an electronic form. (2) Any information shall not be denied legal effect, validity or enforceability on the ground that the information is not contained in the electronic message that gives rise to such legal effect, but is merely referred to in that electronic message, provided t hat the information being referred to is convenient to the person a boostst whom the referred information might be used.Formation and validity of contract 7. (1) In the formation of a contract, the communication of proposals, acceptance of proposals, and revocation of proposals and acceptances or any related to communication may be expressed by an electronic message. (2) A contract shall not be denied legal effect, validity or enforceability on the ground that an electronic message is used in its formation. Laws of Malaysia PART one-third FULFILMENT OF LEGAL REQUIREMENTS BY ELECTRONIC MEANS ACT 658 Writing 8. Where any law requires information to be in writing, the requirement of the law is fulfilled if the information is contained in an electronic message that is ready to hand(predicate) and plain so as to be usable for subsequent interview. Signature 9. 1) Where any law requires a signature of a person on a scroll, the requirement of the law is fulfilled, if the document is in the form of an electronic message, by an electronic signature which (a) is attached to or is logically associated with the electronic message (b) adequately identifies the person and adequately indicates the persons approval of the information to which the signature relates and (c) is as reliable as is appropriate condition the blueprint for which, and the circumstances in which, the signature is required. 2) For the conceptions of paragraph (1)(c), an electronic signature is as reliable as is appropriate if (a) the means of creating the electronic signature is cogitate to and under the control of that person only (b) any alteration make to the electronic signature after the season of signing is detectable and (c) any alteration made to that document after the time of signing is detectable. 3) The digital Signature Act 1997 Act 562 shall continue to apply to any digital signature used as an electronic signature in any commercial transaction. Electronic Commerce Seal 9 10. (1 ) Where any law requires a seal to be affixed to a document, the requirement of the law is fulfilled, if the document is in the form of an electronic message, by a digital signature as provided under the Digital Signature Act 1997. 2) Notwithstanding subsection (1), the Minister may, by order in the Gazette, prescribe any other electronic signature that fulfills the requirement of affixing a seal in an electronic message. Witness 11. Where any law requires the signature of a witness on a document, the requirement of the law is fulfilled, if the document is in the form of an electronic message, by an electronic signature of the witness that complies with the requirements of section 9.Original 12. (1) Where any law requires any document to be in its original form, the requirement of the law is fulfilled by a document in the form of an electronic message if (a) there exists a reliable assurance as to the truth of the information contained in the electronic message from the time it is first generated in its final form and (b) the electronic message is accessible and intelligible so as to be usable for subsequent refer. 2) For the purposes of paragraph (1)(a) (a) the criteria for assessing the integrity of the information shall be whether the information has remained complete and unaltered, apart from the addition of any second gear or any change which arises in the normal course of communication, warehousing and display and (b) the standard of reliability required shall be assessed in the airy of the purpose for which the document was generated and in the light of all other germane(predicate) circumstances. 10 Laws of Malaysia ACT 658 Retention of document 13.Where any law requires any document to be kept up(p), the requirement of the law is fulfilled by retaining the document in the form of an electronic message if the electronic message (a) is retained in the format in which it is generated, sent or get, or in a format that does not materially change the information contained in the electronic message that was originally generated, sent or received (b) is accessible and intelligible so as to be usable for subsequent reference and (c) identifies the origin and destination of the electronic message and the date and time it is sent or received.Copy 14. Where any law requires any document to be retained, served, sent or delivered in more than one copy, the requirement of the law is fulfilled, if the document is in the form of an electronic message, by retention, service, sending or words of the document in one copy. Prescribed form 15.Where any law requires any document to be in a prescribed form, the requirement of the law is fulfilled by a document in the form of an electronic message if the electronic message is (a) formatted in the same or substantially the same way as the prescribed form (b) accessible and intelligible so as to be usable for subsequent reference and (c) capable of being retained by the other person. Service and d elivery 16. (1) Where any law requires any document to be served, sent or delivered, the requirement of the law is fulfilled by the Electronic Commerce 11 ervice, sending or delivery of the document by an electronic means if an information processing system is in limit (a) to commit the origin, destination, time and date of service, sending or delivery and (b) for the mention of receipt, of the document. (2) This section does not apply to (a) any maintain of default, notice of demand, notice to show cause, notice of repossession or any similar notices which are required to be served prior to commencing a legal proceeding and (b) any originating process, pleading, affidavit or other documents which are required to be served pursuant to a legal proceeding.PART IV COMMUNICATION OF ELECTRONIC MESSAGE Attribution of electronic message 17. (1) An electronic message is that of the creator if it is sent by the causation himself. (2) As among the occasion and the addressee, an electr onic message is deemed to be that of the causality if it is sent by (a) a person who has the authority to act on behalf of the originator in respect of that electronic message or (b) an information processing system programmed by, or on behalf of, the originator to operate automatically. 3) As between the originator and the addressee, the addressee is entitle to regard an electronic message as being that of the originator, and to act on that presumption, if (a) the addressee properly applies an authentication method agree between the originator and the addressee for ascertaining whether the electronic message was that of the originator or 2 Laws of Malaysia ACT 658 (b) the electronic message as received by the addressee resulted from the actions of a person whose family with the originator or any agent of the originator enabled that person to gain access to an authentication method used by the originator to identify electronic message as its own. 4) Subsection (3) does not apply if (a) the addressee has received a notice from the originator that the electronic message is not that of the originator and has healthy time to act accordingly or (b) the addressee knew or should turn over known that the electronic message was not that of the originator had he god conceivable sympathize with or used any authentication method concur between the originator and the addressee. Contents of electronic message 18.Where an addressee receives an electronic message, the addressee is entitled to regard the electronic message as being what the originator intend to send, and to act on that presumption, unless the addressee knew or should piddle known, had he exercised reasonable care or used any agreed procedure, that the transmission resulted in any error in the electronic message as received. Each electronic message to be regarded separately 19.Where an addressee receives an electronic message, the addressee is entitled to regard each electronic message received as a s eparate electronic message and to act on that presumption, unless the addressee knew or should have known, had he exercised reasonable care or used any agreed procedure, that the electronic message was a duplicate. Time of dispatch 20. Unless otherwise agreed between the originator and the addressee, an electronic message is deemed sent when it enters an information processing system distant the control of the originator.Electronic Commerce Time of receipt 13 21. Unless otherwise agreed between the originator and the addressee, an electronic message is deemed received (a) where the addressee has designated an information processing system for the purpose of receiving electronic messages, when the electronic message enters the designated information processing system or (b) where the addressee has not designated an information processing system for the purpose of receiving electronic messages, when the electronic message comes to the knowledge of the addressee. Place of dispatch 22. Unless otherwise agreed between the originator and the addressee, an electronic message is deemed sent from the originators place of business, and (a) where the originator has more than one place of business, from the place of business that has the closest relationship with the transaction or where there is no place of business that has the closest relationship with the transaction, from the originators booster cable place of business or (b) where the originator does not have a place of business, from the originators ordinary place of residence. Place of receipt 23.Unless otherwise agreed between the originator and the addressee, an electronic message is deemed received at the addressees place of business, and (a) where the addressee has more than one place of business, at the place of business that has the closest relationship with the transaction or where there is no place of business that has the closest relationship with the underlying transaction, at the addressees principal p lace of business or (b) where the addressee does not have a place of business, at the addressees ordinary place of residence. 4 Laws of Malaysia ACT 658 Acknowledgement of receipt 24. (1) This section applies where, on or in advance sending an electronic message, or in the electronic message, the originator has put across or agreed with the addressee that receipt of the electronic message is to be acknowledged. (2) Where the originator has requested or agreed with the addressee that receipt of the electronic message is to be acknowledged, the electronic message is get byed as though it has never been sent until the citation is received. 3) Where the originator has not agreed with the addressee that the identification be given in a particular form or by a particular method, an acknowledgement may be given by (a) any communication by the addressee, automated or otherwise or (b) any conduct of the addressee sufficient to indicate to the originator that the electronic message has b een received. 4) Where the acknowledgement has not been received by the originator inwardly the time specified or agreed or, if no time has been specified or agreed, in spite of appearance a reasonable time, the originator may (a) give notice to the addressee stating that no acknowledgement has been received and specifying a reasonable time by which the acknowledgement must be received and (b) if the acknowledgement is not received within the time specified in paragraph (a), give notice to the addressee to treat the electronic message as though it had never been sent and exercise any other rights he may have. 5) Where the originator receives the addressees acknowledgement of receipt, it is presumed that the addressee received the related electronic message. (6) Where the received acknowledgement states that the related electronic message fulfills technical requirements, either agreed upon or set out in applicable standards, it is presumed that those requirements have been fulfill ed. Electronic Commerce PART V MISCELLANEOUS 15 Regulations 25.The Minister may make such regulations as are necessary or expedient for giving full effect to the provisions of this Act. SCHEDULE (Section 2) This Act shall not apply to the following transactions or documents 1. 2. 3. 4. Power of attorney The creation of wills and codicils The creation of trusts Negotiable instruments DICETAK OLEH PERCETAKAN NASIONAL MALAYSIA BERHAD, KUALA LUMPUR BAGI PIHAK DAN DENGAN PERINTAH KERAJAAN MALAYSIA