Electronic Commerce in Malaysia

LAWS OF MALAYSIA set 658 electronic COMMERCE lay out 2006 2 Laws of Malaysia ACT 658 Date of Royal As direct Date of yield in the Gazette 30 swaggering 2006 31 August 2006 Publishers Copyright C PERCETAKAN NASIONAL MALAYSIA BERHAD All rights reserved. No part of this publication may be reproduced, stored in a retrieval ashes or transmitted in each tenor or by each subject matter electronic, mechanical, photocopying, recording and/or other(a) than without the prior allowance of Percetakan Nasional Malaysia Berhad (Appointed Printer to the Government of Malaysia).Electronic Commerce LAWS OF MALAYSIA put to work 658 ELECTRONIC COMMERCE ACT 2006 3 ARRANGEMENT OF SECTIONS decompose I precedent Section 1. 2. 3. 4. 5. Short title and commencement Application Use not requisite Reference to other written fairnesss Interpretation PART II LEGAL learning OF ELECTRONIC put across 6. 7. Legal recognition of electronic communicate Formation and validity of pick out PART d euce-ace issue OF LEGAL REQUIREMENTS BY ELECTRONIC MEANS 8. 9. 10. 11. 12. 13.Writing Signature Seal Witness Original Retention of inventory 4 Section Laws of Malaysia 14. 15. 16. Copy Prescribed form return and delivery PART IV communicating OF ELECTRONIC MESSAGE ACT 658 17. 18. 19. 20. 21. 22. 23. 24. Attribution of electronic meat Contents of electronic sum for each one electronic contentedness to be regarded separately Time of project Time of receipt Place of dispatch Place of receipt Acknowledgement of receipt PART V MISCELLANEOUS 25. Regulations SCHEDULEElectronic Commerce LAWS OF MALAYSIA piece 658 ELECTRONIC COMMERCE ACT 2006 5 An Act to provide for efficacious recognition of electronic meats in mercenary works, the put on of the electronic essences to fulfill legal emergencys and to enable and facilitate commercial transactions through the use of electronic nitty-gritty and other matters connected therewith. ENACTED by the Parliament of Malaysia as follow s 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 determine to be appointed by the Minister by notification in the Gazette. Application 2. (1) Subject to section 3, this Act shall apply to every commercial transaction conducted through electronic means including commercial transactions by the Federal and State Governments. (2) This Act shall not apply to the transactions or put downs specified in the Schedule. 6 Laws of Malaysia ACT 658 (3) The Minister may by order amend, vary, delete from or add to the Schedule. Use not mandatory 3. 1) Nothing in this Act shall make it mandatory for a somebody to use, provide or accept whatsoever electronic meat in either commercial transaction unless the somebody consents to the using, providing or accepting of the electronic core. (2) A souls consent to use, provide or accept any electronic message in any commercial transaction may be inferred from the persons conduct. Reference to other written laws 4. The drill of this Act shall be supplemental and without prejudice to any other laws regulating commercial transactions. Interpretation 5.In this Act, unless the scene other requires electronic means the technology of utilizing electrical, optical, magnetic, electromagnetic, biometric, photonic or other similar technology Minister means the Minister charged with the responsibility for domestic trade and consumer affairs electronic message means an discipline generated, sent, stock or stored by electronic means cause 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 brainiac to receive the electronic message Electronic Commerce schooling processing system means an electronic system for generating, send, receiving, storing or processing the electronic message electronic key signature means any letter, character, number, sound o r any other symbol or any combination thence created in an electronic form adopted by a person as a signature commercial transactions means a single communication or multiple communications 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 cultivation shall not be denied legal consummation, validity or enforceability on the ground that it is wholly or partly in an electronic form. (2) Any reading 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 that the information being referred to is affable to the person against whom the referred information might be use d.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 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 III 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 accessible and intelligible so as to be usable for subsequent reference. Signature 9. 1) Where any law requires a signature of a person 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 which (a) is attached to or is logically associated with the electronic m essage (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 given the purpose for which, and the circumstances in which, the signature is required. 2) For the purposes of paragraph (1)(c), an electronic signature is as reliable as is appropriate if (a) the means of creating the electronic signature is linked to and under the control of that person only (b) any alteration made to the electronic signature after the cadence of signing is incurable and (c) any alteration made to that document after the era 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 cast 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 branch (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 profess 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 legitimate 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 integrity 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 reference. 2) Fo r the purposes of paragraph (1)(a) (a) the criteria for assessing the integrity of the information shall be whether the information has remained muster out and unaltered, apart from the addition of any endorsement or any change which arises in the normal personal line of credit of communication, storage and display and (b) the standard of reliability required shall be assessed in the light of the purpose for which the document was generated and in the light of all other relevant circumstances. 10 Laws of Malaysia ACT 658 Retention of document 13.Where any law requires any document to be retained, 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 trustworthy, 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 delivery 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 delivery 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 commit (a) to identify the origin, destination, time and date of service, sending or delivery and (b) for the quotation of receipt, of the document. (2) This section does not apply to (a) any brand 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 originator if it is sent by the originator himself. (2) As amidst the originator and the addressee, an electronic message is deemed to be that of the originator 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 agreed 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 kindred 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 h as reasonable time to act accordingly or (b) the addressee knew or should have cognise that the electronic message was not that of the originator had he exercised reasonable treat or used any authentication method agreed 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 intended to send, 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 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 separate electronic message and to act on that presumption, unless the addressee knew or should have known, had he exercised reasonable c are 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 outback(a) 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 dimensio n of lineage, 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 principal 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 place 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 before sending an electronic message, or in the electronic message, the originator has requested 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 handle as though it has never been sent until the quotation is received. 3) Where the originator has not agreed with the addressee that the acknowledgement 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 been received. 4) Where the acknowledgement has not been received by the originator within the time specified or agreed or, if no time has bee n specified or agreed, within 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 forth in applicable standards, it is presumed that those requirements have been fulfilled. Electronic Commerce PART V MISCELLANEOUS 15 Regulations 25.The Minister may make such regulations as are necessary or expedient for giving full effect to th e provisions of this Act. SCHEDULE (Section 2) This Act shall not apply to the following transactions or documents 1. 2. 3. 4. Power of lawyer 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