The execution of documents by way of an electronic signature (or e-signature) is recognized under the Electronic Commerce Act 2006 (ECA). An "electronic signature" 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 signature. Subject to the fulfillment of the conditions specified in the ECA, the electronic signature will be legally enforceable.
However, the ECA does not apply to certain documents, including:
- Power of attorney (which would be contained in most of the security documents).
- Documents for creation of trusts.
While electronically signed documents are legally enforceable under the ECA, other practical issues need to be considered, such as issues in respect of the stamping of such documents (which would affect the admissibility of the documents as evidence in court) and the authenticity of the electronic signature.
There is no legal provision that expressly recognizes the use of a live video call to witness the execution of documents. In July 2022, the Malaysian Bar Council has approved and adopted a new ruling setting out the conditions for virtual or remote witnessing of execution of a document by solicitors, provided that physical presence is not required or prescribed under any written law.