 What is Digital Signature?

 Digital Signature Act 1997 (DSA): Signature generated using an asymmetric

cryptosystem that is verified by reference to the public key listed in a valid certificate
issued by a licensed certification authority (LCA).
 Created based on a set of algorithm and a unique authentication process (tamper
proof)
 It provides legal recognition to a documents signed
 Can determine the identity of the signer and verify the authenticity of documents.
Hence, it is more secure
 Only LCA duly approved by Malaysian Communications and Multimedia Commission
(MCMC) can act as a trusted party administering the use of digital signature
 LCAs listed under MCMC:
 Post Digicert Sdn Bhd
 MSM Trustgate.Com Sdn Bhd
 Telekom Applied Business Sdn Bhd
 Raffcomm technologies Sdn Bhd
 How to use Digital Signature?1
 In order to make the digital signature to be valid, it has to be certified and
validated by licensed. Which means, by those 4 trusted party listed under
MCMC
 S62 of DSA: digital signature is to be verified
 S 45 of DSA: DSA impose additional security measures (fiduciary
responsibility) to safeguard the subscriber’s private key information

 Conclusion:
Digital Signature is a secure signature as it need approval by MCMC.

Question to ponder:
Is it similar to digital signature the same with E-Signature?2
 E-signature:
 Electric Commerce Act 2006 (ECA): 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
 Requirement to have binding e-signature:
 Attached or logically associated with electronic message
 Adequately identifies the person and indicates the person’s approval of the
information to which the signature relates; and
 Reliable as is appropriate given the purpose for which the signature is
required.
 E-signature is considered to be reliable when
 The means of creating the E-signature is linked to and under the control of
that person only; and
 Any alteration made to the e-signature or the document after the times of
signing is detectable.
 When E-signature can be accepted?
 Commercial agreements between corporate entities which does not require
the affixation of the company seal, including services agreements,
procurement documents and sales agreements
1
https://tcclaw.com.my/electronic-digital-signatures-in-malaysia/#:~:text=For%20a%20digital%20signature
%20to,Sdn%20Bhd%20(457608%2DK)%3B
2
https://rajadarrylloh.com/electronic-signatures-a-viable-alternative-to-physical-signatures/
  Consumer agreements, including insurance policies, and e-commerce
platforms terms and conditions
 Employment contacts
 Limitation of e-signature?
 Power of attorney
 Creation of wills and codicils
 Creation of trusts
 Negotiable instruments. Eg: cheques or promissory notes
 Other issue:
 If there is a legal requirement to affix seal to a document, ECA provides that
such requirement can only be fulfilled by using a digital signature
 But, in Sect 66(3) CA 2016, a documents signed by at least 2 authorized
officers of a company has the same effect as if the document is executed
under the common seal of the company.
 NLC- any forms relating to land transactions to be handwritten and where an
execution involves a company, shall be affected by affixing seal of the
company
 Electronic Government Activities Act 2007(EGAA) provides legal recognition
of electronic messages in dealings between the Government and public
sector. The requirement of E-signature is the same as ECA
 Prescription of Electronic Signature Order 2010: The use of a pin number as
an electronic signature fulfills the requirement of affixing a seal in an
electronic message.

 Conclusion: A digital signature is an e-signature but not vice versa

Hence, Digital Signature is more secure than E-Signature as it need to be approved by MCMC.