Govt To Replace 2006 e-Commerce Act With New Law To Strengthen Accountability

The Malaysian government plans to replace the outdated Electronic Commerce Act 2006 with a new law designed to bolster regulation and accountability for those involved in the e-commerce sector. Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali revealed that the new legislation is necessary due to the current Act's limited focus on establishing the legal validity of electronic transactions, without addressing the responsibilities of market participants.

This announcement came after Prime Minister Anwar Ibrahim's directive on August 20 to expedite the drafting of the e-Commerce Bill, aimed at fostering orderly growth and protection for users and entrepreneurs. The Electronic Commerce Act 2006, also known as Act 658, was enacted to give legal recognition to electronic messages in commercial transactions, including rules on signatures, seals, and document retention.

However, it falls short of creating a comprehensive regulatory framework for the modern e-commerce ecosystem. Armizan stated that the current legislation does not provide the Domestic Trade and Cost of Living Ministry with adequate authority or a clear legal framework to regulate the various aspects of the sector. The ministry is collaborating with the Attorney-General's Chambers, Communications Ministry, Malaysian Communications and Multimedia Commission, and Digital Ministry to draft the provisions for the new bill, which is set to be introduced in the upcoming parliamentary session.