The Future Of E-Commerse in Malaysia

E-commerce has evolved over the years from electronic funds transfers (EFT), comprising of online shopping and Internet banking, to electronic data interchange (EDI),  comprising companies' transfer of documents such as purchase orders or invoices. Recent studies foresee a massive growth of e-commerce in the Asian region especially in Malaysia, Singapore, Hong Kong, Korea and Australia; possibly challenging Europe and United States. 

E-commerce has its numerous advantages.  For instance, it overcomes geographical limitations to allow market expansion; decreases administrative, marketing and logistics costs; increases efficiency and provides a competitive environment to improve quality of service. However, there are some concerns that need to be addressed, particularly, privacy issues, legal issues such as copyright infringement, protection of patent rights, domain name disputes and preservation of trade secrets as well as issues pertaining to the validity and enforcement of agreements made online.

Governments and regulatory bodies throughout Asia have recognized the prospects of e-commerce and policies have been designed to amend the existing laws to deal with the emerging legal issues post by e-commerce transactions. To attract new online business opportunities and increase the competency of e-commerce in the Asian region, it is important for international businessmen and their legal advisors to be familiar with the e-commerce laws, policies and regulations throughout Asia.

To date, some of the legislations that have been conceded in Asia include: Australia"s Electronic Transactions Act 1999; Broadcasting Services Amendment (On-Line Services) Act 1999; Privacy (Private Sector) Bill and the Copyright Amendment (Digital Agenda) Bill 1999; South Korea's Electronic Transaction Basic Act; Singapore's Electronic Transaction Act 1998; Hong Kong Electronic Transactions Ordinance 2000; Japan's Draft Bill Concerning Electronic Signatures and Certification Authorities and the Law Partially Amending the Trade Mark Law; the Philippines' Electronic Commerce Act; and India's Information Technology Act 2000.

Malaysia was one of the pioneers amongst Asian countries to establish a new federal ministry, Ministry of Energy, Communications and Multimedia. The main function of this Ministry is to spearhead and promote the growth of information and communication technology (ICT) with the support of several agencies, including the Malaysian Institute of Microelectronic Systems (MIMOS) established in 1984, Multimedia Development Corporation (MDC) established in 1996, and Malaysian Communications and Multimedia Commission (or MCMC) established in 1998.

These agencies contribute to e-commerce by developing their own agenda.  For instance, the Multimedia Development Corporation has been working on a National Electronic Commerce Masterplan designed to facilitate the growth of e-commerce in Malaysia. The four key elements in this Masterplan are to boost confidence in on-line trading, prepare a regulatory framework, build a critical mass of Internet users and introduce an electronic payment system.

Amongst the legislations that have been passed in Malaysia are Malaysian Communications and Multimedia Commission Act 1998; Communications and Multimedia Act 1998; Digital Signature Act 1997; Computer Crimes Act 1997; and Telemedicine Act 1997. These legislations have been amended over the years in attempts to better address emerging e-commerce issues.

In lieu with the importance of e-commerce, the Malaysian Government has allocated RM 12.9 billion for the Ninth Malaysia Plan (2006-2010). On a broader perspective, Malaysia is participating in Asia Pacific Economic Cooperation's (APEC) to contribute in the efforts of introducing e-commerce laws, policies and regulations to facilitate e-commerce transactions internationally.

The future of e-commerce in Malaysia and the Asia region is bright. Governments and regulatory bodies are collaborating on a wider platform to ensure e-commerce law, policy and regulations are enforced to provide a guideline for traders to systematically utilize e-commerce and in tandem ensure protection for e-commerce users.

ECA 2006 - Legal Perspective on Online Shopping

The Electronic Commerse Act (ECA) 2006 (Act 658) provides for legal recognition of electronic messages in commercial transactions, the use of the electronic messages to fulfil legal requirements and to enable and facilitate commercial transactions through the use of electronic means and other related matters. The Act applies to any commercial transaction conducted through electronic means including commercial transactions by the Federal and State Governments. Nevertheless, the use of such means is not made mandatory. From the outlook of this Act, one can see that it is modelled to a great extent on the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerse (Model Law)1996. Certain legal principles adopted including the principles of functional equivalence and technology neutrality.

With the passing of ECA 2006, e-commerce in Malaysia is not what or how it was before the existence of this statute. One fundamental task is fulfilled, namely, providing legal certainty as to the validity and legality of electronic transactions. IT users and the owners of information assets ought to get some assurance that their activities are lawful, their communications and transactions valid and their transactions are protected.

Information Security Standards under ECA 2006

It is note-worthy that ECA 2006 sets up certain information security standards to be applied on the e-commerce activities, among others, on legal recognition of electronic message, writing, and originality of document. The effect of this is indirectly making an information security best practice as an incentive for the legality of e-commerce itself.

Many legal concepts are being tied with the requirement of accessibility of the information or the information system. For example, for the purpose of granting legal recognition of an electronic message, section 6(2) of the Act expressly provides that:

‘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 right to such legal effect, but is merely referred to in that electronic message, provided that the information being referred to is accessible to the person against whom the referred information might be used’ [emphasis added].

As a practical illustration, people who are parties to an e-transaction such as online auction are bound by the terms of contract stipulated in an electronic format such as those on the auction provider’s website, as long as that information (i.e. the online terms) are accessible and available for subsequent reference. This requirement of ‘accessibility’, it is submitted, indicates that the purported user of electronic message must make sure that there is in place and under his control a system from which an electronic message at issue can be accessed and provided. This is exactly what the principle of information availability is all about. Therefore in order to achieve the protection under these provisions, efforts must be made to ensure the information system is neither intruded nor compromised so that access not denied whenever it is required.

Similar information availability principle can be found in the provision on the originality of a document, albeit that it also imposes other measures on information integrity and confidentiality. Section 12(1) of ECA 2006 provides that:

‘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 integrity of the information contained in the electronic message from the time it is first generated in its final form [emphasis added]; and

(b)    The electronic message is accessible and intelligible so as to be usable for subsequent reference [emphasis added].

Section 12(2) went on saying that the integrity of the information depends very much on whether the information has remained complete and unaltered; and the standard of reliability shall be assessed in the light of the purpose for which the document was generated and in the light of all other relevant circumstances.

Reading the whole provisions would enable us to suggest that the standard of information security required for ascertaining the originality of an electronic message will vary according to the context of every given communications and can also depend on the nature of harm and threats to any electronic message in any given information system. Thus, the more sensitive communication and information system is, the higher level of measures will be required to achieve a reliable assurance of an information integrity. This particular provision is arguably very central to the idea of setting information security standard for the e-commerce to work effectively.

To conclude, it is noted that ECA 2006 has paid a serious attention to information availability being a central prerequisite for e-commerce players in Malaysia. While the Act may not be a comprehensive ‘masterpiece’, it could arguably play vital role for the information security legal framework in Malaysia.

E-Commerse

 In traditional commerce, it is not easy to start a business. You must apply strategies that follow the rules and regulations imposed by the government. Electronic commerce can make almost any type of business in a very simple. What makes it easier? The reason is that the legal frameworks and enforcement mechanisms are not strong. 

Electronic commerce has been the occasion for the world to see the companies to global markets and shopping without leaving your home or office. Electronic commerce can provide opportunities to improve business processes, such as telephones, faxes and mobile communications in the past. However, like any new business tool for related matters and so does the risk of electronic commerce. It is important to understand the legal issues and potential risks to ensure a safe environment for trade with customers and other businesses. 

E-commerce site development, advertising, electronic transactions, cash transactions and thus involve many legal issues to take into account step by step. Before developing an e-commerce website and a domain registered trademark must be determined. There must be some protection of copyright on the site. Companies must ensure that it shows the terms and conditions and policies within its site. Security in the privacy of your data is always a major concern when a business online. Of rules and regulations for billboards in the placement of other known sites, second. It is very valuable when it comes to such complex issues to consult a lawyer specializing in issues in cyberspace. 

Most of the legal issues surrounding electronic commerce are not new. Lawyers should, however, be able to recognize the growing importance of legal issues in the online environment. In understanding the technical, contractual property, intellectual and regulatory issues that are more important in the new economy, the lawyer is well positioned to help customers proactively to minimize their exposure to legal liabilities . 
Before allocating resources for the initiative is whether the law allows a business process or an electronic transaction. For example, electronic communications and transactions (ECT) act to facilitate the conclusion of the majority of electronic transactions and communications, investing in such operations on an equal footing with traditional transactions or communications. 

The popular perception of the Internet as an unregulated media is not true. The laws of the world powers continue to apply when you surf the net the only difference is how they can apply. The colonization of cyberspace is both the technology and the possible. Indeed, technology is both a threat and a solution because it was on one side challenges the laws and regulations, infrastructure, yet it offers the solution to many of these threats, including security integrity and authenticity. The trend of online shopping is only to grow and become a larger part of our daily lives, so it’s important for consumers of e-wise to the potential threat of online shopping to make their experience more rewarding.

Online Shopping : Legal Issues??

You must apply strategies that follow the rules and regulations imposed by the government. Electronic commerce can make almost any type of business in a very simple. What makes it easier? The reason is that the legal frameworks and enforcement mechanisms are not strong.

Electronic commerce has been the occasion for the world to see the companies to global markets and shopping without leaving your home or office. Electronic commerce can provide opportunities to improve business processes, such as telephones, faxes and mobile communications in the past. However, like any new business tool for related matters and so does the risk of electronic commerce. It is important to understand the legal issues and potential risks to ensure a safe environment for trade with customers and other businesses.

E-commerce site development, advertising, electronic transactions, cash transactions and thus involve many legal issues to take into account step by step. Before developing an e-commerce website and a domain registered trademark must be determined. There must be some protection of copyright on the site. Companies must ensure that it shows the terms and conditions and policies within its site. Security in the privacy of your data is always a major concern when a business online. Of rules and regulations for billboards in the placement of other known sites, second. It is very valuable when it comes to such complex issues to consult a lawyer specializing in issues in cyberspace.

Most of the legal issues surrounding electronic commerse are not new. Lawyers should, however, be able to recognize the growing importance of legal issues in the online environment. In understanding the technical, contractual property, intellectual and regulatory issues that are more important in the new economy, the lawyer is well positioned to help customers proactively to minimize their exposure to legal liabilities .
Before allocating resources for the initiative is whether the law allows a business process or an electronic transaction. For example, electronic communications and transactions (ECT) act to facilitate the conclusion of the majority of electronic transactions and communications, investing in such operations on an equal footing with traditional transactions or communications.

The popular perception of the Internet as an unregulated media is not true. The laws of the world powers continue to apply when you surf the net the only difference is how they can apply. The colonization of cyberspace is both the technology and the possible. Indeed, technology is both a threat and a solution because it was on one side challenges thel aws and regulations, infrastructure, yet it offers the solution to many of these threats, including security integrity and authenticity. The trend of online shopping is only to grow and become a larger part of our daily lives, so it's important for consumers of e-wise to the potential threat of online shopping to make their experience more rewarding.