MALAYSIA Law and Practice Contributed by: Janet Toh, Irene Yong, Krystle Lui and Boo Cheng Xuan, Shearn Delamore & Co.
1. Digital Economy 1.1 Key Challenges
that can be offered or conducted within the digi - tal economy. Content is also regulated through the Malaysian Communications and Multimedia Content Code (Third Edition, 2022) (the “Content Code”), issued and administered by the Com - munications and Multimedia Content Forum of Malaysia (the “Content Forum”), and registered as a voluntary industry code under the CMA. This means that, unless otherwise subject to any direction by the Malaysian Communications and Multimedia Commission to comply with it, compliance with the Content Code is voluntary. However, compliance with the Content Code shall be a defence against any prosecution, action or proceeding of any nature. In this con - nection, the Content Code provides guidelines on various types of contents including online contents and advertisements. Other Legislation Other relevant legislation includes the Penal Code, Financial Services Act 2013, the Consum - er Protection Act 1999 (CPA) including the Con - sumer Protection (Electronic Trade Transactions) Regulations 2012 (CPETTR), Strategic Trade Act 2010, Computer Crimes Act 1997, Digital Signa - ture Act 1997, and Copyright Act 1987. Challenges As the internet serves as the backbone for most activities within the digital economy, the inherent reliance on the internet brings about significant challenges, particularly in the realm of cyberse - curity and data protection, where vulnerabilities to hacking, data breaches and cyber-attacks pose risks to businesses and consumers alike. Additionally, the vast amount of data generated, collected and processed raises critical concerns regarding data protection and privacy, especially when data flows across jurisdictions and may end up at a place without adequate legal protec -
In Malaysia, the digital economy is not governed by a single legal framework. Instead, its regula - tion spans various statutes, subsidiary legisla - tion, case laws, guidelines and industry codes relating to matters such as data protection, communications, media, consumer protection, electronic transactions and cybersecurity, some The Electronic Commerce Act 2006 (ECA), which aims to enable and facilitate commercial trans - actions through the use of electronic means, effectively serves as a statutory recognition of contracts formed by electronic means. It pro - vides that a contract shall not be denied legal effect, validity or enforceability on the ground that an electronic message is used in its forma - tion. Communications and Multimedia Act Online communications and contents play a significant role in the digital economy. In this regard, communications are primarily regulated by the Communications and Multimedia Act 1998 (CMA). The CMA provides for, among oth - ers, the regulation of content, and the licensing of providers of network facilities, network ser - vices, applications services and content applica - tions services. Services such as internet access, cloud, social media, messaging (including inter - net messaging) – all of which are intrinsically linked to the digital economy, would fall within the purview of the CMA. of which are discussed below. The Electronic Commerce Act The CMA prohibits certain types of content and communications, such as indecent and offen - sive content and communications, which would limit the types of digital activities and services
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