The Implementation and Reliability of Digital Signatures in Malaysian Conveyancing Practice

Author: By Nur Amirah
Date : 09 February 2026

The use of digital signatures is growing in conveyancing practice following the implementation of the e-SPA (Electronic Sale and Purchase Agreement) module on the Housing Integrated
Management System (HIMS) platform. This is introduced by the National Housing Department (Jabatan Perumahan Negara, “JPN”) of the Ministry of Housing and Local Government (Kementerian Perumahan dan Kerajaan Tempatan, “KPKT”), which replaces the old system in regulating all agreements following the Schedules under the Housing Development (Control and
Licensing) Regulations 1989. Based on the Bar Council Circular No 036/2022, KPKT described HIMS as a “one-stop platform to regulate, manage, engage, receive, and gather data”. As
reported by The Sun Malaysia, the Minister of Housing and Local Government, Nga Kor Ming, stated that one of the aims of the housing reforms is to support a world-class digital housing
ecosystem that also strengthens buyer protection, improves the efficiency of the housing system, and closes regulatory gaps.

The five housing reforms under the Madani Housing Reforms will be implemented starting January 2026, according to Minister of Housing and Local Government, Nga Kor Ming. These
reforms require all sale and purchase agreements for the housing projects to be generated through the HIMS website and to use digital signatures. Thus, starting this year, housebuyers will
be able to sign their SPA online, following the digital signing introduced into conveyancing practice.

In Malaysia, the laws governing electronic signatures are the Electronic Commerce Act 2006 (ECA), the Digital Signature Act 1997 (DSA), and the Electronic Government Activities Act 2007
(EGAA). Even though the terms electronic signature and digital signature are often used interchangeably, they are distinct, each governed by a different Act. Malaysia formally recognised
the legal validity of digital signatures through the Digital Signature Act 1997 (DSA 1997). According to this Act, a digital signature is defined as a transformation of a message utilizing an
asymmetric cryptosystem. This technology allows a recipient to verify two important things using both the original message and the signer’s public key. First, to check if the signer used the correct private key for the transformation. Second, to confirm whether there has been any alteration since the transformation. In other words, a digital signature is a secure electronic signature that verifies the signer’s identity and safeguards the document from modifications. Referring to Dominic (2020), within the realm of “legal tech,” a digital signature is a specific form of electronic signature uniquely linked to an electronic record via an advanced encryption process, ensuring authenticity and data integrity.

In the new conveyancing process, prior to the digital signing for eSPA via the HIMS website, every homebuyer must register on the iDsaya app to generate a Digital Certificate PIN to proceed. The
Electronic Know Your Customer (eKYC) process through the iDsaya app verifies the applicant’s identity before issuing the digital certificate. This method ensures that certificates are issued to
legitimate individuals by using biometric authentication and facial recognition to securely identify both the user and their documents.

In contrast, an e-signature or electronic signature is defined under the Electronic Commerce Act (ECA) 2006, 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. Unlike digital signatures, e-signatures do not involve any cryptographic process. A digital signature is a more secure option than an electronic signature, as it uses encryption to provide a cryptographic process that is difficult to alter or tamper with (Tyson, 2025). Although both digital and electronic signatures are recognized by law in Malaysia, the KPKT has made significant progress in implementing digital signatures in conveyancing practices. Additionally, a digital signature is legally binding in the
same manner as a handwritten signature, thumbprint, or any other mark, under Section 62(2) of the DSA 1997.

As digital signing and eSPA are implemented, they are also changing lawyers’ traditional workflows in the conveyancing process. Lawyers are responsible for informing the client of the
whole procedure and explaining how the digital signature works and its legal effect. They must be ready to assist the client with the digital signing and to manage unexpected circumstances, such
as delays on the part of the Purchaser or Developer in completing the digital signing of the eSPA, as well as any possible system downtime that could disrupt the process. This responsibility would
be even more significant when assisting middle-aged or older homebuyers, who might not be digitally literate and need closer guidance. The challenges show that although digital signatures
can help make a big shift in the direction of digitalizing housing agreements, the procedure is not always straightforward and needs close supervision.

Besides, even though digital signatures are adopted for eSPA, they are not applied to the Banks’ loan documentation and land instruments at the Land Offices. The procedure for the said process
remains offline, meaning it still requires handwritten signatures, and the digital signature has not been implemented, despite being legally recognised. This also reflects that the adoption of digital signatures remains uneven throughout the conveyancing process.

The use of digital signatures in the conveyancing practice for eSPA demonstrates that Malaysia is progressing towards the digitalisation of the conveyancing ecosystem to ensure an efficient and
reliable housing conveyancing system. The law enacted for the legal recognition of digital signatures under the Digital Signature Act 1997 also supports the government’s reform aims.
Nonetheless, it is crucial to assess the practical acceptance of digital signatures at all stages. Therefore, even though the use of digital signatures in conveyancing represents a significant
improvement, to ensure the broad adoption and efficiency throughout the process, ongoing regulatory changes are necessary.

 

References
Digital Signatures Act 1997
Electronic Commerce Act (ECA) 2006

Pearson, D. (2020). Sign me up, log me in, let me begin: The rise of digital signatures.
https://www.wfw.com/wp-content/uploads/2020/04/WFW-Article_-The-rise-of-digitalsignatures4.pdf

The Sun. (2025). Malaysia to implement five MADANI housing reforms from 2026. The Sun Malaysia. https://thesun.my/news/malaysia-news/malaysia-madani-housing-reforms-2026/

Tyson, S. (2025). Digital signature vs electronic signature: what’s the difference? Juro.com.
https://juro.com/learn/digital-signature-vs-electronic-signature#