KUALA LUMPUR July 23 - A government backbencher proposed in the Dewan Rakyat here today that the government introduce legislation on online transactions to boost public confidence.

Datuk Ruhanie Ahmad (BN-Parit Sulong) said that Malaysia, faced with the onslaught of electronic commerce (e-commerce) in line with the government's aspiration to become a leader in information and communications technology (ICT) in the region, should have legislation on this matter.

"We should think seriously about this matter including in terms of electronic banking (e-banking). The most important thing is customer security in the legal aspects, or else it (ICT) will not catch on in this country," he said during the debate of the Digital Signature (Amendment) Bill 2001.

He said that services provided like deposit of cash and transactions through online banking were attractive.

"For instance, now we are able to conduct transactions with those in the Cayman Islands but we do not have confidence in these services because we do not have legal protection on such transactions," he said.

He said that even though there were currently no standard international laws, at least laws to be formulated could cover domestic transactions.

Ruhanie said that even though on the technical aspects the online system was secure with the availibility of a firewall, on the legal aspects protection was lacking.

He cited Singapore, Thailand, Australia, Canada and Europe where the Electronic Transactions Act covers all online transactions.

The MP said that the legislation should also cover data protection and confidentiality especially when Malaysia had already introduced multi-purpose identity cards.

He said that legal draughtsmen should ensure that they keep abreast of the economic progress of the country.

"If lacking in understanding, the attorney-general can engage experts on information technology specialising in cyberlaw for assistance," he said.

Ruhanie also proposed that legislation be introduced for those wishing to set up web sites by imposing certain conditions to prevent abuse over the internet.

Wan Junaidi Tuanku Jaafar (BN-Batang Lupar), speaking during the debate, said that the development of e-commerce, a flagship application of the Multimedia Super Corridor (MSC), would not get much response if local and foreign businessmen were suspicious and doubtful of the security of their investments.

"Businessmen will have doubts if legal protection and guarantee on their investments are not ensured by the government through an appropriate legal arrangement," he said.

Wan Junaidi also said that the government should upgrade and ensure infrastructure like electricity supply and telecommunication lines in the rural areas to bridge the digital gap.

He said that opportunities would be wide open for the rural residents to improve their standard of living in the economic, social and educational aspects.

Wan Nik Wan Yusoff (Pas-Bachok), in his speech, said that many complaints had been received from consumers who were billed ridiculous amounts.

He said that this meant the absence of a security code for consumers or codes which were not foolproof.

As such, he said, the Digital Signature Act should be streamlined in terms of supervision and enforcement.

In winding up the debate, Parliamentary Secretary to the Energy, Communications and Multimedia Ministry Chia Kwang Chye said that the Bill, when approved, would provide for greater use of electronic documents including exhibits tendered in court.

He said that the validity of digital signatures cannot be doubted when used as evidence in court.

Digital signatures, he said, could also be used in internet banking and insurance matters.

Chia also said that to date, a total of 70,942 digital signature certificates had been issued by two appointed certification bodies, Digicert and MSC Trustgate.

He said that to ensure the effective enforcement of the Digital Signatures Act, police officers at least with the rank of inspector empowered to act would be provided with adequate training.

"I'm sure these police officers will be given training and briefings to improve their skills prior to enforcement being conducted," he said.

The Bill was later passed.