By: Sonny Zulhuda
Malaysia regards electronic commerce as a powerful driver for the national development and economic growth. This belief has be reinforced by the setting up of national policies and laws seeking to ensure that processes, tools and technologies are put in place to facilitate the electronic commerce. Among those laws is the Payment Systems Act (‘PSA’) 2003 (Act 627) which came into force on 1st November 2003). It is a principal legislation which provides for the framework for the regulation and supervision of the payment systems and payment instrument in Malaysia.
When anticipating the birth of this law, the Central Bank Governor emphasized that the study on the legal and regulatory framework was undertaken to enhance the efficiency of payment system and to specifically provide the mandate to the Central Bank of Malaysia to effectively oversee and facilitate greater development of such system in the country.