Tenancy Agreement Malaysia: Digital Tenancy vs e-Tenancy

by | i-Stories, Property Trend, Rental Trend

Times are changing, and technology is evolving. So, it comes as no surprise that the real estate industry is catching up with the times as well. Traditionally, a tenancy agreement in Malaysia is signed by the involved parties (landlord, agent, tenant, etc.) on physical papers and printed copies.

Now, there are contactless and fully digital methods of signing a tenancy agreement. Have you heard of digital tenancy or e-tenancy agreements? Well, you should know that those two terms do not refer to the same thing.

In this article, we compare and contrast a digital tenancy with an e-tenancy agreement.

Are e-Tenancy and Digital Tenancy Agreements in Malaysia Legal?

Since 1997, an electronic signature has been legally recognised in Malaysia with the enactment of the Digital Signature Act 1997 (DSA). According to Section 62(2) of the DSA, a document signed electronically is as legally binding as a document signed with a handwritten signed, thumbprint or any other mark.

Subsequently, the Electronic Commerce Act 2006 (ECA) provided a broader legal recognition to commercial contracts or transactions.

Under the ECA, the information contained in electronic messages (like SMS or email) and the communication of proposals and legally binding agreements signed via any electronic format are admissible in court.

Comparing e-Tenancy and Digital Tenancy Agreement in Malaysia

Comparing e-Tenancy and Digital Tenancy Agreement in Malaysia

For a tenancy agreement in Malaysia to be recognised as a digital tenancy agreement, the customer’s identity must be electronically verified using eKYC (Electronic Know Your Customer).

Next, the signee should possess a digital certificate issued and certified by an independent certificate authority (CA) regulated by the Malaysian Communications And Multimedia Commission (MCMC).

This ensures that the digital signature is embedded with a highly secure and unique ‘fingerprint’ that protects you from fraud. With digital tenancy agreements, all users have to do is accept the contract terms and sign with their secure digital signature.

On the other hand, e-tenancy agreements refer to electronically signing a contract using a mouse, stylus or finger on an electronic device.

Reasons Why Rumah-i Uses Digital Tenancy Agreement in Malaysia

  • Highly secure
    • When it comes to tenancy agreements in Malaysia, we understand the significance of security. Both tenants and landlords can rest assured that our tenancy agreements are protected against signature fraud.
    • How do we ensure that? Our certified digital signatures use a universally accepted public key infrastructure (PKI) format.
    • The PKI serves as an encryption and cybersecurity framework that protects and encrypts data and issues a digital certificate to authenticate a user’s identity.
  • Simple and convenient
    • Another pro to digital tenancy agreements is the more accessible and convenient contract signing. There is no need to meet in person as you can do everything through digital and contactless signing.
    • With easier document processing, both landlords, property managers and tenants can save time during the rental process. Once the agreement is complete, all parties can easily locate the contract as stamped digital tenancies will be stored in your account in Rumah-i.
  • Environmentally friendly
    • When we go digital, we go green as well. From lesser paperwork to producing less waste paper, we can reduce paper consumption in the office.
    • Moreover, shifting to digital tenancy agreements is also cost-effective. In the long run, we achieve more cost-savings from having to purchase less paper, ink, printers and more.

Rumah-i’s Process for Digital Tenancy Agreements in Malaysia

Rumah-i’s Process for Digital Tenancy Agreements in Malaysia

1. eKYC Authentication Step

At Rumah-i, we ensure high levels of security and verification with facial and ID card authentication. Users would have to use their phone camera to scan their physical ID cards.

Next, the front camera is launched for users to take a selfie or nod to verify that they are a real person. Then, our app will compare and authenticate the user’s live face against their ID photo. Lastly, an OTP verification is required to complete this step.

2. Digital Signature Registration

Once your account is verified, you can register for a digital signature on our platform.

3. Digital Tenancy Signing

Now, users can sign the necessary documents and agreements using digital signatures and view or download the contract from their account. 

Ready to make leasing out your property easier? Landlords and property managers can list their properties for free with Rumah-i’s Home Renting App on Google Play or the App Store.


- Entitle ONE time rental collection service for free

- Rental collection service for free is limited to FIRST 1,000 properties which engage the service and is for pre-launch registered owners only.

- Tenancy agreement must be prepared by Rumah-i.