The Electronic Transactions Act 2010

Explore the Electronic Transactions Act (ETA) and its associated IMDA regulations, which provide a robust legal framework for electronic transactions in Singapore.

About the Electronic Transactions Act (ETA)

The Electronic Transactions Act (ETA) was first enacted in July 1998 to provide a legal foundation for electronic transactions, and to give predictability and certainty to contracts formed electronically. It does not mandate the use of electronic signatures or transactions and facilitates their use where parties choose to transact electronically. In March 2021, the ETA was amended to ensure that Singapore’s legal and regulatory infrastructure keeps pace with international trade law and the latest technological developments so that Singapore remains globally competitive.

Recognising the growing importance of electronic transactions, especially e-commerce, Singapore was the first country to adopt the Model Law on Electronic Commerce of 1996 (MLEC) by the United Nations Commission on International Trade Law, or UNCITRAL. In 2010, the ETA was repealed and re-enacted to adopt the United Nations Convention on the Use of Electronic Communications in International Contracts (ECC).

2021 Amendment

In 2021, the ETA was amended to adopt the UNCITRAL Model Law on Electronic Transferable Records (MLETR), which enables the creation and use of transferable documents or instruments such as electronic bills of lading (eBLs), which are key documents for international trade, including digital payment processes. Please see the infographic (171.64KB) for more information about the 2021 ETA amendments. The adoption of eBLs will result in faster processing, lowered fraud risks, cost savings, and will enable innovative business models. The Electronic Transactions (Amendment) Bill was introduced in Parliament on 4 January 2021, and passed on 1 February 2021. The amended Act came into force on 19 March 2021.

Benefits

The ETA addresses the following issues:

Commercial code for e-commerce transactions: The ETA supports the use of electronic signatures and almost all agreements used in typical business functions can be signed electronically, including sales, procurement & sourcing, human resources, and finance and accounts. In these instances, there is no real distinction made under the ETA between “wet-ink” signatures and electronic signatures.

What is an Electronic Signature?

An electronic signature, like a wet-ink signature, is a record of a person’s intention or consent, and can include:

• Pasting a digitised image of their manuscript signature
• Signing using a stylus or finger on a touch screen
• Ticking a check box or clicking ‘I accept’ on an online form
• Selecting an option in an electronic signature software

How to adopt e-signatures?

With the wide acceptance of e-signatures and policies in place to support it, businesses in Singapore are encouraged to digitalise by adopting e-signatures.

Examples of commercial electronic signature solutions# include:

• Adobe Sign
• DocuSign
• GlobalSign
• MiSign
• Netrust

# The listing of companies should not be taken as a form of endorsement or recommendation by IMDA. Businesses should obtain their own professional and/or independent legal advice and conduct all necessary due diligence in respect of any decisions or actions they intend to take.

The information above is published as general guidance and should not be construed as legal advice.

Legislation

The Evidence Act (Cap 97) was also amended in 1997 to allow the use of electronic records as evidence in the courts.