The Use of Electronic Signatures in Singapore

Due to the disruption arising from the spread of COVID-19, there is a global shift towards technological advancements and transformation. The use of electronic signatures instead of traditional “wet ink” signatures has become more common.

This article will explore the various methods of electronic signing and the significant effects of the Electronic Transactions (Amendment) Act that came into force on 19 March 2021.

In Singapore, the Electronic Transactions Act (Chapter 88) (“ETA”) is the primary legislation which provides legal certainty for digital transactions and governs the use of electronic signatures and electronic records. An electronic signature may be accorded the same legal status as a “wet ink” signature where the requirements stipulated in the ETA are met.

I. Electronic signatures

While the ETA does not define the term “electronic signature”, it is generally understood as essentially an acknowledgement provided in an electronic format that a business can use to demonstrate the intention of a party (e.g., acceptance) and that can electronically be used to authenticate the party involved. 

For an electronic signature to be valid and satisfy a rule of law that requires a signature, it must meet the following conditions:

1. The method used must be able to identify the person and indicate that person’s intention in respect of the information contained in the electronic record.
2. The method used must be:

1. as reliable as appropriate for the purpose for which the electronic record was generated or communicated, in the light of all the circumstances, including any relevant agreement; or
2. proven in fact to have fulfilled the functions described in paragraph (a), by itself or together with further evidence. 

I. Secure electronic signatures

For a secure electronic signature (through the application of a specified security procedure, or a commercially reasonable security procedure) to be valid, it must be possible to verify that, at the time it was made, it was: 

1. unique to the person using it;
2. capable of identifying such person;
3. created in a manner or using a means under the sole control of the person using it; and
4. linked to the electronic record to which it relates in a manner such that if the record was changed the electronic signature would be invalidated. 

The Government Technology Agency’s (GovTech) wholly owned subsidiary, Assurity Trusted Solutions Pte Ltd (ATS), launched the “Sign with SingPass” digital signing service on 5 November 2020, in collaboration with eight leading digital signing application providers, i.e.  DocuSign, iText, Netrust, Adobe, OneSpan, Dedoco, Tessaract.io and Kofax. This service allows SingPass users to electronically sign contracts, agreements and other legal documentation.

The digital signature is identifiable and cryptographically linked to the signer, and is automatically validated at the point of signing. Digital signatures made with “Sign with SingPass” use certificates issued by ATS, the National Certification Authority and will be regarded as secure electronic signatures under the ETA.

The “Sign with SingPass” is presently available for specific documents and with certain government agencies (such as the Singapore Land Authority) and private sector businesses. Other businesses in the private sector may still register their interest to use the “Sign with SingPass” service. On 10 June 2021, it was announced in a press statement that UOB is piloting the use of the “Sign with SignPass” in its customer transactions, with plans to roll out electronic signature services for customers across the region from 2022.

There are specific categories of transactions and documents to which certain provisions of the ETA do not apply. The exclude matters are as follows: 

1. The creation or execution of a will.
2. The creation, performance, or enforcement of an indenture, a declaration of trust, or a power of attorney, with the exception of implied, constructive, and resulting trusts.
3. Any contract for the sale or other disposition of immovable property or any interest in such property.
4. The conveyance of immovable property or the transfer of any interest in immovable property. 

The Electronic Transactions (Amendment) Act 2021 (“Amendment Act”) came into force on 19 March 2021. One of the significant amendments is to adopt the United Nations Commission on International Trade Law Model Law on Electronic Transferable Records (UNCITRAL MLETR) with modifications. Among other things, the ETA amendments will enable the creation and use of electronic trade documents such as negotiable instruments, documents of title, bills of exchange, promissory notes, consignment notes, bills of lading and warehouse receipts.

Singapore is amongst the first major trading hubs to adopt with modifications the UNCITRAL MLETR. This is a significant progress towards digitalization of the industry that traditionally relies on paper-based trade documentation. The adoption of this globally harmonized framework is expected to promote more domestic and cross-border electronic transactions. The ETA amendments also ensure that reliable methods will be used to ensure the authenticity and reliability of electronic transferable records.