The Electronic Transaction Act to be tabled in Parliament in October is part of the government's effort to prevent e-commerce frauds, a government official said today.

The new act, if approved, could probably make Malaysia the first Asian country to enact legislations for internet businesses.

According to Domestic Trade and Consumer Affairs Ministry's Domestic Trade Division principal assistant director Mohamed Azni Mohamed Ali, there were no laws to control e-commerce in Malaysia at present.

Due to this, many people who joined the business thinking they could make quick profits were cheated, he said.

Attract many people

Mohd Azni was quoted by Bernama as saying that many of those who operate these businesses are foreign companies who have their own websites and such schemes will attract many people as it is worldwide.

The biggest case exposed in Malaysia was the Skybiz where 65,000 people were involved and each had to pay RM380.

"However, the government had announced that the business is a pyramid scheme and America, where it originated, took action in March last year," he said.

He said since there were no laws the government was not responsible for those involved.

"Whatever happens they are responsible for themselves. Even the international laws are not applicable to internet businesses. However, there are some countries that have created such laws.

In Asia, we may be the first," Mohamed Azni said.

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