KUALA LUMPUR – Cybercriminals operating outside Malaysia could face legal action under the country’s new Cyber Crime Bill 2026, as the government moves to strengthen its response to cross-border online scams and AI-driven fraud.

Under Clause 2 of the legislation, Malaysian authorities can take legal action against offenders based overseas as though the offences had been committed in Malaysia, provided the crimes involve computer systems in the country or Malaysian victims.

In a written parliamentary reply to Dato’ Haji Shamshulkahar Mohd Deli (Jempol), the Prime Minister said the provision addresses the increasingly borderless nature of cybercrime, which has made it more challenging for enforcement agencies to track and prosecute offenders.

The government will also utilise existing international cooperation mechanisms to facilitate investigations, prosecution and, where applicable, the extradition of foreign suspects to Malaysia.

The Cyber Crime Bill 2026, passed by Parliament in July 2026, is also designed to address emerging threats involving artificial intelligence (AI), including identity impersonation, deepfake videos and digital manipulation.

Clause 23 expands the scope of offences involving digital impersonation through computer systems, particularly as AI technology makes it increasingly difficult to distinguish fabricated videos, images and voices from genuine content.

The legislation also strengthens investigative powers through provisions covering data preservation, data disclosure, traffic data collection and communications interception.

These powers are intended to help enforcement agencies secure critical digital evidence before it can be deleted, modified or transferred.

Meanwhile, Clause 54 empowers courts to issue orders to stop unlawful activities and protect victims, including restitution orders and restrictions on suspected criminal assets.

Such orders may be sought by the Public Prosecutor or an authorised officer even before a suspect is formally charged.

The new legislation will replace the Computer Crimes Act 1997 (Act 563), addressing gaps in the existing legal framework and strengthening Malaysia’s capacity to combat increasingly sophisticated cybercrime.

The government said the measures would enhance enforcement capabilities, improve international cooperation and provide stronger protection against online fraud involving AI technology.