04/10/2025

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SATURDAY | OCT 4, 2025

Malaysia setting example in GovTech KUALA LUMPUR: Malaysia is well positioned to lead the region in Government Technology-driven o World Bank says country showing how digital transformation can drive productivity and build trust between citizens and government Ű BY HAYATUN RAZAK sunbiz@thesundaily.com services and unlocking new avenues for economic productivity and inno vation. Malaysia’s substantial investments in GovTech – digital infrastructure such as MyGovCloud and MyDigital ID – with positioning the country as a regional leader in digital government maturity and connectivity.

“In cognisance, the 13th Malaysia Plan sets forth comprehensive stra tegies to advance artificial intel ligence (AI), strengthen GovTech and establish secure-by-design digital systems that are efficient, transparent and centred on the needs of the rakyat ,” he said. Digital Minister Gobind Singh Deo said Malaysia’s digital journey is about adopting new technologies and creating a government that is inclusive, responsive, and trusted. “With platforms like MyGovCloud and MyDigital ID, and new insti tutions to drive digital reforms, we are laying the groundwork for citizen centred services. The next priority is to strengthen digital skills, modernise data policies, enforce regulations and expand participation so that every Malaysian feels the benefits of digital transformation in their daily lives,” he said. The World Bank’s report credits

The report noted that Malaysia has made strides in delivering user centric services across government to-citizen (G2C), government-to business (G2B), and G2G channels, underpinned by both physical one stop service models and a growing portfolio of digital platforms. The report also said Malaysia has made substantial progress in digital ising public services, with nearly 72% of over 43,000 services now available end-to-end online. Federal-level digitalisation is strongest at 89%, compared to 59% at the state level and 85% at the local level. Furthermore, the report stated that Malaysia is leading G2C plat forms, outperforming its peers, although gaps in user-centred design remain. Notably, Malaysia has demonstrated significant progress in developing and implementing key digital platforms to support public service delivery. The country has fully operationalised critical e-service portals, including tax services, e-payment systems, and job portals, often surpassing both Asean and Organisation for Economic Co operation and Development averages in e-service delivery. The World Bank said the Inland Revenue Board’s introduction of pre filled tax fields and the broader rollout of one-stop Urban Transformation Centres demonstrate Malaysia’s com mitment to convenience and inte gration. Additionally, the MyGov Malaysia mobile app was developed and launched in August as a super app that aims to host 34 different govern ment service applications. However, while platforms such as MyTAX and MyOnline Passport receive high user satisfaction ratings, others, such as MyDigital ID and the open data portal, reflect lower ratings, highlighting opportunities for im provement through more user centred design, the World Bank report said.

(GovTech-driven) productivity, and the country is setting an example for the region on how the push for digital government can drive productivity and build trust between citizens and government. World Bank division director for the Philippines, Malaysia and Brunei Zafer Mustafao lu said the focus on digital transformation comes as Malaysia’s economy shows resilience amid global headwinds. “While domestic demand re mains strong, external risks weigh on exports, making reforms such as GovTech critical to boost pro ductivity and sustain the country’s high-income ambitions,” he said at the launch of the World Bank’s latest Malaysia Economic Monitor report titled “From Bytes to Benefits: Digital Transformation as a Catalyst for

Public Sector Productivity” here yesterday. Notably, Malaysia has formally launched GovTech Malaysia as a central pillar in its digital trans formation initiative, aiming to modernise public service delivery and standardise digital experiences across government platforms. One of the key components is the Malaysia Design System (MyDS), which ensures consistency and usability across government websites and apps. Under the MyDIGITAL agenda, the government is introducing chief digital officers in ministries and promoting the adoption of shared digital infrastructure to reduce duplication and enhance efficiency.

In parallel, the GovTech Inno vation Skilling Pilot Programme under MyDIGITAL fosters tech skills among public servants to better implement and maintain GovTech solutions. To support the broader digital economy, Malaysia is experiencing massive digital investment inflows, with approved digital investment reaching RM66.22 billion in the first half of 2024 alone, surpassing the total for all of 2023. Finance Minister II and Economy Minister Datuk Seri Amir Hamzah Azizan, in his virtual speech, said digitalisation will play a pivotal role in enhancing the efficiency of public institutions, improving the accessi bility and delivery of government

From left: World Bank senior public sector specialist,

institutions, Dr Marco Larizza,

country manager for Malaysia Judith Green, Digital Ministry secretary general Fabian Bigar, Mustafaoglu and Bank Negara Malaysia deputy governor Datuk Marzunisham Omar presenting the latest World Bank Malaysia Economic Monitor Report. – BERNAMAPIC

BNM, PayNet to roll out AI-powered fraud detection system next year KUALA LUMPUR: Bank Negara Malaysia (BNM) and Payments Network Malaysia Sdn Bhd (PayNet) are developing an artificial intel ligence-based fraud detection system targeted for rollout next year. provides a secure platform for regulators, financial institutions and private sector players to test and develop new digital products. “The industry, through AICB, is also developing a framework to be shared among industry players to guide responsible adoption of AI,“ he said. “We believe this model would tackle fraud and scams, ensure broader financial inclusion and address compliance challenges specific to our market while securing sensitive data never leaves the country.

transaction is confirmed. “This predictive analysis is something we are working on, and I hope we will be able to roll it out sometime next year,“ he said in a panel session at the release of the October 2025 World Bank Malaysia Economic Monitor report yesterday. Marzunisham said the system forms part of the central bank’s broader measures to combat mule accounts and strengthen public protection against online scams. Marzunisham said BNM is pushing ahead with broader digital initiatives. He pointed to the Digital Asset Innovation Hub, which he said

“This hub is an important initiative to encourage innovation in a safe environment,“ he said. Marzunisham noted that finance has been one of the fastest sectors to digitalise, particularly in banking, payments and financial services. He cited a survey by the Asian Institute of Chartered Bankers (AICB), which found that more than 70% of financial institutions are already exploring various forms of AI and generative AI.

According to news reports, PayNet is exploring the development of a federated AI model, tentatively called FinancialGPT, to enhance fraud detection and strengthen security in digital payments. PayNet chief of staff Dr Endry Lim Zhen Wan said the large transaction modelmwould be trained solely on Malaysia’s financial transaction data to enhance resilience against cyber threats.

BNM deputy governor Datuk Marzunisham Omar said the system is being designed using machine learning, large language models , and AI to create predictive analysis from existing transaction data. “We could alert the customer whether a bank transfer is safe or potentially fraudulent, and it will be able to ask ‘Are you sure you want to make this transfer?’ before the

“It combines global best practices with national sovereignty, making it uniquely suited to Malaysia’s needs,“ he said. The Home Ministry recently stated that Malaysia incurred RM1.12 billion in losses from online scams in the first half of 2025. This follows a record RM1.58 billion in reported losses in 2024. - by HAYATUN RAZAK