World Bank report highlights Malaysia's progress in public sector digital transformation

World Bank report highlights Malaysia's progress in public sector digital transformation
Banking & Financial Services
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Ajay Banga, 14th president of the World Bank | Linkedin

Malaysia is advancing its digital transformation in the public sector, according to a new World Bank report released on October 3, 2025. The report, titled “From Bytes to Benefits: Digital Transformation as a Catalyst for Public Sector Productivity,” highlights Malaysia’s significant investments in government technology (GovTech), including digital infrastructure such as MyGovCloud and MyDigital ID.

The World Bank credits these efforts with positioning Malaysia as a regional leader in digital government maturity and connectivity. The findings are supported by what the organization describes as the largest survey ever conducted in Malaysia on civil servants’ digital skills, human resource management practices, and experiences with digital tools.

“Malaysia is setting an example for the region on how GovTech can drive productivity and build trust between citizens and government. The World Bank is committed to supporting Malaysia in its journey to enhance government efficiency, which will enable private sector growth and higher quality jobs for Malaysians,” said Zafer Mustafaoğlu, World Bank Division Director for the Philippines, Malaysia and Brunei.

The push for digital transformation comes at a time when Malaysia’s economy remains resilient despite global challenges. While domestic demand continues to be strong, external risks are affecting exports. In this context, reforms such as those involving GovTech are seen as important steps toward improving productivity and maintaining progress toward high-income status.

“Digitalization will play a pivotal role in enhancing the efficiency of our public institutions, improving the accessibility and delivery of government services and unlocking new avenues for economic productivity and innovation. In cognizance, the Thirteenth Malaysia Plan sets forth comprehensive strategies to advance Artificial Intelligence (AI), strengthens Government Technology (GovTech) and establishes secure-by-design digital systems that are efficient, transparent and centred on the needs of the rakyat. The intent is clear. The Government is working to ensure that no Malaysian is left behind in this digital journey,” said YB Senator Datuk Seri Amir Hamzah Azizan, Malaysia’s Minister of Economy.

The report recommends continued reform efforts focused on four main areas: building robust digital platforms; enforcing clear policies with accountability; cultivating a digitally skilled workforce; and enhancing user-centric service delivery.

“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 institutions to drive digital reforms, we are laying the groundwork for citizen-centered services. The next priority is to strengthen digital skills, modernize data policies, enforce regulations and expand participation so that every Malaysian feels the benefits of digital transformation in their daily lives,” said Malaysia’s Minister of Digital YB Gobind Singh Deo.