Malaysia targets 15M MyDigital ID users, 2026 funds allocated

Through tooth and nail will Malaysia see its national digital ID popularized. While Malaysia is among several others in Southeast Asia to pursue digital identity and digital transformation, the country is showing serious intent with the cash to back it up.

The strategic pivot can be seen in NextG’s six-year contract to modernize Malaysia’s national ID card infrastructure, which includes biometric ID card production, and how it is targeting expansion into ASEAN and Africa to bring “homegrown Malaysian innovation” to the world.

Malaysian Prime Minister Datuk Seri Anwar Ibrahim has set out a target of 15 million users for MyDigital ID by the end of this year. The leader’s aim was announced during Malaysia’s Budget 2026 brief, during which it was also detailed that the national digital ID project will encompass sectors such as finance, communications, healthcare and e-trading.

Malaysia’s ambitions for a technologically-powered economy and society was further backed in its Budget 2026. “Among the highlights is the RM53 million [US$12.5 million] allocation for the Malaysia Digital Acceleration Grant, which will catalyse the growth and adoption of emerging technologies such as blockchain, AI, and quantum computing,” said Digital Minister Gobind Singh Deo. “These technologies are central to building an ecosystem that is future-ready and globally competitive.”

Malaysia’s government has also allocated RM18.1 million ($4.3 million) for the National AI Office (NAIO). NAIO shapes the country’s AI strategies and policies and fosters collaboration across ministries and the private sector. “NAIO’s efforts are vital in ensuring Malaysia remains at the forefront of AI adoption and governance in the region,” Gobind said.

Cybersecurity is vital to digital transformation and the Digital Ministry said RM30 million ($7.1 million) had been allocated to strengthen this. “This measure is both timely and strategic as it focuses on enhancing digital trust — a cornerstone of our nation’s digital transformation. Strengthening digital trust involves not only bolstering cybersecurity resilience but also ensuring the protection of data, the confidentiality of information, and the integrity of systems that Malaysians rely on every day,” Gobind explained.

He added the allocation will expand cybersecurity programs including developing advanced cryptographic security services. The budget includes RM20 million ($4.7 million) to further develop the MyGOV mobile app, the e-gov portal, to enhance accessibility and expand the digitalization of government services.

Budget 2026 includes an allocation of RM5.9 billion ($1.39 billion) for research, development, commercialization and innovation across ministries. “A particularly forward-looking initiative is the proposal to establish a Sovereign AI Cloud, with a RM2 billion [$473 million] investment through the Malaysian Communications and Multimedia Commission,” said Gobind. “This will lay the foundation for Malaysia’s secure, sovereign AI infrastructure — ensuring national data is protected while enabling innovation and large-scale AI applications.”

In addition, the government announced an additional 50 percent tax deduction for micro and SMEs involved in AI and cybersecurity training courses accredited by the MyMahir National AI Council for Industry (NAICI), TalentCorp and MyDigital.

The 2026 Budget is the first under the 13th Malaysia Plan (2026–2030), which includes many measures to realize the country’s aim of becoming an “AI Nation” by 2030.

MyDigital ID, developed by MIMOS since 2016, is underpinned by 32 registered patents that includes secure authentication, access control, transaction signing, key management and physical cryptographic verification. Among these are patents for “User Authentication for Online and Offline Applicability” and “Crypto-Physical Lock Control and Authorisation.”

The system has earned Common Criteria EAL3+ certification, an internationally recognized  security benchmark which tests resilience against cyber threats. Additionally, MyDigital ID adheres to ISO/IEC 29115:2012.

Article Topics

digital economy  |  digital ID  |  digital trust  |  Malaysia  |  MyDigital ID  |  MyGOV Malaysia