Audit finds spending and governance failures in Malaysia’s MyDigital ID

Security, trust and transparency are often cited as benchmark standards for a national digital identity system. An audit report of Malaysia’s signature MyDigital ID project places it under the transparency microscope.

The Auditor-General’s Report has outlined multiple faults in the spending and management by Mimos Berhad for MyDigital ID, reports Sinar Daily. The audit examined a period from July 2023 to March 2025 and the RM28.13 million (US$7.2m) spent from the RM80 million ($20.48m) initially allocated for the initiative.

The country’s Home Ministry provided the funds to My Digital ID Sdn Bhd (MyDIDSB), following the company’s establishment. MyDIDSB is a special-purpose vehicle (SPV) company Mimos created on January 15, 2024, for the project.

Significant expenditure proceeded without approval from designated project committees, the audit found. Spending to the amount of RM28.13 million ($7.2m) occurred without approval, according to the report.

This included RM4.08 million ($1.04m) in spending across 11 project sub-scopes without allocation of funds or in excess of allocated funds. An additional RM70,000 ($17,927) was expended beyond the total cost for a single sub-scope.

“This indicates weak internal controls and non-compliance with the established governance and mandate,” the report says, as reported by New Straits Times.

The audit determined that RM14.09 million ($3.61m) earmarked for development projects was instead spent on resource costs, medical facilities and office equipment. This use of funds breached the implementation guidelines of the 12th Malaysia Plan (12MP), as the expenditures did not match the intended purpose of the allocation.

The Home Ministry allocated RM80 million in development funds to Mimos, which was required to provide detailed expenditure reports for oversight by a designated committee.

The audit found irregularities in procurement, noting that security cages and door access systems were purchased without approval from the Value Assessment Lab. The equipment has not been used, resulting in wasted expenditure and highlighting weak asset management.

The report emphasized that Mimos board members carry fiduciary responsibilities and must ensure strict adherence to governance and internal control procedures. “This includes the need to comply with conditions imposed by the Home Ministry on the management of My Digital Sdn Bhd (MyDIDSB),” the report adds.

Malaysia is aiming for 17 million MyDigital ID registrations by the end of this year and is testing integration with 18 banks as biometric-enabled digital identity is steered toward financial infrastructure in the country’s ongoing digital transformation drive.

The audit of the MyDigital ID project is part of a wider remit overseen by Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi. Presented with the consent of Malaysia’s king, the 15-volume report spans both federal and state ministries, departments, statutory bodies and agencies, as well as state-owned company management. The audit found 273 new issues around financial management and governance — more on these wider issues can be found on Bernama.

Article Topics

digital ID  |  Malaysia  |  Mimos  |  MyDigital ID  |  national ID  |  research and development