Malaysia

Digital transformation key to public sector competitiveness, says Finance Minister II

Amir Hamzah says the 13MP positions digital innovation as a driver not only of economic growth, but also of public service efficiency, equity, and national resilience

Updated 8 months ago · Published on 03 Oct 2025 2:03PM

Digital transformation key to public sector competitiveness, says Finance Minister II
GovTech and digital innovation will be critical in delivering more effective public services - October 3, 2025

MALAYSIA’S digital transformation agenda under the Thirteenth Malaysia Plan (13MP) is set to become a key enabler of long-term national competitiveness, driving productivity, inclusivity, and structural reform, according to Finance Minister II Datuk Seri Amir Hamzah Azizan.

Speaking at the launch of the World Bank’s latest Malaysia Economic Monitor report, Amir said the strategic adoption of government technology (GovTech) and digital innovation will be critical in delivering more effective public services, while reinforcing macroeconomic stability.

“As we navigate the increasing complexity of today’s economic landscape, it is clear that Malaysia must remain agile in shaping timely, relevant, and coherent policy responses,” Bernama reported him saying.

“This is essential not only to safeguard macroeconomic stability, but also to strengthen our fiscal resilience, enhance revenue generation and advance structural reforms,” he added.

The 31st edition of the ‘Malaysia Economic Monitor’, titled From Bytes to Benefits: Digital Transformation as a Catalyst for Public Sector Productivity, highlights the government’s digital ambitions under 13MP and the need to harness innovation for social and economic progress.

Amir Hamzah stressed that digitalisation must serve broader goals beyond economic growth.

“Under the Thirteenth Malaysia Plan, digital transformation is not just an economic agenda, but a driver of social progress,” he said.

“By expanding access, strengthening digital skills, and harnessing technologies such as artificial intelligence (AI), we can reduce inequality, uplift living standards and create opportunities for all Malaysians,” he said.

He added that safeguarding public trust through strong cybersecurity and responsible data governance is essential to ensure that digital benefits are widely and equitably shared.

Malaysia Outperforming Regional Peers in GovTech

According to Zafer Mustafaoglu, the World Bank’s division director for Brunei, Malaysia and the Philippines, Malaysia’s performance on the GovTech Maturity Index (GTMI) surpasses that of its ASEAN and OECD counterparts in several key areas.

“Malaysia is setting an example for the region on how GovTech can drive productivity and build trust between citizens and government,” said Mustafaoglu.

He pointed to Malaysia’s achievements in cloud computing, the Government Service Bus (GSB), and the adoption of emerging technologies as clear signs of its commitment to digital transformation.

GSB refers to a secure and standards-based digital integration platform that enables real-time data exchange and automation across government systems—seen as a vital infrastructure backbone for GovTech initiatives.

“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,” he added.

The World Bank report underscores the urgency of embedding digital tools across all levels of public administration, alongside investments in digital skills, service delivery, and institutional trust. - October 3, 2025

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