Introduction

National Digital Identity is a Verifiable Platform of Trust aimed to verify the identity on the internet or individual virtual identity in the cyber world and not to replace MyKad

Digital Identity Verification Platform is for the use of government and private service sectors mainly to meet the needs to verify identities of individuals who accessed electronic services, perform transactions and digital signatures provided by them.

Background

Various efforts have been done to ensure Malaysia’s readiness in acquiring digital landscape and telecommunications infrastructure. As a result, currently 90% of the government services are online, while e-commerce users penetration are 61.6%. Meanwhile, 62% of the business companies are with internet subcriptions. Detailed study conducted by Malaysian Communication and Multimedia Commission (MCMC) recorded the broadband breakthrough for 100 people in Malaysia is at 121.1% in 2018 while the mobile cellular breakthrough is 130.2% at the same time. The readiness in terms of digital landscape and telecommunications infrastructure is important in ensuring the effectiveness of the service sector digital transformation, supporting the growth of digital economy and encouraging the digital lifestyle among the people inclusively with the launching of the National Fiberisation and Connectivity (NFCP) launched by MCMC as one of the latest strategies to support the achievements of this aspiration.

Meanwhile, these infrastructure readiness aspects need to be supported with the demand consisting of various services that encourage subscriptions to the telecommunications infrastructure. The National Digital Identity Initiative becomes a strategic step contributing an added value to the development and needed transformation in the current service sectors which are moving towards the digital platform. Indirectly, it supports other initiatives such as MAMPU’s Government Online Services 2.0 (GOS 2.0), Central Bank (BNM) Financial Sector Blueprint 2011 – 2020, Know-Your-Customer electronic usage by the banking sector and in line with National E-Commerce Strategic Direction Plan by Ministry of Investment, Trade and Industry (MITI) and Sharing Economy Roadmap by Malaysia Digital Economy Corporation (MDEC). At the territorial and global stage, Malaysia is capable in exploring the digital service based on the cross-border with other nation through safe and guaranteed Digital Identity ecosystems.

Problem Statement 

Currently, the government and the private digital service providers are providing digital identity verification management systems to the clients independently which resulted with these problems:

1. The System fragmentation resulting to the preparation and maintenance cost duplications 
2. There is no standardization in identity verification 
3. The threat to safety and privacy of users’ data and 
4. Bumpy user’s online experience while getting online service due to various password log in for multiple online access. 

Objectives

The implementation of the National Digital Identity will support the Government digital service efficiently and enhance the development of the digital economy inclusively while elevating the confidence towards the Government and private online services. It is expected to benefit and make a positive impact to the following parties:

Parties	Benefits
PEOPLE/USERS	Experience smooth, safe and data privacy-guaranteed online experience Time and cost savings compared to counter transactions
GOVERNMENT	Stimulate and drive the nation towards digital transformation to elevate trust and user’s safety for online interactions.  Improve online services quality more efficiently and cost savings service delivery.
ONLINE SERVICE PROVIDER	Improving efficiency and cost savings in terms of user registration, develop and maintaining their digital identity verification systems Encourage offers of new online services such as finetech, platform economy, apps economy and others.

Current Status 

Through the Minister of Communications and Multimedia (KKMM), MCMC’s proposal of the implementation of the National Digital Identity has been brought to the Cabinet Meetings and the bill was passed on 8 May 2019. The passed bill includes the agreement for KKMM to lead the National Digital Identity initiative coordination and through MCMC, detailed study regarding landscape, implementation model, cost analysis, follow-up steps and the benefits from National Digital Identity will be tabled. This detailed study will include the participation from various main stakeholders and industry players from public and private sectors identified as supporters of the achievement for the National Digital Identity initiative implementation.

As an input and support to this detailed study, the Proof of Concept (PoP) session for Digital Identity is currently being carried out by the Digital Identity Working Commitee chaired by MCMC under the Thematic Focus Group of Digital Economy Cluster (DEFG), Minister of Communications and Multimedia (KKMM), Malaysian Administrative Modernisation and Management Planning Unit (MAMPU) is responsible to drive the Digital Identity PoC for the Public Sector while Malaysia Digital Economy Corporation (MDEC) implements PcO for the Private Sector.

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