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Southeast Asian countries have been among the global pioneers in digital identity, with the Philippines and Singapore’s systems among the most advanced in the world.

Others, like Malaysia and Indonesia, are racing to catch up, with the former aiming to digitalize 95% of all government services by 2030. Meanwhile, Indonesia is set to award six contracts as part of its digital ID project by the end of next year.

Malaysia’s ambitious digital ID plan

Malaysia unveiled its 13th Malaysian Plan (13MP) last week, focusing on its latest economic development framework to elevate it into a high-income country by the end of the decade.

One of the key pillars of this bold vision is MyDigital ID, a single sign-on digital identity platform first launched in 2023. Under 13MP, the country aims to provide at least 95% of all government services digitally by 2030.

Nik Hisham, who heads MyDigital ID, revealed that the system has been integrated into 45 online platforms across the public and private sectors. He added that his agency is working on expanding the available services to keep up with its neighbors.

While easy access is critical for the new system, earning the public’s trust remains the agency’s priority.

“The main focus of MyDigital ID is to become a real-time digital trust system. As adoption continues to grow, it not only simplifies public access but also strengthens the nation’s digital sovereignty and security,” Hisham stated.

Malaysians’ distrust of the new system has resulted in low registrations; only about 10% of the adult population has signed up for MyDigital ID in the two years since its launch. To boost the numbers, the government has proposed making it mandatory for all government services, a move some industry leaders have criticized.

Dr. Megat Zuhairy Megat Tajuddin, the CEO of local think tank National Cyber Security Agency, opined a week ago that the new system “must be built on trust, transparency, and voluntary adoption.”

“MyDigital ID is a powerful tool. But its strength lies in its ability to build trust, not enforce compliance,” he wrote in an op-ed for a local paper.

The Social and Economic Research Initiative (SERI), another think tank based in the capital Kuala Lumpur, concurred, stating, “Compulsion before confidence risks undermining the very system we are trying to build.”

To boost trust in the new system, MyDigital ID’s Hisham has reiterated that it will not store the citizens’ biometric data, such as fingerprints and facial scans.

The government has also proposed the establishment of an independent body that would focus on safeguarding citizens’ data. The new agency would be known as the National Data Commission, overseeing data governance and promoting public trust.

Indonesia to issue multiple digital ID contracts

In neighboring Indonesia, the government intends to issue up to six separate contracts under its digital ID for Inclusive Service Delivery and Digital Transformation project.

The first contract is set to start the prequalification process within the next few weeks for a backup automated biometric identification system. It will cost the government $12 million and will be handed out by February next year.

Others include a contract for a document archiving system and another for software for the country’s Certificate Authority, both set to be awarded in the second half of next year. The latter will cost the government $5.5 million.

The new contracts are reviving Indonesia’s digital ID vision, whose deployment had been hindered by the cancellation of nearly two dozen contracts this year. Local sources claim the contracts were cancelled after the World Bank raised concerns over procurement irregularities. The Washington-based financier is funding the project, whose total cost is estimated at $250 million.

The World Bank has been known to take a keen interest in procurement processes for projects it finances. In the DR Congo, it pulled out of a digital ID project mid-last year due to the absence of a competitive tendering process. Investigations later revealed that French firm Idemia had massively overpriced its services, and its contract was cancelled later that year.

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