Malaysia’s national digital identification system – MyDigital ID – is nearing 700,000 registered users.
Mohamed Redzuan Abdullah, chief solutions officer of MyDigital ID, said the system is highly secure, with a zero per cent false acceptance rate, ensuring that no one is issued with an identity certificate that doesn’t belong to them.
However, he admitted there were still some issues to iron out, as the false rejection rate is hovering around 14 per cent.
“What we mean by ‘false rejection rate’ is that a person may have filled in the correct information but is rejected either because the system couldn’t read the MyKad, or there was an error when entering the data,” said Redzuan on the sidelines of the ‘AI in Finance – Current Applications and Future Trends’ event held in Kuala Lumpur, yesterday.
“Sometimes, this is because when taking a snapshot of the MyKad, there could be a glare or a lighting issue, which makes it difficult to see or read the information.
“We are dependent on the National Registration Department. It does not have high-resolution copies of a person’s photograph, which may make it difficult for the system to verify the details.”
Despite this hiccup, Redzuan said he is proud of the zero false acceptance rate.
“No one has received an identification certificate that doesn’t belong to them,” he said.
“However, we get criticised on social media when registrations are rejected. I understand their frustration.
“We are working closely with our technology partner, Wise AI, to solve the issue and are confident we can reduce the false rejection rate to a single digit by next year.”
MyDigital ID is a national identity management and trusted digital identification system. It is a platform for transaction signing created to address flaws like unsecured communication channels and user credential storage.
MyDigital ID Sdn Bhd is a subsidiary of the Malaysian Institute of Microelectronic Systems (Mimos). Its logins are integrated with services like MySejahtera, MyGov Portal, and HRMIS (the government human resources portal).
Financial institutions such as banks, insurance companies, and e-wallet providers will soon be able to integrate MyDigital ID as a solution for eKYC (electronic-know-your-customer) and transaction authorisation.
MyDigital ID Sdn Bhd was formed in January and tasked with managing and developing the national digital identification system under the National Security Council.
Separately, Dr Xiao Jing, Chief Scientist of Ping An Group of China, said the national digital identity certificate will cut red tape and make it easier for users to deal with government agencies or financial institutions.
He said since the shift to digital identification in Shenzhen more than five years ago, the waiting time and queues at government offices have dropped significantly.
“Because the data is already in the system, a person can skip many of the processes when filling out government forms or applying for loans,” said Xiao.
“So, with Malaysia moving forward with its MyDigital ID, I foresee advantages, as it can eliminate red tape.
“We should embrace AI, as it will help reduce the workload and make things more efficient.”
David Lim, Wise AI chief executive officer and a National Blockchain and AI committee member, agreed with Xiao.
He said AI is reshaping the global financial sector, from algorithmic trading and fraud detection, to streamlined banking and research.
“AI’s ability to analyse vast amounts of data in real-time offers immense opportunities for enhancing productivity, reducing costs, and improving decision-making,” said Lim.
“It is also opening new avenues for risk management, fraud prevention, and regulatory compliance.
“These advancements are helping financial institutions better understand market dynamics, predict trends, and make informed, data-driven decisions that drive growth and stability in an increasingly complex global environment,” he added.
