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Global: Malaysia’s Digital Transformation Reorganization of Ministries and Agencies

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Malaysia's Digital Transformation: Reorganization of Ministries and Agencies
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Malaysia’s Cabinet, led by Communications Minister Fahmi Fadzil, has approved significant changes, including the relocation of its digital ID system and the related public corporation. Digital Nasional Berhad (DNB), responsible for Malaysia’s 5G network, and Cybersecurity Malaysia will now fall under the jurisdiction of the Digital Ministry.

As part of this reorganization, Mimos Berhad, currently under the Prime Minister’s Department (JPM), will move to the Science, Technology, and Innovation Ministry. Furthermore, Malaysia’s digital ID system, developed by Mimos through the Malaysia Digital Economy Blueprint initiative, will be transferred to the Digital Ministry upon its full implementation in March. Minister Fadzil emphasized that rebranding efforts will accompany this transition to ensure clarity regarding digital safety.

“These decisions, made by the Cabinet on January 10th, outline the relocation of DNB and Cybersecurity Malaysia,” stated Minister Fadzil during a press conference. He also highlighted the achievement of the 80% coverage target for Malaysia’s 5G network in populated regions, reaching 80.2% in December.

In addition to these changes, the Malaysian Administrative Modernisation and Management Planning Unit and Malaysian Digital Economy Corporation will now operate under the Digital Ministry. However, the Malaysian Communications and Multimedia Commission remains under the Communications Ministry and is unaffected by the restructuring.

The Digital Ministry, established last year during a Cabinet reshuffle, marked a pivotal step in Malaysia’s commitment to digital transformation, with former communications minister Gobind Singh Deo serving as its inaugural minister. Other adjustments include the management of the Drainage and Irrigation Department and the Environment and Climate Change Ministry falling under the Energy Transition and Public Utilities Ministry, led by Deputy Prime Minister Datuk Seri Fadillah Yusof.

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