‘Make AI an ally’

 

AS universities grapple with regulating the use of artificial intelligence (AI) among students, a niche service sector has already emerged.

Third parties are now advertising services on e-commerce platforms to help students bypass AI detectors in their submissions.

These services, marketed as “humanising” AI-generated assignments, involve making machine-produced material sound more like it was written by an actual person. This is done by refining text, replacing overly formal phrasing with more conversational language, or weaving in personal stories and anecdotes.

Stressing the need for varsities to safeguard academic integrity, educators cautioned that this is essential to ensure that students genuinely develop the competencies and skills their qualifications claim to represent.

This, they argued, requires rethinking student assessment models, including moving away from one-off major exams, integrating continuous assessment of the learning process, and introducing formal declarations of AI use - similar to acknowledging collaboration with peers.

“When learning activities are designed to consider not just the final outcome, but also the process, the responses, and how students engage with the material, those elements can serve as meaningful forms of learning assessment,” University of the Philippines Open University (UPOU) development communication Prof Melinda dela Peña Bandalaria told StarEdu.

A former UPOU chancellor, Prof Melinda also served as president of the Asian Association of Open Universities, championing massive open online courses and open educational resources across the region.

“It is no longer just about teaching because knowledge today comes from many different sources.

“Our role is to determine the right level and type of assessment, so we can truly certify that an individual has gained the necessary competencies and skills,” she said.

Rooted in culture

Prof JungEducation Research Institute visiting research fellow Prof Insung Jung at Seoul National University, South Korea, said students’ reliance on “humanised” AI services is closely tied to societal pressures.

“It is a universal issue, especially in societies that place a strong emphasis on achievements and admission into top universities. This pressure tends to be even stronger in Asian cultures,” she said.

The pressure, said Prof Jung - who has over three decades of experience in open, distance and digital education - is compounded by the fact that some institutions discourage AI use, pushing students to conceal it.

“Students often aim to produce quality work quickly, but then conceal their use of AI. This is partly because some education institutions discourage AI use.

“As a result, students resort to using ‘humanised’ AI responses to avoid detection,” she explained.

In contrast, she noted that Japan’s education and employment practices create a different dynamic.

“In Japan, grades matter less because companies don’t hire based on transcripts. The minimum grade requirement is only 1.0 out of 4.5.

“Whereas in Korea, if you don’t have, for example, 3.0 out of 4.5, you don’t even get to apply for jobs at companies,” said Prof Jung, who spent 19 years teaching in Tokyo, Japan.

Agreeing, University of South Africa Emeritus Prof Paul Prinsloo noted that societal norms often influence how students perceive integrity.

“Another factor is when corruption is deeply embedded in a national culture and people routinely get away with it - without naming any specific countries or regions.

“In such environments, students may grow up believing it is acceptable to pay off authorities or buy their way through life.

“This creates a distorted sense of right and wrong, as dishonesty feels justified - everyone is doing it, or they believe they will not be caught,” Prof Prinsloo, whose expertise is in open and distance e-learning, AI in education and the ethics of student data use, explained.

Focus on learning

The real issue, Prof Prinsloo highlighted, also lies in universities’ emphasis on outcomes rather than the learning journey.

“We did not prepare graduates properly. We focused too much on giving them the right answer instead of teaching them how to think and to find the answer,” he admitted, adding that the focus is now slowly shifting to the learning process.

A way forward is to integrate continuous assessment into the learning process, Prof Olaf Zawacki-Richter of University of Oldenburg, Germany, suggested.

Outsourcing assignments through student help services is relatively uncommon In Germany due to the country’s academic system, said the varsity’s Faculty of Education and Social Sciences dean.

“Students are not graded frequently as they only receive one graded project per module.

“Learning is project-based and collaborative, so lecturers can observe the students’ process step by step.

“This makes it transparent whether the students actually did the work themselves,” he said.

Even before the rise of AI, some institutions had been experimenting with alternative ways of engaging students in assessment.

Citing an example, Prof Prinsloo said some varsities require learners to evaluate their own work based on a clearly spelt-out guideline.

“Students grade their own assignments according to criteria, and then we compared their self-assessment with ours,” he explained.

Although not foolproof, the approach encouraged accountability by prompting students to reflect honestly on their performance and take ownership of their learning.

“It becomes part of their responsibility to own up and say ‘this is how well I think I did’,” he added.

Be transparent

Prof XiaoIt is human nature to look for shortcuts, making it crucial for universities to establish mechanisms that ensure responsible use of AI, said Emeritus Prof Junhong Xiao from Open University of Shantou, China.

“Whether we like it or not, AI will be used in education.

“We, as educators, ensure that students learn to use AI responsibly,” he said.

Rather than punishing students for turning to AI, Prof Prinsloo advocated embracing it as part of the learning process.

“I want to know how they use AI. What was their process? Did they check the answer? How did they validate the answers? We should be interested in the process,” he said, emphasising that students should be encouraged to use such tools responsibly.

He also underscored the importance of transparency in learning and collaboration, cautioning that punishment of AI use could drive students to discover new ways to cheat.

“One university even has a declaration that students fill in to say, ‘I worked with a colleague or AI in this assignment.’

“We almost always punish them for working together with other students or with technology when we should be open and encourage them,” he opined.

Likewise, Prof Melinda shared that her university has already introduced an AI policy at the institutional level.

Under the policy, students are required to declare and document how they engaged with AI, such as the questions they asked, the responses they received, and how they evaluated those responses.

“We ask ‘How did you use AI in your submission’, for instance?

“They have to track the actions they have taken and document it,” Prof Melinda explained.

She, however, acknowledged the challenges of enforcement, as declarations may not always be complete or fully honest.

“Of course, it’s not a guarantee that they will declare everything, especially if they submitted something that’s completely AI-generated. We still have to reflect and guard against that,” she added.

Note: Prof Melinda, Prof Jung, Prof Xiao, Prof Prinsloo and Prof Zawacki-Richter were speakers at the Open University Malaysia “Visionary Leadership: Charting the Futures of Digital Education” public lecture on Aug 6.

Thumbs up: Mustapha (ninth from left) with Prof Ahmad Izanee (seventh from right) with the speakers and guests at the public lectures series. - AZMAN GHANI/The Star

AI in academia

THE Higher Education Ministry is committed to preparing students for a future shaped by AI and digital transformation, says its Deputy Minister Datuk Mustapha Sakmud.

“We are improving how AI is taught and used across our universities.

“We are also building campus environments that support flexible learning, including better Internet access, modern learning spaces, and stronger support for academic staff,” he said at the Open University Malaysia (OUM) “Visionary Leadership: Charting the Futures of Digital Education” public lecture on Aug 6.

Held at a hotel in Kuala Lumpur, the free public lecture series was organised in conjunction with the varsity’s 25th anniversary.

Also present were higher education director-general Prof Dr Azlinda Azman, and OUM president and vice-chancellor Prof Dr Ahmad Izanee Awang.

Subsequently, in a parliamentary reply on Aug 26, Mustapha said the ministry has outlined several measures to address the use of AI in academic writing, namely:

Developing guidelines for AI use in higher education.

Monitoring and regulating practices at the institutional level.

Revising assessment and evaluation methods.

Strengthening teaching and learning approaches that support higher-order thinking skills.

Providing training and professional development.

Upholding a firm commitment to academic integrity.

Ensuring all new and existing courses will include AI-related elements starting from 2025.

Mainstreaming the integration of AI into curricula through an “embedded AI” approach across study programmes, according to the needs of each discipline, such as engineering, technology, social sciences, and service-related fields.

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AI and job transformation in Malaysia: What's next?

 

Experts share that the impact of AI may be more nuanced than just simply replacing people at work. — This visual is human-created, AI-aided

In a discussion on an online forum, a freelance translator in Malaysia believes that he has fewer job opportunities now due to clients turning to AI.

Another individual in the same discussion claims that he was laid off due to his stance against using AI tools in the company.

In a separate conversation, a designer questioned whether he should resign as a sign of protest against his company’s increasing reliance on AI to generate content. Meanwhile, another user who handles accounting tasks at work says AI is taking over his role after the company adopted a new AI-powered processing system. He claims that the system has led to some colleagues being laid off and those who remain will be required to verify the work performed by AI.

In the comments section, other users have advised him to look for a new job elsewhere as he risks being replaced completely, or start showing more productivity in other aspects of his current work that cannot be done by AI.

These conversations found online reflect a growing concern among Malaysian workers as AI tools become a part of work.

Staying ahead

According to an Ipsos AI Monitor 2025 survey involving 500 Malaysian adults, 63% fear AI’s potential to replace their ­current job within the next three to five years.

“The fear of being replaced by AI is very real, and it’s completely valid,” says Edvance CEO Razin Rozman.

Fahad encourages employees to experiment with various generative AI tools to discover how they can boost productivity at work. — Randstad Malaysia

Randstad Malaysia country director Fahad Naeem says findings from his company’s Malaysia Employer Brand research, which surveyed 2,588 respondents, show that 5% now expect to lose their jobs due to AI.

“Despite this, the overall sentiment towards AI remains largely positive, as 48% of Malaysian workers said that AI has improved their job satisfaction this year,” adds Fahad.

According to NTT Data CEO Henrick Choo, the best way to navigate the fear of being replaced by AI is to embrace lifelong learning and adaptability. He says that he has seen employees transition from traditional support roles to newly-created positions in AI operations, product testing and customer success – often within just a few months.

“Focus on roles that rely on uniquely human skills like ­empathy, decision-making, ­critical thinking, and creativity which are areas where AI still lags behind,” says Choo in a statement to LifestyleTech.

His advice to individuals would be to start investing in digital ­fluency by learning to work alongside AI tools, adding that they should embrace continuous learning and stay updated on the latest tools, trends as well as ­governance practices.

“AI is not here to replace ­people, but to augment their capabilities. The most successful professionals will be those who understand how to leverage AI tools while asking the right ­questions about data ownership, ethical use, and value distribution,” adds Choo.

Razin shares that individuals who have successfully adapted to the rise of AI often share key qua­­lities such as adaptability, curiosity, and a mindset geared toward continuous learning. He also believes that basic AI literacy is becoming essential in the work place regardless of whether an employee is in a technical role.

Razin says those who have ­successfully adapted to the rise of AI usually have a mindset geared toward continuous learning. — Edvance

“We’ve seen many success stories, people who were once in roles like administrative support or basic data entry, who, through upskilling, moved into project management, digital marketing, or even junior AI operations roles.

“What helped them stand out was the learning itself and the mindset shift. They saw AI not as the end of their role, but the begin­­ning of a new one,” says Razin.

As for Fahad, he encourages employees to experiment with various generative AI tools to ­discover how they can boost ­productivity at work. He says exposure and experiences can help employees gain a deeper understanding of AI’s potential and limitations to anticipate how their roles might change.

“With the increasing integration of AI, talent should discuss with their managers how their career pathway may change. This involves identifying areas for deepening specialisation, mapping out training opportunities and having a pulse on how job responsibilities may evolve with increasing digital and AI disruption,” adds Fahad.

Fahad says the company’s 2025 Workmonitor report involving 503 res­­pon­­dents in Malaysia shows that 53% of talents trust their employers to invest and provide opportunities for continuous learning particularly in AI and technology. He adds that 56% of responders trust their ­employers to be transparent about business decisions that will impact their role.

“It is clear that while employers are excited about rolling out AI-powered tools and solutions, they should also be transparent and forthright about how AI will transform the company’s operations and processes, and more importantly, how it will impact the employees’ job security and career prospects,” says Fahad.

Redefining work roles

Experts share that the impact of AI may be more nuanced than just simply replacing people at work.

“Yes, we are definitely seeing AI reshape job functions in Malaysia though it’s less about outright replacement and more about redefinition,” says Choo.

Choo says the next five to 10 years will mark the rise of ‘hybrid intelligence’ where humans and AI collaborate as equal partners. — NTT Data

Razin shares a similar sentiment, where he says the company is also starting to see signs of generative AI changing the shape of the labour market in Malaysia.

“At this moment in time, we’re witnessing more of its impact on job transformation than full-on replacement,” he says.

Razin adds that repetitive or process-driven roles are being ­partially replaced or heavily ­supported by AI tools. He cites examples like some companies turning to AI to automate customer service by using chatbots or to perform document sorting or data entry.

According to Choo, Gen-AI ­powered chatbots and voicebots are now able to handle “up to 90% of fact-based customer ­service queries”, reducing the need for large call centre teams.

Razin adds that his company is also seeing ­changes in sectors like marketing, finance, education and tech services.

“These industries are adopting generative AI to speed up ­routine work, which means job scopes are evolving,” says Razin, adding that some local banks have ­started automating things like loan processing and ­compliance checks.

“So, rather than cutting jobs, they’re moving people into new roles that focus on oversight and analysis,” says Razin.

A 2024 national study by TalentCorp reveals that around 620,000 jobs – equivalent to 18% of formal sector roles in Malaysia – are expected to be significantly impacted by AI, digitalisation, and the green economy within the next three to five years.

The 72-page report highlights 14 roles including incident investigator, cloud administrator, and applications support engineer as among those on the High Impact list. It also listed 51 roles on the Medium Impact list such as IT audit manager, ­customer ­experience manager and data centre operations ­engineer.

In an article published by the World Economic Forum in June, Human Resources Minister Steven Sim highlights the report’s findings and says: “Workers ­currently in these roles require cross-skilling, upskilling or even reskilling.”

Why AI?

The machine may be better than people for specific tasks at work. Fahad says AI-based ­solutions are capable of ­processing large volumes of data and look at established ­patterns or past history to ­perform ­repetitive tasks. The key here, he says, is that AI is able to do so with better accuracy and consistency.

“These tools are highly applicable in tasks that require ­standardisation, speed, and scale. AI systems can also ­operate round-the-clock, which increases outcomes and greatly reduces time and cost,” Fahad adds.

According to an Ipsos AI Monitor 2025 survey involving 500 Malaysian adults, 63% fear AI’s potential to replace their ­current job within the next three to five years. — This visual is human-created, AI-aided

Choo explains that tasks that would normally take human teams days to do – such as fraud detection, code generation or content summarisation – can now be completed by AI in a shorter amount of time.

“Generative AI, in particular, is a strong performer when applied to structured domains: drafting documents, generating marketing visuals and videos, producing basic code, and ­summarising reports,” Choo says, adding that these tools operate best when provided with clear inputs and boundaries, making them highly viable in predictable scenarios.

Apart from processing huge volumes of data, Razin says advanced AI solutions are also capable of ­spotting trends across complex datasets and are ­capable of ­continuously learning through feedback loops.

What the future brings

Prime Minister Datuk Seri Anwar Ibrahim has made it known that Malaysia is committed towards becoming a leader in AI and digital transformation in the Asean region.

During the launch of the National AI Office last year, he emphasised that Malaysia must embrace the need for tech-­driven change.

“History has shown that industrial revolutions and ­technological advancements ­initially sparked anxiety but ­ultimately created more opportunities. This is why training and digital literacy are critical in equipping our workforce for these changes,” he said in his speech.

As for the challenges inherent in the use of AI, Anwar emphasised in an Aug 18 report by The Star that Malaysians have to face the hurdles head-on by emphasising humanistic ­values and critical thinking.

“We must not only focus on developing expertise but also on nurturing values,” he explains.

While Malaysia has made meaningful progress through frameworks like the National AI Roadmap and the Digital Economy Blueprint (MyDigital) with initiatives that reflect strong policy intent and direction, Razin says the pace of AI adoption in the workplace is outstripping both skills development and ­policy execution.

“One of the most urgent gaps is in talent. There’s growing demand for AI-literate professionals such as engineers, data scientists, prompt engineers, and ethics specialists, but education and training systems haven’t yet scaled to meet this demand.

“The workforce also lacks widespread access to affordable, high-quality upskilling pathways that align with the real-world applications of AI,” he adds.

Razin believes for Malaysia to truly thrive in the AI era – ­policies must be “adaptive, data-­informed, and shaped in collaboration with those building and using these tools daily”.

Choo says the next five to ten years will mark the rise of “hybrid intelligence” where humans and AI collaborate as equal partners. He believes new AI-driven roles that have emerged include AI assistant trainers (experts to finetune how AI behaves and communicates) and AI governance leads (to ­oversee bias, ethics and ­compliance).

“We see this across every ­function: marketers using GenAI to personalise outreach, analysts using AI to simulate future ­scenarios, and engineers working with AI to rapidly prototype ­innovations. The emphasis will shift from hard skills alone to cross-functional fluency; blending AI literacy with domain expertise,” adds Choo.

In Malaysia, Choo says AI transformation can also be seen in areas like healthtech, smart manufacturing and agritech where roles in digital twin ­modelling and data privacy are gaining traction.

“The future is not about who gets replaced, but who gets reimagined. With the right ­support, that can and should include everyone,” he concludes.-- By ANGELIN YEOH

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Chronicling evolution of MyKad since 2001: MyKad – Shaping the future of Malaysia’s digital citizens

 

Badrul Hisham showing old identity cards on display at NRD.

rds on display at NRD.

With a single card, individuals can confirm their Malaysian citizenship and seamlessly handle daily tasks such as paying toll, using public transport and buying essentials.

Efficient and convenient – that’s how several users describe their experience using MyKad in daily life.

Some are even updating their MyKad to ensure they have access to the one-off RM100 cash aid given out by the government for the purchase of essentials from Aug 31 in conjunction with National Day.

The identity card of Malaysia’s first prime minister Tunku Abdul Rahman Putra Al-Haj on display at the NRD museum. (Right) Badrul Hisham showing old identity cards.

“I don’t need to carry multiple cards in my wallet.

“MyKad is enough,” said trader Roslina Daud, who uses it as an alternative Touch ‘n Go (TNG) payment method for tolls and parking fees.

Private sector worker Maisara Abdul, who uses public transport to commute to work, said the My50 pass integrated with MyKad was convenient as she no longer needed to carry multiple travel passes for different modes of transport.

Sumbangan Asas Rahmah (Sara) aid recipient Rohani Abdullah welcomed the use of MyKad as a payment method for basic necessities, saying it helps reduce the risk of loss or theft.

“With MyKad, Sara recipients like me do not need to queue at banks or automated teller machines (ATMs) to withdraw money.

“We can go directly to the supermarket, pick up essential items and pay using MyKad,” she said.

History of MyKad

MyKad, or Government Multipurpose Identity Card, was introduced in 2001.

New MyKad waiting to be collected at NRD Putrajaya. — Filepic

Its goal was to modernise the national identity system, enhance identity security and offer a digital platform that integrates multiple applications into a single card.

Commenting on MyKad’s evolution over more than two decades, National Registration Department (NRD) director-general Badrul Hisham Alias said four versions had been introduced, with the latest launched in 2012.

However, the department is now in the final phase of developing a new MyKad version with enhanced security features.

“The first version used plastic before being upgraded to Polikad 2.0, followed by the current version, which includes additional features like a ‘ghost image’ to improve security.

“Overall, MyKad underwent major changes in 2012 to keep up with technological developments, including design, security features and chip technology,” he said in an interview with Bernama.

Explaining the meaning behind the term “MyKad”, he said “My” referred to Malaysia, while “Kad” meant identification card – its main function being to identify all Malaysian citizens.

“MyKad is the continuation of the country’s identity document (ID) system, which started with paper cards (1948-1960), then blue plastic ID cards (1960-1990), followed by the hibiscus cards (high-quality IDs from 1990-2001) and now, the modern MyKad,” he said.

Although not fully digital, MyKad is designed to support various government transactions and services by integrating digital applications like driving licences, international passport information, basic health data and e-wallets.

“MyKad is widely used in Malaysia’s public healthcare sector, especially for managing medical records, vaccinations and access to public hospital services through identity verification.

The country’s ID system started with paper cards (1948-1960). — Photos: Bernama

“We have also collaborated with agencies like Inland Revenue Board (LHDN) and Employees Provident Fund (EPF) to improve the effectiveness of financial aid delivery,” he said.

Security features

On public concerns about MyKad’s security, especially if it becomes more widely used, Badrul Hisham said the latest card version contained a chip with built-in security features.

“This chip can only be read, written and recorded by NRD’s approved systems.

“While the chip is also used in other industries, its usage in MyKad is tightly controlled,” he explained.

Visible security features include the “ghost image” using laser engraving technology and enhanced smart chip capacity.

While chip card readers are widely available in the market, only NRD-approved devices can access MyKad data.

Badrul Hisham said data sharing with other agencies like LHDN, Road Transport Department (JPJ), police, Health Ministry and others was conducted securely under a “whole-of-government” approach.

While chip card readers are widely available in the market, only NRD-approved devices can access MyKad data. — Filepic

He noted that the MyKad chip was equipped with security keys to prevent unauthorised data access or misuse.

“MyKad data can only be accurately accessed using card readers programmed with specific command sets supplied by certified vendors.

“Fingerprint data is encrypted and requires matching keys for access.

“Any information update can only be done at NRD counters through a card replacement process,” he explained.

Badrul Hisham added that data sharing was regulated and must be approved by the NRD director-general.

“This sharing is only allowed for specific purposes, like improving public services, policy development or research – all while ensuring data confidentiality and security,” he said.

Regarding the risk of MyKad forgery or data cloning, he said the card was designed according to international standards and was very difficult to forge.

“Security features exist on multiple layers of the card, with some requiring special tools for verification.

“This makes MyKad, especially the chip, very hard to counterfeit,” he said.

Role in aid

Currently, MyKad is used to distribute financial aid such as Sumbangan Tunai Rahmah (STR), Sara and eKasih.

Sara, for example, involves 5.4 million recipients using aid from the Finance Ministry to purchase items from 14 categories at participating outlets.

On the perception that Sara funds are “loaded” into MyKad, Badrul Hisham clarified that no money was credited to the card itself.

Instead, recipients’ data is accessed through the store’s system during transactions.

“At participating stores, simply present your MyKad.

“Once your ID number is entered, your name will appear and you can shop based on your allocated aid amount,” he said, adding that the system also showed the remaining balance.

“For the RM100 Sara aid announced by Prime Minister Datuk Seri Anwar Ibrahim, recipients only need to present their MyKad to the cashier for identity verification,” he said.

Badrul Hisham stressed that the aid redemption could not be delegated to another individual.

“It is important to remember that MyKad cannot be held or used by others, including family members, in accordance with Regulation 25(1)(e) of the National Registration Regulations 1990,” he said.

Violators may face up to three years in prison, a fine of up to RM20,000, or both.

Badrul Hisham acknowledged that NRD’s initial goal to make MyKad a multi-purpose platform had yet to be fully realised, despite it being in place for 24 years.

Interest from government agencies in using MyKad as a core service delivery platform has also waned.

He said the latest MyKad version could support digital applications for payments, health records and banking, because of its increased chip capacity – 124KB or 128KB compared to the previous 84KB.

“But many agencies have stopped using MyKad in their systems – like JPJ.

“Otherwise, we would not need to carry a physical driver’s licence; MyKad would suffice.”

Physical vs digital

Commenting on MyDigital ID and MyKad, Badrul Hisham said the physical MyKad was governed by the National Registration Act 1959 and would remain relevant despite MyDigital ID implementation.

NRD is committed to ensuring MyKad remains a robust and relevant identity document, aligned with technological progress and public needs, he said.

In the future, he added, MyKad would not only serve as a physical ID, but also as a key to Malaysia’s digital ecosystem, integrating government, financial, healthcare and social services into one secure, efficient and accessible platform.

“Even in other countries with digital systems, physical ID cards still play a role.

“Our goal is to provide fully end-to-end services, including digital services.”

To support this, NRD is in the process of amending the National Registration Act to enable digital applications via MyKad.

Dr Umi Hamidaton Mohd Soffian Lee, a senior lecturer from the Economics and Muamalat Faculty at Universiti Sains Islam Malaysia (USIM) said MyKad remained crucial in the distribution of aid and subsidies.

“MyKad serves as an integrated database, enabling the government to identify target groups for aid distribution and targeted subsidies based on the profile contained in the MyKad, which includes information such as individual and household income, records of government aid received such as STR and Sara, and number of dependants,” she said.

Citing the example of implementing targeted subsidies for petrol, she said using MyKad was more efficient as the card’s security features could prevent duplication.

“However, if the government intends to implement targeted petrol subsidies via MyKad scanning in the future, it is advisable to first enhance information and digital technology infrastructure in rural areas,” she said.

Umi Hamidaton also recommended that the quality of MyKad continue to be improved, noting that incidents still occurred where the security chip could not be read and the card itself broke easily.

Blockchain enhancement

Blockchain technology can improve MyKad’s security and transparency by storing data in immutable digital ledgers, enabling full audit trails for each access and using cryptography for secure identity verification.

Dr Nor Alina Ismail, Data Science and Computing Faculty head at Universiti Malaysia Kelantan (UMK), said blockchain could ensure better data integrity through permanent records, cryptography and transparent verification across networks – making manipulation or hacking very difficult.

“Unlike centralised systems that are vulnerable to breaches and data loss, blockchain offers distributed storage and real-time audit trails, ideal for sensitive data like health records and digital identity if combined with strong privacy protection mechanisms,” she explained.

She said MyKad could be enhanced into a digital identity wallet through blockchain, integrating personal data like e-wallets, digital certificates, driving licences, health records and ID data securely in a single chain of identity.

She added that zero-knowledge proofs could allow verification of status – such as citizenship or age – without disclosing the full data, improving privacy.

The technology also enables cross-sector use (government, banking, healthcare, education and transport) through shared ledgers and automated smart contract verification.

“For instance, when applying for a bank loan, the bank can verify ID through NRD and employment status via EPF or LHDN without needing physical documents.

“This access can also be restricted via permissioned blockchain and logged for auditing, making processes more efficient and less prone to fraud while giving users full control,” she said.

However, for full implementation, a legal framework, stable digital infrastructure and strong privacy protection are required.

Anticipating that MyKad will evolve into a fully digital identity system within five to 10 years, Nor Alina said Malaysia could emulate countries like Estonia, which had a comprehensive digital identity system.

But, she acknowledged that building a blockchain-based MyKad system would require large government investment in technology, digital infrastructure upgrades, long-term maintenance and training.

“The main challenge is the high initial cost due to upgrading current systems, bridging the digital divide, enhancing existing laws, drafting new ones and developing a comprehensive cybersecurity policy,” she said.

“However, this transformation depends on the readiness of digital infrastructure, the legal framework, public technological literacy and data security assurance.

“Therefore, in this decade, we may see a hybrid approach, where MyKad exists in both physical and digital forms before fully transitioning to a blockchain-based digital identity once the nation’s technological and legal ecosystem is truly ready,” added Nor Alina.

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