Publication: Malaysia Economic Monitor, October 2025: From Bytes to Benefits - Digital Transformation as a Catalyst for Public Sector Productivity
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2025-10-07
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2025-10-07
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GovTech - the special topic of this edition - has the potential to act as a critical lever for boosting public sector productivity and sustaining Malaysia’s transition to a digitally driven, high-income economy, which in turn will enable private sector growth and higher quality jobs for Malaysians. The country has committed significant financial resources to digitalization - investing billions in platforms such as MyGovCloud, MyDigital ID, and interoperable data systems - making it one of the region’s most ambitious GovTech reformers. However, international experience shows that investments in digital technology alone does not guarantee impact; without the adequate analogue complements - robust institutions, cross-government coordination, transparent data governance, and a digitally skilled workforce - digital investments risk fueling disillusionment rather than delivering productivity gains for governments and societies. The window for action is narrow as citizens’ expectations rise alongside escalating investments. Delays in strengthening the enabling environment could erode public trust and slow Malaysia’s digital momentum. Malaysia has already begun addressing these gaps through the creation of the Ministry of Digital, the Jabatan Digital Negara, and nationwide skills initiatives, yet challenges remain in integration, transparency, and uneven adoption across ministries and regions. To fully realize the digital dividends, Malaysia must move decisively to strengthen digital foundations, empower institutions, and put citizens at the center of reform - ensuring GovTech becomes a vehicle for efficiency, and a driver of trust, inclusion, and sustainable growth.
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“World Bank. 2025. Malaysia Economic Monitor, October 2025: From Bytes to Benefits - Digital Transformation as a Catalyst for Public Sector Productivity. © World Bank. http://hdl.handle.net/10986/43809 License: CC BY-NC 3.0 IGO.”
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