How Malaysia Can Realise the Promise of Digital Transformation

In a two part series, the Tech For Good Institute speaks with Dr Rachel Gong on digital transformation in Malaysia. In our first article, we examine the levers governments can use to drive progress in this area.

Dr Gong serves as Deputy Director of Research at the Khazanah Research Institute (KRI), and was the editor of KRI’s book on digital policy issues, “#NetworkedNation: Navigating Challenges, Realising Opportunities of Digital Transformation”. The KRI carries out research on the pressing needs of Malaysia, and is affiliated with Malaysia’s Khazanah Nasional Berhad sovereign wealth fund.

Catalysed by the pandemic, Southeast Asia continues its rapid digital transformation. The region has 75% of its population online, with 350 million ‘digital consumers’ – users who have purchased at least one online service.  In particular, the SEA-6 countries (comprising Singapore, Malaysia, Indonesia, Vietnam, Philippines, and Thailand) grew at a compounded annual growth rate of 27% from 2015 to 2020.

Malaysia, seeking to capitalise on its growing digital economy, has invested in digital technologies to modernise its processes. As a result, Malaysians are now amongst the most digitally connected in the world, according to the World Bank.

Yet this rapid evolution designed to enable access to the internet and close the digital divide has meant that “much of the initial focus was really about building infrastructure”, says Dr. Rachel Gong, who heads digital policy research at the Khazanah Research Institute (KRI). She notes that there are several policy issues Malaysia can focus on to drive a holistic approach to digitalisation and digital inclusion. 

Meaningful connectivity

Gong, in KRI’s recent publication #NetworkedNation, argues for an approach that also includes multidimensional aspects of meaningful connectivity.  Infrastructure and providing digital access is just the first step.  Moving forward, there should be conversations on social issues such as addressing “social inequality, rethinking social norms and behaviours, and thinking proactively about the societal implications of digitalisation, including education, healthcare, and social cohesion.”

Part of what will be needed are discussions on making internet access a public utility in Malaysia, providing subsidies for devices, and access to gender-disaggregated metrics to also examine the digital gender gap in the country. Furthermore, a digitally inclusive policy should include programmes that focus on the fundamental areas of digital literacy, digital skills, and digital services provision. 

Digital governance

Robust digital governance goes hand-in-hand with the broader picture of digital inclusion. Gong identifies data protection, security of critical infrastructure, and artificial intelligence (AI) governance as essential elements in Malaysia’s efforts in this area. 

On data protection, users in Malaysia expressed willingness to pay for a safer broadband connection. Furthermore, 60.9% of Malaysians consider online privacy to be “extremely important”. Gong highlights the need to balance between businesses having access to data to further innovation, and maintaining individuals’ right to privacy and security. Currently, the Personal Data Protection Act (PDPA) of 2010 governs the use of data in the country, but improvements are being sought including mandatory appointment of data protection officers and mandatory breach reporting guidelines

A second area of focus is the security of critical information infrastructure, such as the electricity grid, water supply systems, and healthcare systems, Gong notes. Such public infrastructure is increasingly connected to and reliant on digital technologies and consequently could come under attack, without the requisite protections. 

Finally, there should be a concerted effort for balanced governance of AI, especially with the rise of everyday algorithmic decision-making. “You’re relying on people who write the algorithms, and then you’re relying on the data that’s used to train the algorithms – and both of those are inherently biased.” The government’s 2021 AI Roadmap has articulated strategies to better understand such biases and remedy unintended consequences, helping to reduce discrimination against marginalised groups and the creation of insular filter bubbles.

Bottom-up approach for inclusion

For Malaysia’s digital transformation to be inclusive, Gong highlights the importance of understanding citizens’ needs. Consultations with a diverse set of stakeholders would help inform policy moving forward. Often, technology is not designed with the needs of marginalised groups in mind, and consequently, their experiences might differ from those in the mainstream. “In my opinion, we now have a lot of technical experts and industry experts at the table. But what we may need is more public interest, digital rights, human rights, or voices for marginalised groups being heard.” 

By taking a bottom-up, user-centric approach, governments will be able to better identify and address gaps to realise the promise of digital transformation.

Photo by Esmonde Yong on Unsplash

Download Agenda

Download Report

Latest Updates

Latest Updates​

Keep pace with the digital pulse of Southeast Asia!

Never miss an update or event!

Mouna Aouri

Programme Fellow

Mouna Aouri is an Institute Fellow at the Tech For Good Institute. As a social entrepreneur, impact investor, and engineer, her experience spans over two decades in the MENA region, South East Asia, and Japan. She is founder of Woomentum, a Singapore-based platform dedicated to supporting women entrepreneurs in APAC through skill development and access to growth capital through strategic collaborations with corporate entities, investors and government partners.

Dr Ming Tan

Founding Executive Director

Dr Ming Tan is founding Executive Director for the Tech for Good Institute, a non-profit founded to catalyse research and collaboration on social, economic and policy trends accelerated by the digital economy in Southeast Asia. She is concurrently a Senior Fellow at the Centre for Governance and Sustainability at the National University of Singapore and Advisor to the Founder of the COMO Group, a Singaporean portfolio of lifestyle companies operating in 15 countries worldwide.  Her research interests lie at the intersection of technology, business and society, including sustainability and innovation.


Ming was previously Managing Director of IPOS International, part of the Intellectual Property Office of Singapore, which supports Singapore’s future growth as a global innovation hub for intellectual property creation, commercialisation and management. Prior to joining the public sector, she was Head of Stewardship of the COMO Group and the founding Executive Director of COMO Foundation, a grantmaker focused on gender equity that has served over 47 million women and girls since 2003.


As a company director, she lends brand and strategic guidance to several companies within the COMO Group. Ming also serves as a Council Member of the Council for Board Diversity, on the boards of COMO Foundation and Singapore Network Information Centre (SGNIC), and on the Digital and Technology Advisory Panel for Esplanade–Theatres on the Bay, Singapore’s national performing arts centre.


In the non-profit, educational and government spheres, Ming is a director of COMO Foundation and Singapore Network Information Centre (SGNIC) and chairs the Asia Advisory board for Swiss hospitality business and management school EHL. She also serves on  the Council for Board Diversity and the Digital and Technology Advisory Panel for Esplanade–Theatres on the Bay, Singapore’s national performing arts centre.


Ming was educated in Singapore, the United States, and England. She obtained her bachelor’s and master’s degrees from Stanford University and her doctorate from Oxford.