MYEG and MyDigital ID Solutions Partner to Establish Blockchain-Based National Digital Identity Ecosystem in Malaysia

The initiative, known as the MyDigital ID Superapp, aims to enhance security and combat online fraud.

Digital services provider MYEG has joined forces with MyDigital ID Solutions to establish a blockchain-based national digital identity ecosystem in Malaysia. This initiative, known as the MyDigital ID Superapp, is set to enhance security and streamline digital identity integration for businesses.

MYEG's wholly-owned subsidiary, MYEG Alternative Payment Services, is involved in this collaboration, which aligns with both organizations' commitment to advancing Malaysia's digital infrastructure through technological innovations. The partnership will offer an integrated, scalable, and secure digital identity management solution for commercial service providers, as stated in an official announcement.

The MyDigital ID Superapp, built on the Malaysia Blockchain Infrastructure, provides various functionalities. This includes an e-wallet, news broadcasting, and an open innovation software development environment for businesses and service providers to integrate MyDigital ID seamlessly.

This initiative complements growing regional efforts to establish blockchain-based digital identity verification systems. Thought leaders and policymakers at China-ASEAN ministerial events have highlighted the need for interoperable digital standards to enhance online security and reduce fraud.

MYEG's Layer 1 public blockchain network, Zetrix, plays a significant role in this initiative. It supports not only MyDigital ID but also digital identities for Chinese nationals, business entities, and the World ID network.

The MyDigital ID Superapp presents a wide range of opportunities for businesses and service providers. Companies can utilize the national MyDigital ID for seamless identity verification, allowing users to log in directly to existing mobile applications or access services as mini-apps within the Superapp. This streamlined authentication process reduces operational costs, enhances customer experiences, and simplifies onboarding procedures.

A key aspect of the Superapp is its strong emphasis on data security. The platform does not store or access any personal data, serving only as an intermediary for secure transactions. All data interactions occur directly between users and service providers, ensuring compliance with privacy regulations.

This collaboration brings together expertise in electronic payments, cybersecurity, authentication, and certification, ensuring a secure and flexible system tailored to the evolving needs of Malaysia's digital economy.

The urgency of implementing such a platform is underscored by the rising number of scams in Malaysia. The recent State of Scam Report 2024 revealed financial losses amounting to MYR54.02 billion ($12.8 billion) over the past year, representing approximately 3% of the country's GDP.

Broader Southeast Asia also experienced significant cybercrime-related losses, with up to $37 billion stolen in 2023, largely due to the rise of AI-driven fraud.

By integrating blockchain and artificial intelligence with Malaysia's National Digital ID initiative, this partnership aims to enhance interoperability and provide stronger security measures for individuals and businesses involved in domestic and cross-border transactions.

Both MYEG and MYIDSSB plan to implement the MyDigital ID Superapp through a phased approach to ensure a smooth rollout. The proof of concept and initial development phase are expected to be completed by the first quarter of 2025, with scalability and future readiness as key priorities.

MYEG representatives highlighted that this collaboration marks a significant milestone in advancing Malaysia's digital landscape and reinforcing the need for interoperable national digital IDs. The initiative is expected to drive greater efficiency in identity verification processes and contribute to the country's broader digital transformation goals.

In addition to this initiative, MYEG has also partnered with East Logistics, an entity owned by China's General Administration of Customs (GACC), to establish a National Single Window Trade Platform for ASEAN countries. This move is expected to further enhance regional trade facilitation and cross-border transactions by leveraging advanced digital infrastructure.