World Bank: Digital Transformation Key To Boosting Public Sector Productivity

World Bank

KUALA LUMPUR, Oct. 3, 2025-Malaysia is leveraging GovTech to deliver faster, more trusted public services - a digital transformation the World Bank says is central to enabling private sector growth and high-quality jobs - accelerating the country's high-income growth trajectory.

The World Bank's new report, "From Bytes to Benefits: Digital Transformation as a Catalyst for Public Sector Productivity", credits Malaysia's substantial investments in GovTech - digital infrastructure such as MyGovCloud and MyDigital ID - with positioning the country as a regional leader in digital government maturity and connectivity.

The analysis is further informed by the largest survey ever conducted in Malaysia on digital skills, human resource management practices, and digital experiences of its civil servants - providing first-hand systematic assessment on the public service readiness for digital transformation.

"Malaysia is setting an example for the region on how GovTech can drive productivity and build trust between citizens and government. The World Bank is committed to supporting Malaysia in its journey to enhance government efficiency, which will enable private sector growth and higher quality jobs for Malaysians," said Zafer Mustafaoğlu, World Bank Division Director for the Philippines, Malaysia and Brunei.

This focus on digital transformation comes as Malaysia's economy shows resilience amid global headwinds. While domestic demand remains strong, external risks weigh on exports - making reforms such as GovTech critical to boost productivity and sustain the country's high-income ambitions.

"Digitalization will play a pivotal role in enhancing the efficiency of our public institutions, improving the accessibility and delivery of government services and unlocking new avenues for economic productivity and innovation. In cognizance, the Thirteenth Malaysia Plan sets forth comprehensive strategies to advance Artificial Intelligence (AI), strengthens Government Technology (GovTech) and establishes secure-by-design digital systems that are efficient, transparent and centred on the needs of the rakyat. The intent is clear. The Government is working to ensure that no Malaysian is left behind in this digital journey," said YB Senator Datuk Seri Amir Hamzah Azizan, Malaysia's Minister of Economy.

The report concludes that Malaysia is well-positioned to lead the region in GovTech-driven productivity, and recommends sustaining reforms across the following areas: 1) Platforms: Build robust digital foundations to unlock efficiency at scale, 2) Policies: Enforce clear rules and accountability to turn technology into impact, 3) People: Cultivate and retain a digitally-capable workforce, and 4) Participation: Enhance user-centric service delivery to drive real productivity gains.

"Malaysia's digital journey is about adopting new technologies and creating a government that is inclusive, responsive, and trusted. With platforms like MyGovCloud and MyDigital ID, and new institutions to drive digital reforms, we are laying the groundwork for citizen-centered services. The next priority is to strengthen digital skills, modernize data policies, enforce regulations and expand participation so that every Malaysian feels the benefits of digital transformation in their daily lives," said Malaysia's Minister of Digital YB Gobind Singh Deo.

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