The Ministry of Science, Technology and Innovation (MOSTI) has denied any leakages or irregularities in the implementation of the MyDigital ID initiative, following concerns raised in the Auditor-General’s (AG) Report 1/2026. The statement comes as a follow-up to earlier findings highlighting RM28.13 million in expenditure that did not align with committee approvals.
Speaking in the Dewan Rakyat, MOSTI minister Chang Lih Kang said the issues flagged were due to administrative confusion rather than failures in governance or procurement. He stressed that the project had been implemented transparently, with no evidence of fund misappropriation.
Governance Confusion
According to Chang, expenditure for the National Digital Identity Project (JKT IDN) had been presented to both the project’s steering and technical committees in February 2024. Both bodies had acknowledged the financial and implementation details prior to subsequent changes in oversight.
He explained that supervisory responsibility for the project was formally transferred in March 2024 to the National Security Council (MKN) under the Prime Minister’s Department. Following this transition, the project has been implemented under MKN’s supervision.
The minister acknowledged the AG’s findings of “weaknesses”, attributing them to governance confusion caused by overlapping committee roles and misalignment in decision-making processes. He added that these issues also led to gaps in documentation during certain stages of implementation.
Demand For Accountability And Clearer Financial Breakdown
Despite MOSTI’s clarification, members of Parliament continued to press for more transparency during the debate. Several questioned the actual allocation approved for the project, particularly in light of the RM28.13 million spent outside the steering committee’s decisions.
Datuk Seri Jalaluddin Alias (BN-Jelebu) called for a clearer explanation of the allocation and proposed that the National Audit Department audit MyDigital ID Sdn Bhd. Lawmakers also raised concerns over salary payments handled by MIMOS Berhad, noting that government operating expenditure records did not reflect allocations for staffing or operational costs.
Other MPs argued that the issue pointed to concerns involving compliance, financial governance, and internal controls, rather than a minor procedural lapse. In response, some lawmakers proposed stricter oversight measures for national strategic projects implemented through special-purpose vehicles. These include conducting full or forensic audits, as well as requiring periodic disclosures to Parliament on both financial and physical progress.
(Source: The Edge Malaysia [1] [2])
