KUALA LUMPUR: There was no leak or loss of funds in the implementation of the MyDigital ID project, says Datuk Chang Lih Kang over issues flagged in the Auditor-General’s Report 1/2026.
The Science, Technology and Innovation (Mosti) Minister acknowledged that audit findings pointed to governance and procedural weaknesses involving project expenditure by MIMOS Bhd, the implementing agency for MyDigital ID.
He noted audit findings stating that RM28.13mil in expenditure did not receive approval from the designated committee, and acknowledged that the National Digital Identity (IDN) project must obtain endorsement from the mandated committee as stipulated in the letter dated Dec 12, 2023.
“The IDN project expenditure had been presented to both the IDN Steering Committee and Technical Committee in February 2024, where the spending was acknowledged.
“The project was subsequently placed under the supervision of the National Security Council (MKN) in March 2024.
“Among the factors contributing to the governance weakness was confusion arising from changes in the committee structure, which led to misalignment in decision-making processes during project implementation.
“However, Mosti stresses that there was no leakage in governance or procurement carried out,” said when winding up debates on the Auditor-General’s Report 1/2026 in the Dewan Rakyat on Tuesday (Feb 24).
Chang said MyDigital ID registrations have reached 9.7 million to date, and the system has been integrated with 92 government and private sector applications across telecommunications, finance and healthcare sectors.
On another audit finding involving RM14.09mil in operational expenditure charged to development allocation, Chang acknowledged that development funds should not have been used to cover operational costs under guidelines for projects under the 12th Malaysia Plan (RMK12).
He said MyDigital ID Sdn Bhd, then a subsidiary of MIMOS, had tabled the expenditure, including emoluments and asset procurement, at the IDN Technical Committee meeting on Sept 6, 2024, which was later confirmed at the committee meeting on Oct 25, 2024.
Chang added that MyDigital ID Sdn Bhd is currently applying for an operations allocation from the Finance Ministry to cover operational costs, including emoluments.
Addressing concerns over the procurement of Certification Authority (CA) equipment worth RM79,000, he said the audit remarks were related to procedural compliance and did not result in any financial loss.
“The equipment remains under MyDigital ID’s ownership at MIMOS and is being used by several ministries. There is no risk of our data being managed by another company,” he said.
To strengthen oversight, he said the ministry will ensure MIMOS fully complies with approved cost structures and governance mechanisms, with all future expenditures subject to proper approval procedures.
