Malaysia’s anti-corruption agency is incorporating blockchain and artificial intelligence (AI) to enhance efforts against corruption and fraud. The chief commissioner of the Malaysian Anti-Corruption Commission (MACC), Tan Sri Azam, emphasized the necessity for the government to adopt advanced technologies, as criminal activities are becoming increasingly sophisticated.
During the 3rd International Conference on Technology, Humanities, and Management in Fuvahmulah, Maldives, he highlighted challenges faced by regulators, particularly in tackling cryptocurrency-related fraud, cybercrime, and AI misuse. He pointed out that technological advancements, including AI and blockchain, could be instrumental in identifying fraudulent activities and financial discrepancies.
The Role of Blockchain in Transparency and Accountability
Blockchain technology is considered a valuable tool in preventing corruption within the public sector. The technology’s immutable transaction records prevent manipulation, while its transparent ledger enhances accountability. Additionally, smart contracts can automate public service operations, thereby minimizing opportunities for corrupt practices.
The Malaysian government has taken significant steps in recent years to encourage blockchain adoption. Recently, Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi disclosed that the government is exploring blockchain technology to enhance digital security. Additionally, Prime Minister Datuk Seri Anwar Ibrahim stated that Malaysia is working on blockchain and digital asset regulations in collaboration with the United Arab Emirates to gain insights from its expertise.
Blockchain Integration in Digital Identity Systems
Malaysia has incorporated blockchain into its digital identity framework, offering services through the MyDigital ID Superapp. This platform, which features a digital wallet, allows businesses to integrate their services while benefiting from a direct login feature. Built on the Malaysia Blockchain Infrastructure, a national blockchain network developed by MIMOS Berhad, the app aims to streamline digital service access while maintaining high standards of security and privacy.
The head of MYEG, a subsidiary of MIMOS, stated that the platform simplifies access to digital services while ensuring top-tier data security and privacy. Additionally, it allows businesses to discover new opportunities and optimize their digital operations.
The Intersection of AI and Blockchain for Secure Data Management
For AI systems to function effectively within legal and regulatory frameworks, they require an enterprise blockchain system that guarantees the quality and ownership of input data. This integration ensures that data remains secure while maintaining its immutability. By combining AI and blockchain, Malaysia aims to develop a more robust framework for data protection, reducing vulnerabilities to fraudulent activities and ensuring transparency in digital governance.