Cybersecurity in Focus: Malaysia's Budget 2024 and the Fight Against Cyber Threats

Subang Jaya, 27 October 2023 - Malaysia's Budget 2024, recently unveiled by Prime Minister, Datuk Seri Anwar Ibrahim, has garnered attention as the government allocates a record-breaking RM393.8 billion to the national budget. This marks a notable increase of RM5.8 billion as compared to the previous year. The theme for this year's budget, aptly named "Madani Economy," highlights three core pillars: improving governance for service agility, bolstering the economy for sustainable growth, and enhancing the quality of life for the people. A crucial question lingers - what provisions are in place to strengthen the country's cybersecurity sector?

The Ministry of Communications and Digital (KKD) took a significant stride in this direction by securing an allocation of over RM2.84 billion under Budget 2024. These funds will be directed towards advancing digital connectivity initiatives, fostering the digital economy, enhancing cybersecurity measures, promoting national information marketing, and supporting local talent and creative projects. 

In comparison to the 2023 budget, this year's allocation reflects a continued commitment to cybersecurity. Last year, the budget reinforced initiatives to bolster the National Scam Response Centre (NSRC) and saw an increase of RM73 million in allocation to CyberSecurity Malaysia (CSM). These initiatives were intended to enhance public awareness and combat cybercrime, with a particular focus on thwarting fraudsters and scammers.

Nonetheless, the latest report from CSM revealed a concerning statistic - a total of 3,837 recorded cyber incidents had occured from January to August this year. These incidents consist of fraud (2,400), intrusion (396), content-related issues (378), and malicious code (359). Such statistics serve to underline the urgent need for solid cybersecurity systems, as Malaysians continue to fall victim to cyber threats.

To put these numbers into perspective, Bank Negara Malaysia's Financial Intelligence Unit (FIU) received approximately 250,000 suspicious transaction reports (STRs) in 2022 alone, marking a nearly 30 percent increase from the previous year. Similarly, the National Scam Response Centre (NSRC) had also received over 15,000 reports of scam cases which resulted in losses amounting to RM141 million since its launch in October 2022.

According to George Lee, Chief Executive Officer of Innov8tif Solutions Sdn. Bhd., the surge in cybercrimes can be attributed to cybercriminals exploiting vulnerabilities within the technologies that we use in our daily lives. He emphasises that technologies such as artificial intelligence (AI), are used by cybercriminals to hack passwords, leak information, and scam users, leading to data breaches and financial losses.

In light of the impending risks posed by cyber threats such as scams and identity theft, Malaysia has transitioned itself into an information-centric society that prioritises digital safety. This transition is most apparent within the education industry. The 2024 budget has allocated RM60 million in funding to CSM to develop a 5G Cyber Security Testing Framework and foster local expertise in 5G technology.

Datuk Amirudin Abdul Wahab, CEO of CSM, confirms that this allocation is reflective of the government's efforts to bolster the nation's defense against cyber threats. This investment aims to safeguard the nation’s vital infrastructure and information for national security, in addition to strengthening the sustainability of cybersecurity procedures.

Amirudin further states that this initiative will benefit more than 120 organisations, such as government bodies, industries, academic institutions, mobile service providers, along with 800 other cybersecurity professionals who receive training in 5G security testing services.

Despite governmental efforts, Lee emphasises that collective effort is a pre-requisite for creating a cyber-resilient society. Best practices would require holistic cyber hygiene, from implementing best cybersecurity practices to continuous learning, collaboration, and information sharing.

"Although the government is actively implementing solutions such as 5G security services, creating a cyber resilience society is not a one-way relationship. Up until today, we have not seen any initiatives that incentivise companies and institutions to enable anti-fraud preventive measures. This move would probably motivate local companies to push the agenda of assurance and compliance amongst the public," he adds.

In recent months, neighboring Southeast Asian countries like Thailand and Vietnam have rapidly accelerated their efforts to create smart cities and enhance government activities with smart technologies, through the use of AI. These efforts focus on educating the public on authentication and verification technologies through robust and legitimate systems. The ultimate goal is to foster the peoples’ trust in digital transactions.

Tan Sri Mohamad Salim Fatteh Din, Chairman of the Malaysian Communication and Multimedia Commission (MCMC), underlines the importance of her commission’s role in the National Scam Response Centre (NSRC) to create a knowledgeable society in the cyber world during a recent interview with Bernama.

As we anticipate the finalisation of the 2024 budget, it is important to prepare for the future of cybersecurity. The budget highlights the importance of reducing scam and fraud cases while also increasing the rate of digital transactions among the general populace. These efforts serve to demonstrate the nation's commitment to cybersecurity and digital resilience.

This article is provided by Innov8tif Sdn. Bhd.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.