Malaysia is embracing emerging technologies like Artificial Intelligence (AI) and blockchain to strengthen its fight against corruption. According to Azam Baki, chief commissioner of the Malaysian Anti-Corruption Commission (MACC), these tools enhance the agency’s ability to identify criminals involved in complex financial crimes. Last year, the MACC announced initiatives to address high-profile corruption cases that have been under scrutiny by local law enforcement since 2022. By integrating AI and blockchain into its investigative processes, the agency aims to improve detection and enforcement efforts in combating financial misconduct.

Baki reportedly discussed the initiative at an event in the Maldives last week. According to a report by The Edge Malaysia, Baki said that “blockchain technology ensures immutable transaction records, while AI enhances data analytics, enabling the detection of fraud patterns and financial irregularities,” explaining the reasons why these technologies are being used by Malaysia to slow down cases of corruption.

Malaysia has long struggled with rising corruption cases and has performed poorly in global perception surveys, according to the World Bank. However, the report also acknowledges the country’s gradual progress in strengthening anti-corruption measures, which are beginning to yield results.

In January last year, the MACC said that Malaysia’s rank on the Corruption Perceptions Index (CPI) 2023, saw an increase of four positions, from 61st to 57th — out of 180 countries. This improved its score from 47 to 50 on the CPI index. At the time, the MACC said it had ramped up investigations, arrests, and convictions in corruption-related cases.

Speaking in the Maldives, Baki stated that the MACC has intensified efforts to digitise Malaysia’s economy and reduce reliance on cash to curb corruption. The agency’s intelligence unit has integrated blockchain and AI into forensic and financial analysis to enhance threat and crime detection.

Malaysia’s interest in blockchain has grown significantly in recent years. As the foundation of Web3 technologies like cryptocurrency and the metaverse, blockchain offers a decentralised alternative to traditional Web2 servers, which are vulnerable to hacks, breaches, and data manipulation. By distributing information across a network, blockchain enhances data security against cyber threats. When combined with AI, it can help governments automate existing Web2 systems, reducing human errors and improving efficiency.

In January, Malaysia’s Deputy Prime Minister, Ahmad Zahid Hamidi, announced plans to integrate blockchain technology into the country’s fraud detection system. As Hamidi spoke at the Asia International Security Summit and Expo 2025, he reportedly elaborated on Malaysia’s plan to create a blockchain-powered ID verification system to make internal financial transactions more secure and transparent.

In order to safely explore this niche technology to improve its financial system, Malaysia has been in discussions with the UAE, a leader in Web3 adoption for governance and public services. In January, Malaysian Prime Minister Datuk Seri met with UAE officials and Binance representatives to explore blockchain and cryptocurrency initiatives. The country may soon begin drafting clear regulations to oversee its Web3 ecosystem.

The Malaysian Ministry of Science, Technology, and Innovation (MOSTI) has also prepared a National Blockchain Roadmap outlining the country’s blockchain adoption strategy through 2025. The plan highlights applications in asset tracking, document management, workflow automation, and other key areas.