Kuala lumpur: Eighteen banking institutions have confirmed participation in the Phase 2 Sandbox for the phased, orderly integration of MyDigital ID into the financial sector, in line with international best practices. The Phase 2 Sandbox is currently underway to test the new MyDigital ID technology, e-verification, which is the mechanism for verifying a user's identity when opening a new account and conducting secure real-time banking transactions. According to BERNAMA News Agency, the government, through MyDigital ID Sdn Bhd (MyDID) and Bank Negara Malaysia (BNM), is responsible for implementing MyDigital ID integration with security-by-design, privacy-preserving measures, and auditable governance to ensure a robust, trustworthy system ready for deployment. Ten of the 18 banking institutions are currently undergoing the integration process, while two banks have completed integration. The Ministry of Finance (MOF) announced in a written response posted on the Parliament's official website that this Phase 2 Sandbox is expected to conclude in March 2026 and be ready to enter a wider implementation phase, subject to the decisions and preparedness of the respective banking institutions. The MOF was responding to Aminolhuda Hassan (PH-Sri Gading) regarding the readiness of banks and financial providers for MyDigital ID integration in terms of security certification, personal data compliance, and audit standards. The MOF also stated that a total of 15 banking institutions participated in the Phase 1 Sandbox testing, which concluded in June 2025, with six successfully completing integration and eight conducting electronic Know Your Customer (e-KYC) tests. E-KYC is the process of verifying customer identities to prevent fraud. The MOF emphasised that the government, through BNM, must ensure all banks and financial service providers achieve a high level of readiness and security before the full integration of MyDigital ID can be implemented.