Evolving Cyber Threats Test Financial Resilience, Underscore Need For Local Talent
By Harizah Hanim Mohamed
KUALA LUMPUR, Nov 5 (Bernama) -- Evolving cyber threats, particularly those involving artificial intelligence (AI), cloud technologies and interconnected digital ecosystems, underscore the need to develop more local professionals with expertise in both finance and cybersecurity.
Recent cyber incidents reported in France, the United Kingdom and elsewhere in Europe have also sparked concerns among Malaysians over the security of increasingly digitalised services and critical infrastructure.
Malaysia's National Cyber Security Agency (NACSA) has raised the National Cyber Security Threat Level (NCTL) from Low to Medium, according to the National Security Council (NSC) under the Prime Minister's Department.
Asia Pacific University of Technology & Innovation (APU) Malaysia School of Accounting and Finance senior lecturer Dr Nur Badriyah Mokhtar said developing local talent with expertise in both finance and cybersecurity was essential to strengthening the resilience of Malaysia's financial technology (FinTech) ecosystem.
While foreign expertise could help accelerate development, she said long-term resilience depended on having local specialists who understood Malaysia's regulatory, economic and technological landscape.
"Malaysia has made good progress through stronger regulations, cybersecurity frameworks and industry investments, but the biggest challenge is not just technology, but talent.
"We need more professionals who understand both finance and cybersecurity. Moving forward, stronger collaboration between regulators, industry and universities will be crucial to building a resilient and secure FinTech ecosystem," she told Bernama when contacted.
EVOLVING CYBER THREATS TEST FINANCIAL RESILIENCE
Prime Minister Datuk Seri Anwar Ibrahim told Parliament on Tuesday that the Chief Secretary to the Government would convene a meeting with relevant government departments, while the Bank Negara Malaysia Governor would hold a separate session with domestic financial institutions to assess potential risks and strengthen preparedness.
He said Malaysia could be among the potential targets due to its growing digital and data centre capabilities, while developments abroad had shown how cyber threats could affect national security, economic stability and strategic interests.
Nur Badriyah said digital transformation in the financial sector was a strategic necessity, with FinTech reshaping financial services through digital payments, digital banking and the application of AI, data analytics and blockchain technology.
Citing the Malaysia FinTech Report 2026, she said the country's FinTech ecosystem had expanded rapidly, with 379 companies operating across 14 categories. Digital payments represented the largest segment, with 85 companies, followed by e-wallets with 43.
In 2025, Malaysia recorded 18.4 billion electronic payment transactions, while 29 cross-border payment linkages were established to facilitate digital transactions between countries. All five licensed digital banks had also commenced full operations, each recording deposits exceeding RM1.6 billion.
According to a survey of 1,029 Malaysians aged 18 to 74, conducted in April 2026, e-wallet usage grew fastest among those aged 35 to 44, rising nine percentage points to 64 per cent last year, while adoption among those aged 45 and above increased to 44 per cent.
The broadening adoption across age groups further highlights the growth of Malaysia's FinTech ecosystem and the need to safeguard its expanding digital financial services.
LOCAL EXPERTISE KEY TO FINANCIAL CYBERSECURITY
Nur Badriyah said Malaysia had made encouraging progress in strengthening the security of its financial infrastructure, but cyber threats were evolving alongside technological advancements.
As more financial services moved online and became increasingly dependent on AI, cloud computing and data, the potential impact of a successful cyberattack had also grown.
She said financial institutions were generally more aware of cyber risks and had invested significantly in cybersecurity measures, but preparedness required continuous efforts.
"Cyber resilience depends not only on technology, but also on having the right people, governance and response capabilities in place when an incident occurs," said Nur Badriyah.
She stressed that Malaysia could not rely solely on external expertise to protect its critical financial infrastructure, despite the value of adopting global best practices and working with international technology providers.
"We need home-grown cybersecurity, AI and FinTech specialists who understand our local operating environment, regulatory requirements and emerging risks," said Nur Badriyah.
INDUSTRY-ACADEMIA TIES CRUCIAL TO DEVELOPING TALENT
Demand for talent in FinTech, AI, machine learning, data analytics and cybersecurity continued to rise alongside the growth of the digital economy. FinTech was no longer confined to startups or technology companies, as traditional financial institutions, including banks, insurance companies, fund managers and capital market institutions, were also undergoing rapid digital transformation.
This shift meant the financial sector increasingly needed professionals who could combine knowledge of finance and banking with technological expertise, particularly in data analytics, digital systems, automation and cybersecurity.
Nur Badriyah said higher education institutions needed to balance theory-based teaching with practical, industry-driven learning experiences to prepare graduates for changing industry requirements.
"Modules in finance, banking and accounting should also be enriched with elements of blockchain, Agentic AI, data analytics, intelligent automation and digital product development to ensure curricula remain relevant to industry needs," she said.
Higher education institutions in countries with mature FinTech ecosystems, such as the United Kingdom, Singapore and Australia, had integrated technical disciplines, systems development and data science into finance-related programmes.
Nur Badriyah said Malaysia needs to accelerate similar efforts by expanding programmes and specialisations in FinTech, AI, data analytics and digital technologies, while complementing conventional teaching with industry simulations, real-world case studies, project-based learning and application development.
Such approaches, alongside stronger industry collaborations, could strengthen students' critical thinking and problem-solving capabilities while improving their employability.
She said developing a sustainable pipeline of local talent capable of anticipating threats, developing solutions and strengthening digital resilience should receive the same priority as investments in digital infrastructure and technology.
The country's ability to produce graduates proficient in finance, data and technology would ultimately determine whether Malaysia remained a user of technology or emerged as a creator and exporter of financial innovation, said Nur Badriyah.
-- BERNAMA