This research study aimed to assess the adoption of digital signatures among governmental agencies in Malaysia and provide recommendations to improve its uptake. The research findings highlight the current status of digital signature adoption, identify the challenges governmental agencies face, and propose actionable recommendations to enhance its utilisation. The research employed a mixedmethods approach, combining surveys and open-ended questions with key stakeholders from various governmental agencies. The findings indicate that while there is a growing awareness of digital signatures, the overall adoption rate among governmental agencies remains relatively low. Several key challenges were identified, including limited knowledge and understanding of digital signatures, concerns about security and compatibility, and organisational resistance to change. 

Based on the research findings, the following recommendations are proposed to improve the adoption of digital signatures among governmental agencies in Malaysia, including awareness and training, simplifying the implementation process, enhancing security measures, forging close interagency collaboration, strong regulatory support, and engagement with stakeholders. By implementing these recommendations, governmental agencies in Malaysia can significantly enhance the adoption and utilisation of digital signatures. This will result in streamlined processes, improved efficiency, enhanced data security, and agency cost savings. Additionally, it will pave the way for a digital transformation journey in the government sector, aligning with the nation’s vision of a digital and connected Malaysia.

E-government refers to using the Internet to provide high-quality government services and activities and to enhance communication with citizens, organisations, processes, and systems. According to V. Kumar et al. (2007), it is a way of improving the delivery of government services to citizens, businesses, and community members by transforming how information is managed. The implementation of e-government can offer several advantages to government management, assist in narrowing the gap between the government and citizens, and engage citizens in decision-making or policy-making processes. In accordance with Maznorbalia and Awalluddin (2021), e-government is the application of information and communication technologies (ICTs) within the government to improve managerial efficiency, encourage democratic principles and mechanisms, and establish a regulatory framework that promotes information-based initiatives and fosters a society based on knowledge.

E-government also refers to the use of Internet and multimedia technologies to facilitate the exchange of information and transactions between government officials, citizens, and organisations in a more accurate, effective, and efficient manner (Lin et al., 2011). Although e-government initiatives are being implemented globally, developing countries are slower in embracing its implications and status compared to developed nations (Bwalya, 2009; Carter et al., 2016). The primary goal of e-government is to enhance government-citizen relationships, promote collaboration between governments, businesses, and citizens, and improve service delivery to the people of Malaysia (Shuib et al., 2019).

While Canada and the United States are considered the most successful developed nations in terms of e-government implementation (Lin et al., 2011), developing countries still face challenges due to their immature adoption status of e-government (Al-Hujran et al., 2015). Despite this, governments are making efforts to enhance their services and gain the trust of citizens who are increasingly aware of the Internet’s unique offerings (Carter et al., 2016). In Malaysia, e-government originated in 1996 with the Multimedia SuperCorridor (MSC) and is a priority under the Malaysian Vision 2020 to offer seamless online services to users, businesses, and the government (Shuib et al., 2019). The e-government flagship in Malaysia includes seven (7) pilot projects that are the core of e-government applications such as eP, PMS, e-Services, HRMIS, GOE, E-Syariah and ELX. Other government agencies have also implemented online services to increase efficiency and ease of public service, such as Public Services Portal (myGovernment), e-Tanah, e-Consent, e-Filing, e-Local government (e-PBT), e-Kehakiman, Custom Information System (SMK), Pensions Online Workflow Environment (POWER), and Training Information System (eSILA) (Maznorbalia & Awalluddin, 2021).

E-government simplifies bureaucracy, increases efficiency and transparency, improves information dissemination, and empowers citizens. Most countries have adopted e-government to develop their countries because it enhances service delivery, improves information flows, and increases accountability, transparency, citizen involvement, efficiency, and cost reduction Mohd et al., 2011). As part of e-government initiatives, public services have undergone digitalisation and paperless processes to cater to a broad range of services Gonzalez et al., 2020). 

In addition, electronic document sharing through the network has the advantage of reducing costs and speeding up searches, but traditional signatures and stamps are still necessary for verifying authenticity (Civelek et al., 2017; Makhsud, 2021). However, determining the legitimacy of electronic documents can be challenging because it is difficult to confirm the author’s identity and ensure that the document has not been altered. Manual processes are still needed, such as circulating the document for signing, inspecting paper documents, signing the document, and then digitising it (Makhsud, 2021). The objective of document authentication is to safeguard against criminal activity (Makhsud, 2021).

Digital signatures are often utilised in e-commerce transactions to guarantee message authenticity and integrity. Digital signatures provide benefits such as confidentiality, integrity, and authenticity for electronic data. Despite the technical security benefits provided by digital signatures, legal issues related to their usage have not been adequately addressed (Freaddy Busroh & Khairo, 2020). The creation of digital signatures involves using cryptographic technology to generate a sequence of letters that verifies the source and integrity of transmitted text (Zhang, 2010). Public and private keys are used to create digital signatures, while a public-key certificate is used to verify the signer’s identity. Digital signatures protect data from unauthorised access and manipulation by providing operations such as authentication, privacy, non-repudiation, and integrity (Aydın et al., 2018). The practice of creating digital signatures can be traced back to centuries-old cryptographic techniques used to secure information during communication (Sinha & Singh, 2003). A digital signature is created by encrypting a message using a secret key known as a “digital envelope,” which is then sent along with the encrypted message. Combining the digital signature and message digest allows a user to “digitally sign’’ a message. The purpose of digital signatures is to provide a unique characteristic to a message (Abidin et al., 2014). Digital signatures offer numerous advantages, such as faster transactions, reduced costs, increased security, official use, easy tracking, non-repudiation, fraud prevention, and time stamping (Aydın et al., 2018).

However, bureaucracy lacks an open culture of reform and a humanist service approach, resulting in several licences and signatures that must be done in person, causing a slow legality process (Lionardo & Nasirin, 2020). This issue poses a problem of trust. Despite several policies, the management services are not entirely digitised yet (Freaddy Busroh & Khairo, 2020). The success of e-government services is not solely dependent on government support but also on user adoption, which is currently low (Maznorbalia & Awalluddin, 2021). Developing countries often experience high failure rates in e-government projects, with less-than-expected outcomes. This is not just due to weak government policies, inadequate infrastructure, and political will but also due to citizens’ reluctance to adopt e-government services (Abdulkareem & Ramli, 2021).

The purpose of e-government implementation in Malaysia is to modernise and enhance public service delivery (Maznorbalia & Awalluddin, 2021). The development of e-government in Malaysia aims to improve government service delivery and information processes and involves all stakeholders (Shuib et al., 2019). While e-government is a crucial component of public service delivery, privacy, security, and technical maintenance issues need to be addressed to increase adoption. Numerous studies have explored the implementation and effectiveness of e-government services worldwide. According to Agbabiaka (2018), citizen feedback is essential to justify investments in e-government. It is also important to consider the role of citizens’ access to ICT in moderating the relationship between e-government use and performance. Aydın et al. (2018) investigated the factors influencing the adoption of digital signatures at Atatürk and Gümüşhane universities. Their findings showed that academic and administrative personnel had mixed reactions to the digital signature system, with some regarding it as an excellent idea and others seeing it as a bad one.

In a study by Freaddy Busroh and Khairo (2020), the adoption of digital signatures was analysed to enhance the investment climate in Indonesia, with the aim of facilitating investment development. Their results indicate that the implementation of digital signatures is expected to have a positive impact on investment-related regulations in Indonesia. The study used the normative juridical research method, which examines legal issues and proposes solutions through legislation in Indonesia. Quantitative research methods were employed by Lionardo and Nasirin (2020) to measure the impact of digital signature service quality on the performance of the District Government of Palembang, Indonesia. The findings indicate that digital signatures significantly enhance administrative services at the sub-district level, resulting in increased efficiency and improved public service. The study supports the efforts of the Central Government to revamp public services and improve organisational communication and administration.

According to Maznorbalia and Awalluddin (2021), citizens in Sintok display a favourable disposition towards e-government services, which is influenced by factors such as technology performance and social influence. The likelihood of e-government service adoption is higher when people perceive that it saves time and reduces costs. Social influence is also a significant factor in e-government adoption, as citizens are more inclined to use a system recommended by their friends or colleagues. Access to resources such as the Internet is crucial for e-government adoption, and citizens require appropriate skills and support to utilise information technology infrastructure. Shuib et al. (2019) examine factors influencing citizens’ adoption and satisfaction with e-government applications in Malaysia using an integrated model based on the Technology Acceptance Model and Diffusion of Innovation, as well as trust in the government, information quality, computer self-efficacy, and customer satisfaction constructs. Data was collected from 801 Malaysian urban poor citizens, revealing that compatibility, relative advantage, image, trust in the government, computer self-efficacy, and customer satisfaction have significant impacts on e-government application use and that customer satisfaction is positively influenced by use. The study highlights critical factors for enhancing adoption and satisfaction with e-government applications and indicates citizens prefer online government applications that are compatible with their preferred interactions and provide relative benefits.

Ayob et al. (2021) examined how information literacy moderates the effect of supply-demand factors on the effectiveness of e-government in Malaysia. A survey was conducted among 178 adults, and the results showed that social influence positively affects the frequency of use and perceived usefulness of government websites, while web security and political trust affect only one (1) of the two (2). Additionally, a weak relationship was found between information literacy and frequency of use. The study provides a comprehensive model of supply-demand factors on e-government effectiveness. Abdulkareem and Ramli (2021) conducted research in a developing country to assess the effectiveness of the DeLone and McLean IS success model. They explored the role of citizens’ access to ICT as a moderator in the relationship between actual e-government use, citizen satisfaction, and the public value of e-government. Their study utilised PLS-SEM for data analysis and demonstrated that citizens’ access to ICT is crucial for successful e-government services. The study provides theoretical and policy implications, emphasising the importance of improving e-services quality and bridging the digital divide gap to promote good governance.

Sun et al. (2013) identified various theories used to study technology adoption or use, including TAM, TRA, TPB, UTAUT, DOI, IS Success Model, and Task-Technology Fit. However, Alzahrani et al. (2017) and Rana et al. (2015) proposed that TAM is the most appropriate and commonly used model in e-government studies. For instance, Husin et al. (2017) adopted TAM to examine e-government use in Malaysia by comparing the developed prototype with the existing Malaysian e-government services.

Similarly, Warkentin et al. (2018) utilised TAM to survey undergraduate students’ perceptions of the iVoting system in three (3) large universities in the United States. However, Chen et al. (2002) and Karavasilis et al. (2010) have suggested that TAM could be combined with other adoption and diffusion theories to improve its explanatory and predictive power. Shuib et al. (2019) found in a review of 14 e-government adoption studies that ten studies used TAM alone, while four (4) combined TAM with DOI.

Studies on technology adoption have expanded beyond the traditional constructs of TAM and DOI to include additional factors such as trust, perceived quality, self-efficacy, and citizen satisfaction, as shown in various studies, including those by Shuib et al. (2019), Alzahrani et al. (2017), Carter et al. (2016), Liu et al. (2014), Lallmahomed et al. (2017), Shareef et al. (2011), and Hung et al. (2013). Several studies have also investigated e-government adoption in different countries, such as India (R. Kumar et al., 2018), Africa (Verkijika and De Wet, 2018), Israel (Rosenberg, 2019), and Jordan (Abu-Shanab, 2017). However, there is a significant gap in the literature regarding e-government adoption by citizens in Malaysia, which requires further research as citizens’ perceptions are essential to the success of e-government (Al-Hujran et al., 2015; Carter & Bélanger, 2005).

There are two (2) proposed research models for this study. One model has been proposed based on the Knowledge, Attitude and Practice (KAP) framework and another based on the Technology-Organisational-Environment (TOE) framework.

The KAP framework serves as the basis for the first research model, depicted in Figure 1.0. This model aims to assess the level of knowledge, attitude, and practice of digital signature use among the public and government sectors and the impact of these factors on awareness of digital signature adoption. Figure 1.0 illustrates the initial research model, which includes three (3) hypotheses related to the awareness of digital signature adoption among the public and government sectors:

•  H1: Knowledge has a positive relationship towards awareness of digital signature adoption
•  H2: Attitude has a positive relationship towards awareness of digital signature adoption
•  H3: Practice has a positive relationship towards awareness of digital signature adoption

The research methodology for this study has been divided into four (4) phases, as shown in Figure 3.0. The first phase of this study focuses on understanding digital signature technology based on the literature to formulate its important criteria. It also focuses on understanding the e-government initiatives, including the objectives, functions and implementations. Another important task in this phase is to study the KAP and TOE framework to properly develop the questionnaire construction used in Phase 2. Information gathered in Phase 1 has been used as input for instrument development in Phase 2. The instrument is used to measure awareness, feasibility, planning, implementation and impact of digital signature adoption amongst government and public sectors. It is also used to identify factors that influence digital signature adoption. Two (2) sets of survey questions have been developed to achieve Research Objectives 2, 3, and 4. Questionnaires presented to respondents consist of four (4) parts as below:

The questionnaires, which are included in Appendix A, were developed using the KAP and TOE frameworks.

In phase 2, a pilot study has been carried out as part of the data collection method. An email invitation has been sent out to potential respondents. These respondents consist of participants who attended the digital signature seminar conducted by MCMC and other respondents from various governmental agencies. The objective of the pilot study is to evaluate the questionnaire and finalise instruments from the KAP and TOE framework. Then the questionnaire was finalised to be distributed to respondents.

In phase 3, the collected data then be analysed in the third phase. This research uses two (2) sampling methods, purposeful sampling and snowball sampling, for data collection. In purposeful sampling implementation, a few government agencies have been identified and contacted to participate in this study. Email also had been sent to a list of participants who had attended previous digital signature seminars to answer questionnaires. Through snowball sampling, respondents who participated in this study have been requested to suggest other participants among government and public agencies. A total of 345 respondents from 22 ministries participated in this study.

The analysis has been done using mixed method analysis which quantitative questions in survey questions are analysed with statistical analysis, including mean, standard deviation and percentage. Meanwhile, open-ended questions are analysed with the inductive method. The data analysis phase in this study has been divided into a few tasks based on research objectives:

In this study, 345 replies from 22 Malaysian ministries were gathered. 54.2 per cent of responders are men, and 45.8 per cent are women. The respondents participated in the study voluntarily, comprising 5.5 per cent of top management, 46.1 per cent of middle management and 48.4 per cent of IT services. Approximately 2.6 per cent of respondents were between the ages of 19 and 29 years, while roughly 10.1 per cent were between 30 and 39. The majority, or 84.6 per cent, were aged 40 to 49. Less than three (3) per cent of the population was under 50. Most people have between 10 and 19 years of employment experience, while seven (7) per cent were between 20 and 29 years and less than 10 years, respectively. Less than one (1) per cent of people had experience spanning more than 30 years.

The distribution of respondents based on their involvement with the e-government initiative, was as follows: eP (2.3 per cent), PMS (0.9 per cent), eServices (1.4 per cent), HRMIS (3.2 per cent), GOE (76.8 per cent), E-Syariah (0.3 per cent), JobMalaysia (0.9 per cent), and none of the above (14.2 per cent).

An analysis was also conducted to gauge the respondents’ experience with digital signatures. The findings concluded that most respondents—199, or 57.7 per cent— selected sometimes, 67 (19.4 per cent) selected always, and 79, or 22.9 per cent, selected never.

This research aims to categorise the potential use cases of digital signatures for identified government and public sector users. This study shows that the usage of digital signatures can be expanded to various fields such as human resources, administration, finance, law, information technology, and audit. The most highly suggested fields are administration and finance.

In the administration field, most respondents suggest that digital signatures be used in any activity involving letter generation. Among the suggested letters are admission letters, acceptance letters, offer letters, consent letters, authorisation letters, invitation letters, and memos. In addition, digital signatures are also suggested to control the generation of government documents such as certificates, scrolls, licenses, birth certificates, Memorandums of Understanding (MoUs), and land titles to ensure faster and more secure government services. A few new administration applications have been suggested that might benefit from the adoption of digital signatures, such as a digital document management system, a commercial vehicle permit application, meeting invitations, and asset management. Another category of digital signature usage in the administration field is process approval, which includes the endorsement of documents, the approval of project or programme proposals, the approval of building plans, and the approval of permits. Digital signatures can also be applied in statement declarations such as statutory declarations and integrity declarations.

Meanwhile, in finance, digital signatures can be adopted in various areas, including financial process approval and financial document generation. Most respondents suggest the adoption of digital signatures in the preparation of agreements and contracts. They also suggest the adoption of digital signatures in financial form applications such as claim applications, overtime applications, and tender submissions. Digital signatures can also be used to prepare financial documents, including invoices, payment vouchers, bank statements, invoices, purchase orders, quotations, bills, and receipts. Financial process approval, such as for budgets, investments, loans, procurement, goods receipt, payment, and payroll, can also be done using digital signatures.

In addition, the respondents also suggested the adoption of digital signatures in the human resources field, especially in handling processes and documents. Human resources processes need to be transformed into digital applications and approval processes, especially for job applications, leave applications, work orders, attendance, and career development. Digital signatures can also be implemented in the production of certified information, such as staff service records.

Other than that, digital signatures can also be adopted in handling processes and documents in other specific areas such as information technology, law, and audit. Documents that require verification, such as user acceptance tests, final acceptance tests, technical reports, court cases, court orders, summonses, and audit reports, are highly recommended. It can also be adopted in several online applications, such as online data sharing and purchasing, weapon withdrawal permission, and system access. This shows tremendous areas that can be improved to provide more efficient and secure digital services to public and government agencies.

Table 1 presents the average scores of three (3) interrelated aspects of awareness, namely knowledge (7.79± 1.783), Attitude (8.10± 1.804), and Practice (7.94± 1.777). The mean score for Attitude is above eight (8) out of 10, while Knowledge and Practice have mean scores below eight (8) points. Typically, an average score of eight (8) to ten (10) indicates agreement with the statement represented by the dimension, while six (6) to eight (8) points indicate mostly agreement, three (3) to six (6) points mostly disagreement, and less than three (3) points indicate disagreement. In Table 2, the statistics for the awareness dimension are presented.

The average level of awareness among the respondents was 6.463 ± 2.3350. Table 2 provides a breakdown of the awareness dimension. The highest average score was associated with the presence of digital signatures (8.57 ± 1.821), followed by the resemblance of digital signatures (8.18 ± 2.099) and the likelihood of recommending digital signatures (8.03 ± 2.152). Ranking fourth and fifth were knowledge about the distinction between digital and electronic signatures (7.46 ± 2.434) and the cost of adopting digital signatures (6.74 ± 2.521). These two (2) aspects received mean scores below 8 out of 10 points, indicating the need to emphasise them to potential clients of digital signatures.

A deeper analysis has been done to study the relationship between the experience of using digital signatures with knowledge about the distinction between digital signatures and electronic signatures and the cost of adopting digital signatures. Table 3 shows the mean score for the analysis.

Based on the mean score, the difference between these two (2) items is related to their experience using digital signatures. Those who constantly use digital signatures obtain a high score on knowledge about the distinction between digital signatures and electronic signatures and the cost of adopting digital signatures. Meanwhile, those who sometimes used digital signatures got a high score for knowledge about the distinction between digital and electronic signatures but a lower score for the cost of adopting digital signatures. Finally, those who had never used digital signatures obtained low scores in both knowledge about the distinction between digital signatures and electronic signatures and the cost of adopting digital signatures. The significant difference among the three (3) groups is supported by a one-way analysis of variance (ANOVA) where both p-values are less than the significance level (0.05).

The primary focus of the third research objective (RO3) is to assess the extent of digital signature adoption and its feasibility, planning, implementation, and impact within the government and public sectors. Table 4 below tabulates the study’s findings.

40 per cent of the respondents are at a good level meanwhile, 23 per cent are at enough level of feasibility study on digital signature implementation. However, 37 per cent is still less or not feasible for digital signature implementation. However, utilisation varied, with a significant percentage sometimes using digital signatures. Additionally, there were varying timelines for implementing digital signatures, with 35.8 per cent of respondents currently implementing digital signatures. 11 per cent plan to implement digital signatures within a year, meanwhile 53.2 planning to do so in the further future.

Table 5 below contains information about different dimensions related to digital adoption and their corresponding mean scores, standard deviations (SD), ranks, and levels.

Overall, the dimensions with the highest mean scores and ranks are “Digital adoption” and “Relative advantage,” indicating that respondents perceive these aspects positively. On the other hand, “Pressure” received the lowest mean score, suggesting less perceived pressure for digital adoption. The simplicity, compatibility, security concerns, management support, and information security levels are relatively high.

The fourth objective of the research (RO4) is to determine the factors that facilitate or impede the adoption of digital signatures in the government and public sector. To achieve this objective, the study utilises two (2) frameworks: KAP and TOE. Linear regression enables us to measure and quantify the linear relationship or connection between the awareness of digital signatures and three (3) independent variables: Knowledge, Attitude, and Practice. Table 6 provides the Regression Analysis for the Awareness Model.

Knowledge and Practice variables had statistically significant predictive power for awareness of digital signature (R-square = 0.57, F-test = 153.638, p-value = 0.001). However, only knowledge was found to be significant in predicting awareness (p < .05), while Practice did not demonstrate significance. According to the TOE framework, the factors that facilitate or impede the adoption of digital signatures in the government and public sector can be categorised into three (3) main factors: technology, organisation, and environment.

Linear regression is employed to quantify the linear relationship between the adoption of digital signatures, and seven (7) sub-factors categorised under Technology (Simplicity, Relative Advantage, Compatibility, Security Concern), Organisation (Management Support, Information Security), and Environment (Pressure). These variables successfully predicted the adoption of Digital Signature, with an R-square value of 0.755, an F-test value of 152.068, and a p-value of 0.001. Among the seven (7) independent variables, four (4) demonstrated statistical significance in predicting the adoption of digital signatures (p < .05). The four (4) significant sub-factors encouraging the adoption of digital signatures are Relative Advantage, Compatibility, Security Concern, and Information Security Culture. Table 7 depicts the regression analysis for the digital signature adoption factor (RO4).

Among the technology factors, Relative Advantage, Compatibility, and Security Concerns were found to have a significant relationship with digital signature adoption. Among the organisation factors, only Information Security Culture showed a significant relationship. The pressure from the environment did not demonstrate a significant relationship. A detailed analysis has been done to study the view of respondents towards ease of use of digital signatures. Respondents who have experienced using digital signatures have been selected and 70 per cent of them agree, 25 per cent mostly agree while five (5) per cent disagree that digital signature is easy to use. Figure 7.0 shows the level of ease of use of digital signatures amongst experienced public and government sector users. This shows that digital signature is easy to use so the improvements of digital signature can be focused on other factors.

In the subsequent analysis, linear regression was employed to measure the linear relationship between the adoption of digital signatures and three (3) independent variables: Technology, Organisation, and Environment. These variables successfully predicted digital signature adoption with statistical significance (R-square = 0.745, F-test = 335.579, p-value = 0.001). Both Technology and Organisation demonstrated statistical significance in predicting the adoption of digital signature (p < 0.05) among the three (3) independent variables. However, the variable Environment did not exhibit statistical significance in this regard. Table 8 shows the regression analysis for technology, organisation and environment as digital signature adoption factors.

Based on the study’s findings, here are some recommendations for enhancing the awareness and adoption of digital signatures.

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