Malaysia Could Spend RM7.5 Billion to Take Control of Its Passport and MyKad Supplier — But What Happens Next?

KUALA LUMPUR — Malaysia’s government is exploring a potential takeover of Datasonic Technologies Sdn Bhd, the company at the heart of the country’s passport and national identity-card supply chain, in a move that could reshape how some of Malaysia’s most sensitive identity documents are produced.

Datasonic’s parent company, NexG Bhd, said the government has asked it to provide an indicative price for a possible acquisition of the wholly owned subsidiary. NexG’s preliminary internal assessment put Datasonic’s value at approximately RM7.5 billion (US$1.86 billion).

But the figure is not an agreed sale price.

NexG stressed that the RM7.5 billion estimate was based on its own management assessment and was not an independent valuation, agreed transaction value or firm offer. Any potential deal would still require further negotiations and, where appropriate, an independent valuation.

Malaysia’s Finance Ministry has declined to comment on the proposed acquisition.

Why Datasonic Matters

The potential takeover is significant because Datasonic is deeply involved in Malaysia’s identity-document infrastructure.

The company supplies Malaysia’s international passports and MyKad, the country’s national identity card, while also handling other government security-document and identity-related contracts.

According to a parliamentary reply reported by The Edge Malaysia, Datasonic currently has approximately RM2.74 billion in active contracts with the Home Ministry.

Those contracts include passport supplies, MyKad and other identity cards, maintenance of the National Registration Department’s card-production centre, security documents and foreign-worker identity cards.

The largest of those agreements is a RM1.73 billion passport contract covering supplies to Malaysia’s Immigration Department from June 1, 2026, through May 31, 2032. A separate RM732.72 million contract covers MyKad, MyTentera and MyPoCA cards and related consumables over the same six-year period.

Government Is Considering More Than One Option

The proposed buyout is not the only scenario being examined.

NexG said the government also requested assessments covering:

• potential compensation if the government terminates Datasonic’s MyKad supply contract; and
• an indicative price for a possible acquisition of a controlling stake in NexG itself.

That means the discussions could extend beyond simply purchasing Datasonic and potentially affect the structure of NexG, the listed parent company.

NexG has warned investors that Datasonic represents the core business of the group. A disposal could therefore have a material impact on NexG’s operations, financial performance and even its listing status.

A Major Shift After Years of Government Contracts

Datasonic’s relationship with the Malaysian government is not new.

The company has been a passport-solutions provider since 2016 and has also described itself as the sole MyKad provider to the National Registration Department since 2012. Its business includes passport chips, passport documents and polycarbonate biodata pages used in Malaysia’s passport system.

Its latest major passport deal was awarded in 2025, when Datasonic Technologies secured a six-year contract worth up to RM1.73 billion, running from June 2026 to May 2032. The agreement is structured on a pay-per-use basis, meaning the eventual value depends on actual passport issuance volumes.

The company’s growing importance has also attracted scrutiny in the past because of the scale and nature of its government contracts. Datasonic has previously defended its procurement record, saying relevant contracts were awarded following evaluation and required government processes.

What Happens Next?

For now, there is no takeover deal to announce.

NexG says discussions and negotiations would have to continue, while an independent valuation could be required. The government has not publicly confirmed that it has decided to proceed with the acquisition.

If a transaction does move forward, however, it could become one of the more consequential changes to Malaysia’s identity-document infrastructure in years.

The reason is simple: Datasonic does not merely supply an ordinary commercial product. Its operations sit directly within the ecosystem responsible for producing passports, MyKad and other government-issued identity and security documents.

A government acquisition could therefore give the state greater direct control over a strategically sensitive part of Malaysia’s national identity infrastructure — while potentially transforming the future of NexG and its shareholders.

For now, RM7.5 billion is only an indicative valuation. The bigger question is whether Malaysia is preparing to bring its passport and identity-card supply chain directly under government control.