NexG awarded RM733m contract to supply next-gen national identity cards

PETALING JAYA: NexG Bhd’s wholly owned subsidiary, Datasonic Technologies Sdn Bhd, has received and accepted a six-year contract from National Registration Department under the Ministry of Home Affairs for the supply of Malaysia’s national identity card solutions including MyKad, MyTentera and MyPOCA.

The contract, which will commence on June 1, 2026, carries a total value of about RM733 million. It follows the RM1.73 billion Malaysia international passport supply contract secured on Aug 29.

NexG, through its subsidiary, has been the provider of MyKad solutions since 1999, and the new contract reflects the government’s trust in the group to safeguard and modernise the nation’s identity infrastructure.

Under the new contract, the government will introduce a next-generation upgraded MyKad, representing a significant step forward in strengthening identity security and accelerating Malaysia’s digital transformation.

The upgraded MyKad is not just an identity card, but a secure national digital key and the foundation of Malaysia’s digital footprint. With enhanced durability and multi-layered security features, it is designed to resist forgery, protect against tampering, and ensure long-term reliability while enabling the rakyat to participate securely in the digital economy.

This infrastructure is expected to benefit Malaysians in meaningful ways, including access to tiered and targeted subsidies across fuel, food, transport, education and welfare; secure and transparent delivery of financial aid and welfare benefits, reducing the risk of fraud or leakage; the ability to perform digital transactions and biometric verification across banks, telcos, insurers and fintechs; easier access to government services digitally, such as renewals, permits and applications; seamless integration into healthcare, transport and smart city solutions, where one ID unlocks multiple essential services.

The next-generation upgraded MyKad will complement this initiative by providing Malaysians with a secure physical and digital foundation that aligns with the government’s broader vision for a secure, inclusive and future-ready digital ecosystem.

NexG executive chairman and group CEO Datuk Abu Hanifah Noordin said: “The award of the MyKad contract is not just another project for NexG – it is a national milestone. It reflects the government’s vision and commitment to provide Malaysians with a next-generation identity card that goes beyond identification. This new generation MyKad will be a secure and powerful tool for the rakyat, ensuring that financial aid, subsidies, and essential services are delivered fairly, transparently, and without leakage. By investing in this new generation MyKad, the government is strengthening national security while empowering every Malaysian to participate fully in the digital economy.”

“Coupled with the RM1.73 billion passport contract, the back-to-back award of these two national ID projects gives NexG long-term earnings visibility and stability for at least the next six years. More importantly, it provides the foundation for us to bring homegrown Malaysian innovation of global standards to the world. We are ready to expand into Asean and Africa, offering secure identity and digital trust solutions that showcase Malaysia’s capability to lead in mission-critical national infrastructure.”

Together, the RM2.4 billion in back-to-back passport and MyKad contracts provide NexG with a recession-proof foundation of recurring revenue, ensuring resilience through economic cycles and stable earnings visibility for the years ahead. This strong base enables NexG to invest confidently in innovation, expand its portfolio of secure identity and digital trust solutions, and create long-term value for stakeholders.

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