The Malaysian government, under the Madani administration, announced on August 22 that it would not acquire Datasonic Technologies Sdn Bhd (DTSB), the company providing citizen identity services such as MyKad and Malaysian passports [1, 2, 3, 4].
Datasonic Technologies has supplied the MyKad identity card since its inception and has held the vendor contract for Malaysian passports compliant with International Civil Aviation Organisation (ICAO) standards since 2012 [1, 3, 4]. The company also holds the mandate for new MyKad structures including MyTentera and MyPOCA, with supply contracts extending for several years [1, 3, 4].
On August 20, NexG Bhd, Datasonic's wholly owned parent company, internally valued its subsidiary Datasonic Technologies at approximately RM7.5 billion after the government requested an indicative acquisition price [1, 2, 3, 4].
As of July 2026, NexG holds contracts worth RM1.73 billion to supply passport booklets and polycarbonate biodata pages to the Immigration Department from June 1, 2026, to May 31, 2032 [2]. Additionally, NexG holds a RM732.72 million contract through DTSB to supply raw cards and consumables to the National Registration Department for the same contract period [2].
The National Security Council (MKN/NSC) stressed that the identity of the people is one of Malaysia’s most important strategic assets. It said, "The identity of the people is one of the country's most important strategic assets. Therefore, the government always gives the highest priority to the security and sovereignty of the people's identity" [2].
Government efforts to regulate Datasonic and related identity matters continue to encompass comprehensive legal, financial, governance, and security frameworks to safeguard these interests [1, 2, 3, 4]. The NSC added, "These strategies must also provide the best value for every ringgit spent" [1].
The decision not to acquire Datasonic follows careful considerations of these factors, including financial and security priorities.
The government will continue exploring proactive and effective strategies to ensure the safety and sovereignty of citizens’ identities while maintaining efficient use of public funds [1, 2, 3, 4].
