Govt weighing buyout of passport supplier Datasonic, says parent firm

The Malaysian government is contemplating purchasing Datasonic Technologies Sdn Bhd, the company responsible for producing Malaysia's passports and national identity cards, according to NexG Berhad, the parent firm. NexG provided an estimated valuation of RM7.5 billion for Datasonic during a meeting with the finance ministry in July.

This preliminary valuation was based on an internal assessment by NexG's management and did not represent an independent valuation or a firm offer. The potential acquisition is still under consideration and will depend on further discussions and negotiations, as well as an independent valuation if deemed necessary.

Datasonic was recently awarded two six-year contracts in 2025 to supply Malaysia's passports and MyKad national identity cards, amounting to approximately RM2.5 billion until 2032. The government has also sought evaluations for two other scenarios: compensation if the government terminates the MyKad supply contract and an indicative price for acquiring a controlling stake in NexG.

NexG emphasized that Datasonic is the core business of the group and a potential disposal could significantly impact its operations, financial performance, and listing status. If the proposed deal goes ahead, NexG stated that it would take steps to comply with listing rules and applicable laws and regulations.