NSC blocks Datasonic takeover, vows to shield MyKad and passport identity under strict oversight

PUTRAJAYA, August 22 — The ruling government has opted against acquiring Datasonic Technologies Sdn Bhd (DTSB), a firm specializing in identity-related services, according to the National Security Council (MKN). A MKN spokesperson confirmed this stance following media reports about the proposed takeover. The council's primary concern is the safeguarding of the nation's identity, which they describe as a critical strategic asset.

This decision underscores the government's commitment to upholding the security and sovereignty of the country.

The MKN's response to the proposed acquisition outlines a multi-faceted regulatory framework, encompassing legal, financial, governance, and security dimensions. They have pledged to explore proactive and effective strategies to ensure the continued safety and sovereignty of the people's identity. These efforts must also offer the most value for every ringgit spent, emphasized the statement.

Furthermore, the MKN reiterated its dedication to supporting DTSB in improving services for the populace, ensuring both safety and reliability. The council's attention was particularly drawn to NexG Bhd's valuation of DTSB at around RM7.5 billion after receiving a government request for an indicative price for potential acquisition.

DTSB has been the exclusive supplier of Malaysian passports since 2012, adhering to International Civil Aviation Organisation (ICAO) standards. The company now also manages the development and supply of the new MyKad framework, MyTentera, and MyPOCA, with a long-term supply commitment.