New MyKad pitched as fix for subsidy leakages

KUALA LUMPUR: The new MyKad, developed by NexG Bhd, aims to tackle issues within Malaysia's subsidy system, claims the technology firm. The identity card integrates biometric QR verification with a potential digital eWallet, linking identity, authentication, and payments through a single credential. This system intends to minimize duplication and subsidy leakages by confirming eligibility against accurate identity data.

Nevertheless, the card's wider implementation in government agencies and the private sector relies on necessary approvals and technical integration. The MyKad, produced by NexG's subsidiary Datasonic Technologies Sdn Bhd, is expected to be held by over 24 million Malaysians, according to the company's statement.

The biometric QR feature enables a live facial image to be matched with biometric records, verifying the person holding the card as its legitimate owner. At present, the National Registration Department (NRD) is the sole government agency authorized to scan the QR code and perform biometric verification. However, with proper approvals and inter-agency arrangements, this capability could eventually be extended to other government agencies.

For commercial purposes, approved banks, telecommunications companies, and merchants could leverage the system for customer onboarding, know-your-customer (KYC) and compliance checks, eliminating the need to create their own verification infrastructure.

The biometric QR capability of the MyKad could also enhance MyDigital ID by offering an extra layer of identity verification, contingent upon technical integration and approvals. The eWallet component is being offered to the government free of charge, with optional use by citizens. The new MyKad aims to facilitate digital transactions and public services while maintaining its role as Malaysia's official identity credential.

The development aligns with the government's objective to expand the digital economy, targeting it to make up 30% of the country's gross domestic product by 2030.

NexG's involvement with the government began in 1999 through a MyKad-related contract, and the partnership has continued throughout the card's various iterations. Executive chairman Datuk Ishak Ismail stated that the company has served as a guardian of Malaysians' identities for 27 years. The MyKad signifies the latest extension of this role, transitioning from physical identification to digital identity verification and transactions.