KUALA LUMPUR (May 26): Information and communications technology solution company NexG Bhd (KL:NEXG) said it is investing about RM250 million to develop a new high-security identity document production plant as part of its international expansion drive.
NexG, formerly known as Datasonic Group Bhd, said the new facility will be developed in three phases, and is expected to generate between US$100 million and US$200 million (RM421 million and RM842 million) in revenue per phase — depending on factors such as the type of documents produced, country-specific requirements, project scope and embedded document security levels.
“Once completed, the new facility is projected to add an additional estimated capacity of 50 million secure ID documents to NexG’s current production capacity, significantly enhancing the group’s ability to meet growing international demand for secure identity infrastructure,” the company said in a statement on Monday.
The RM250 million investment will be funded through a combination of internally generated funds, equity fundraising, strategic partnerships and borrowings, NexG said.
It added that the company has also established a new wholly-owned subsidiary, Datasonic Global Technologies Sdn Bhd, which will spearhead international commercialisation and strategic partnerships with foreign governments, system integrators and key industry stakeholders.
“We believe that by strengthening our production capabilities and creating a dedicated global platform, NexG will be well-positioned to bring Malaysian-developed secure identity technologies to more countries around the world,” said executive chairman and CEO Datuk Hanifah Noordin.
The investment will also drive digitalisation of NexG’s production systems, focusing on intellectual property and data-centric solutions to support what it describes as the “new security document paradigm”.
“We are focused not just on exporting technology, but on enabling digital sovereignty for countries that demand trusted, secure, and scalable identity infrastructure,” Hanifah added.
NexG has been the principal technology provider for Malaysia’s MyKad national ID project since 2012, and the supplier of e-passport solutions to the Malaysian government since 2016.
At market close on Monday, shares in NexG were unchanged at 36.5 sen, giving the company a market capitalisation of RM1.11 billion. Year to date, the stock has risen 30%.