Malaysia Rules Out Takeover of Passport and ID Card Supplier

The Malaysian government has officially ruled out acquiring Datasonic Sdn Bhd, the company responsible for producing the country's passports and national identity cards. The decision was confirmed by the National Security Council (NSC) in a statement on Saturday.

Last week, Datasonic's parent company, NexG Berhad, disclosed that the firm had been valued at 7.5 billion ringgit ($1.9 billion) following an internal assessment. This valuation came after the government requested an indicative price for a possible takeover.

In its statement, the NSC said it remains committed to ensuring that all parties involved continue to deliver "safe and trusted" services to the public. The council also noted that it is exploring proactive strategies to protect the safety and sovereignty of citizens' identities, while ensuring the best value for public spending.

NexG responded positively to the government's decision, thanking the authorities and reaffirming its commitment to maintaining high standards of security, integrity, and reliability. The company added that with the continuation of the raw identity card production contract, it can now proceed with its strategic expansion plans in both domestic and international markets.

Datasonic was awarded two six-year contracts last year to supply Malaysia's passports and MyKad identity cards, with a combined value of approximately 2.5 billion ringgit.