26-05-2025
- Business
- New Straits Times
NexG to build RM250mil secure ID facility to power global expansion
KUALA LUMPUR: NexG Bhd, formerly known as Datasonic Group Bhd, is developing a RM250 million secure identification (ID) document production facility as part of its global expansion strategy.
The Industry 4.0-ready plant will feature fully automated systems, artificial intelligence and extensive research and development (R&D) to enhance precision and scalability, the company said in a statement today.
The facility is expected to significantly boost the group's production capacity for secure identity documents, including e-passports and national ID cards.
The project will be carried out in three phases, with each phase expected to produce more than 15 million secure ID units annually.
When fully completed, the facility will raise NexG's total output capacity by 50 million units.
Revenue potential from each phase is estimated between US$100 million (RM422 million) and US$200 million (RM844 million), depending on the document type, client requirements and the level of security features embedded.
The expansion will be spearheaded by a newly incorporated subsidiary, Datasonic Global Technologies Sdn Bhd (DGT), which will focus on international markets and strategic partnerships with governments and system integrators.
"This marks a significant next step for NexG," said executive chairman and chief executive officer Datuk Hanifah Noordin.
"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."
NexG's technology underpins Malaysia's e-passport and MyKad systems, both of which have been recognised globally for their advanced security.
The company's e-passport, first issued in 1998, was the world's first biometric passport and is accepted by all 193 member states of the International Civil Aviation Organisation.
Funding for the RM250 million investment will come from internal funds, equity raising, strategic partnerships and borrowings.
The new facility is also expected to support future innovations in R&D and system integration.
According to SkyQuest Technology, the global e-passport market is projected to nearly triple from US$32.42 billion (RM136.78 billion) in 2023 to US$94.35 billion (RM398.06 billion) by 2032, driven by growing demand for biometric-based identity systems.
NexG said it aims to tap into this growth, particularly in Asean, Africa and other emerging regions.
