Datasonic scores extensions for Malaysian biometric passport supply contracts

Malaysia’s Ministry of Home Affairs (KDN) has extended a contract for Datasonic to supply the chips used in its biometric passports, polycarbonate biodata pages and passport booklets themselves by another year.

The chip deal adds 104.78 million Malaysian ringgits (approximately US$23.86 million) to the deal’s total value.

The original contract ran from 2016 to near the end of 2021, and had a value of RM318.75 million ($72.58 million). Three extensions covered a period through November 30, 2024. The total ceiling of the updated contract and all extensions is now RM616.71 million ($140.45 million).

The polycarbonate page deal will bring in up to RM 93.3 million ($21.24 million) for Datasonic, and the booklet deal RM57.15 million ($13 million), The Edge Malaysia reports. Those contracts were originally awarded in 2018 and 2016, respectively, and had a combined total value of RM494.09 million ($112.51 million). Like the passport chip contract, each has been extended multiple times, further raising the value.

Business Today notes that Datasonic also recently won a contract with KDN to maintain its Facial Live Capture (FLC) biometric image collection system. The company’s contracts for biometrics and border control also include the installation of 40 electronic gates with face biometrics at KLIA Terminals 1 and 2.

Malaysia’s RHB Investment Bank Bhd has told its clients in a report that Datasonic valuation is low and attractive to investors, according to The Star. That evaluation is based on Datasonic’s RM47.5 million ($10.8 million) in earnings for the first half of its fiscal 2025 year. The company realized higher average selling prices and met expectations for higher orders of i-Kad, Malaysia’s biometric residence permit and foreigner ID card.

The report came before the passport contract extensions, but did anticipate them. Datasonic’s deal to acquire a controlling stake in Innov8tif may be holding down the valuation, however.

Since then, Datasonic has issued a notice to shareholders of its intent to rebrand as NexG.

“The Proposed Change of Name is in line with the Company’s rebranding exercise to better reflect the Company’s updated corporate identity and purpose which is more aligned with the Company’s current core business and values, to improve the public’s confidence in the Company and to enhance stakeholder engagement,” the company states.

A shareholder vote on the proposed rebrand will be held on February 20, 2025.

Article Topics

biometric passport  |  biometrics  |  Datasonic  |  face biometrics  |  Malaysia  |  stocks  |  tender