NexG wins six-year contract to upgrade Malaysia’s national ID card

NextG’s wholly owned subsidiary Datasonic will modernize Malysia’s national ID card infrastructure in a six-year contract worth around 733 million Malaysian Ringgit, approximately US$173 million.

Per an announcement from the company, the deal includes biometric ID card production which will kick off in June next year, in continuation of the services it has provided for the MyKad ID since 1999.

The ID infrastructure contract for NextG comes not long after the firm was also awarded a biometric passport contract extension by the Malaysian government worth RM 1.73 billion (US$410 million). Both deals sum up to RM2.4 billion (US$569 million).

The new ID contract, which also includes providing software for MyTentera and MyPOCA, seeks to upgrade the MyKad ID infrastructure with the aim of securing the country’s identity and advancing its digital transformation.

The redesigned MyKad ID will facilitate service delivery through streamlined identity verification and digital KYC.

According to NexG, the new ID card will be designed with enhanced “durability and multi-layered security features,” and made in a way to “resist forgery, protect against tampering, and ensure long-term reliability.”

Once the MyKad identity infrastructure is upgraded, it will bring several benefits to Malaysians including access to tiered and targeted subsidies across fuel, food, transport, education, and welfare; easier digital access to government services like renewals, permits, and applications; biometric verification for banking, telecoms, insurance and fintech services; secure and transparent distribution of financial aid and welfare benefits, and seamless integration into healthcare, transport, and smart city solutions.

NexG’s Executive Chairman and Group CEO, Datuk Hj Abu Hanifah Noordin, commented that the contract is a national milestone and supports the government’s desire to provide citizens with a tool that serves more than just identification.

“This new generation MyKad will be a secure and powerful tool for the rakyat, ensuring that financial aid, subsidies, and essential services are delivered fairly, transparently, and without leakage,” Noordin said.

“By investing in this new generation MyKad, the Government is strengthening national security while empowering every Malaysian to participate fully in the digital economy.”

Noordin remarked that “the back-to-back award of these two national ID projects gives NexG long-term earnings visibility and stability for at least the next six years.”

“More importantly, it provides the foundation for us to bring homegrown Malaysian innovation of global standards to the world. We are ready to expand into ASEAN and Africa, offering secure identity and digital trust solutions that showcase Malaysia’s capability to lead in mission-critical national infrastructure.”

NextG says the two contracts are a sure source of recurring revenue which will enable it continue its investments in innovation and strengthen its market resilience.

MyDigital ID to be pre-installed on HONOR smartphones

As part of efforts to expand Malaysia’s digital ID, the government has signed a Memorandum of Understanding 9MoU) with HONOR to have the digital ID app pre-installed on its smartphone.

The Star reports that the move is meant to boost the MyDigital ID adoption and contribute to the country’s digital inclusion and transformation push.

“HONOR is proud to be the first smartphone brand to support the Malaysian government initiative, reinforcing our commitment to co-creating a value-sharing ecosystem through open collaboration and redefining human-to-device interactions,” the outlet quotes HONOR South Pacific president Justin Li as saying after signing the MoU.

The pre-installation will begin with the HONOR X9d 5G, the partners say, and users can have their biometrics enrolled on-the-go for easy access to services.

In August, the Director General of the National Registration Department said plans for the MyKad upgrade had been finalized. At the time, he also explained the difference the physical ID and the MyDigital ID, which is an online ID to which the government intends to enroll 13 million citizens before this year runs out.

World Bank hails Malaysia’s digital transformation

The World Bank in a recent report has also hailed Malaysia’s digital transformation strides, as reflected in investments in digital government systems and the MyDigital ID initiative.

In the report titled “From Bytes to Benefits: Digital Transformation as a Catalyst for Public Sector Productivity,” the Bank believes the country is “setting an example for the region on how GovTech can drive productivity and build trust between citizens and government.”

“The World Bank is committed to supporting Malaysia in its journey to enhance government efficiency, which will enable private sector growth and higher quality jobs for Malaysians,” said Zafer Mustafaoğlu, World Bank Division Director for the Philippines, Malaysia and Brunei, as quoted in a news release.

Article Topics

digital ID  |  identity document  |  Malaysia  |  MyDigital ID  |  MyKad  |  national ID  |  NexG Bhd  |  World Bank