THE government has ruled out a proposed RM7.5 billion acquisition of Datasonic Technologies Sdn Bhd, the company that supplies the government with passports and national identity cards, amid continued scrutiny of the security and sovereignty of the country’s identity infrastructure.
The National Security Council said the government had decided against acquiring Datasonic Technologies, while continuing to examine appropriate measures to safeguard the “security and sovereignty” of citizens’ identities and ensure value for public spending.
The council announced the decision in a statement late on Friday.
Bloomberg reported on Sunday that the move came a day after Datasonic’s parent company, NexG Bhd, disclosed that the government had been considering a potential RM7.5 billion takeover of the company.
NexG said the Ministry of Finance had asked Datasonic at a meeting on July 24 to provide an indicative price for a possible acquisition.
The request was made verbally and no written document was issued, the company said.
The Finance Ministry had declined to comment when the proposed acquisition was disclosed on Friday.
Datasonic currently holds government contracts to supply passports and identity cards until 2032, with the agreements collectively valued at about RM2.46 billion.
The company is NexG’s core business and its main contributor to revenue and earnings.
NexG had placed an indicative value of about RM7.5 billion on Datasonic, while stressing that the figure was not based on an independent valuation.
The proposed acquisition emerged against the backdrop of a wider corporate dispute involving NexG.
Former executive Victor Chin recently identified Datasonic as the target of what he described as an “attempted hijacking” involving businessman Aminul Islam and a group he alleged was part of a wider corporate network.
NexG has warned that any disposal of Datasonic could have a significant impact on its operations and potentially affect its continued listing on Bursa Malaysia.
With Datasonic responsible for supplying critical national identity documents, the government’s decision is likely to keep attention focused on the security, control and commercial value of Malaysia’s identity infrastructure.
The National Security Council said the government would continue examining appropriate measures to protect citizens’ identity security and sovereignty while ensuring public funds are managed responsibly. - August 23, 2026
