The real question behind Malaysia’s new MyKad

MALAYSIA’s decision to roll out a new-generation MyKad is understandable.

In an age of increasingly sophisticated cybercrime, identity fraud and document forgery, enhancing the security of the country’s most important identification document is a necessity.

What deserves closer scrutiny, however, is not the technology itself but the price tag attached to it.

The Home Ministry has revealed that the government will adopt a pay-per-issue model under which it pays RM40 for every new MyKad issued.

Based on an estimated three million cards annually, the exercise could cost taxpayers around RM120mil a year.

At first glance, the arrangement appears sensible. Unlike traditional procurement models that require governments to commit to large production volumes upfront, the pay-per-issue approach ensures payment is made only when a card is successfully issued.

This reduces wastage, avoids excess inventory and links expenditure directly to actual demand. In principle, it is a more accountable way of spending public funds.

But the disclosure immediately raises a bigger question: Is RM40 per card good value for money?

The government has not disclosed how much it paid under previous MyKad contracts, making it difficult to determine whether the new contract represents a reasonable increase or a cost escalation.

To be fair, modern identity cards are no longer simple pieces of plastic. They incorporate embedded chips, biometric capabilities, encryption technologies and anti-counterfeiting features that require continuous upgrading as security threats evolve.

The latest MyKad is said to feature enhanced safeguards against tampering and forgery, which could potentially save the government and financial institutions millions of ringgit in fraud-related losses over time.

But security improvements alone should not exempt a project from public scrutiny.

The six-year contract awarded to NexG Bhd is worth RM732.7mil, making it one of the larger technology-related government contracts in recent years.

Such projects inevitably attract questions about pricing, procurement competitiveness and whether the government is obtaining the best value.

The government deserves credit for resisting calls for a wholesale replacement exercise.

Existing MyKads remain valid, sparing Malaysians the inconvenience and cost of rushing to exchange their cards.

Still, as the rollout progresses, policymakers must provide greater clarity on the economics behind the programme. The issue is not whether Malaysia needs a more secure MyKad, but whether Malaysians are paying the right price for that security.