PUTRAJAYA: The government will not acquire Datasonic Technologies Sdn Bhd (DTSB), the primary provider of national identity documentation services, the National Security Council (NSC) confirmed.
In a statement yesterday, the council said the decision followed media reports on the proposed acquisition of the company.
“Regarding media reports on the proposed acquisition of Datasonic Technologies, which provides citizen identity services, the Madani government has decided not to acquire DTSB,” it said.
The council emphasised that Malaysian citizen identity data is a strategic national asset, making security and national sovereignty top priorities, Bernama reported.
According to the council, efforts to regulate the matter were carried out through a framework encompassing legal, financial, governance and security aspects.
At the same time, the council said the government would continue to explore and assess proactive and effective strategies to ensure the security and sovereignty of Malaysians’ identities were safeguarded.
“These strategies must also provide the best value for every ringgit spent,” it said.
The council added that the government remained committed to ensuring all parties involved continued to improve services to the people so that they remained safe and reliable.
On Thursday, NexG Bhd was reported to have valued its wholly-owned subsidiary DTSB at about RM7.5bil after receiving a government request to submit an indicative price for a possible acquisition of the company.
NexG reportedly said the Finance Ministry had asked DTSB to provide an assessment of three potential scenarios at a meeting, namely the compensation that might be payable in the event of termination of the MyKad supply contract between the Home Ministry and DTSB.
The other scenarios were the indicative price for a possible acquisition of DTSB and the indicative price for the possible acquisition of a controlling block of shares in NexG, the holding company of DTSB.
DTSB is the main contributor to NexG’s revenue and earnings, and its disposal would effectively leave the listed group without a core operating business, NexG was previously reported to have said in a statement.
The company said DTSB was a growing business that it had built over many years, with its future regional and international expansion hinging significantly on the subsidiary.
“The disposal of this business effectively means NexG will no longer have a core business,” the group said, describing DTSB as its “crown jewel”.
DTSB provides MyKad and has, since 2012, been the vendor of Malaysian passports that comply with International Civil Aviation Organisation standards.
DTSB also holds the mandate for the new MyKad structure, MyTentera and MyPOCA, with supply commitments extending for several years.
