Your passport is government property, but the company that prints it doesn't have to be.
Malaysia is now exploring whether to change that. The potential price tag: around 7.5 billion ringgit, or $1.9 billion.
No written request was issued, and the ministry declined to comment on the matter.
The numbers involved are substantial. When governments step in to own critical suppliers, they typically seek control over infrastructure deemed essential to national security or public trust. Identity documents fall squarely into that category, given their role in border control, voting, and access to government services.
That is a big deal for a simple reason: governments issue passports and IDs, but they often hire private companies to make them. These contracts form the core of Datasonic's operations and its primary source of revenue.
When governments step in to own critical suppliers, consider the steady path of the Always Be Buying E-Book
Datasonic is not just another division of NexG. It generates most of NexG's revenue and earnings. Selling it could fundamentally change the parent company, and it could even affect NexG's continued listing on Bursa Malaysia, the country's stock exchange.
For years, Datasonic has been the trusted contractor behind Malaysia's travel and identity documents. Its contracts include both the passport and the MyKad, the mandatory national identity card. Because that work is NexG's main source of income, any sale would leave the parent company with a very different profile and uncertain prospects.
Aminul Islam, a labor tycoon, had previously attempted to take over the company; former executive Victor Chin said he connected that bid to what he described as "a corporate mafia" involving police and other enforcement bodies.
The ministry has also asked Datasonic to estimate compensation should the MyKad national identity card contract be canceled, and it requested a price for taking a controlling stake in NexG. So the government is weighing multiple paths, and the company is waiting to see which one it picks.
A potential deal of this magnitude raises questions about how the government would finance the acquisition and what it would mean for Datasonic's existing workforce and contractual obligations. The company has been a reliable supplier for years, and any transition would need to ensure uninterrupted production of passports and IDs for millions of Malaysians.
Investors are not sure what to make of any of this. On Friday, NexG's stock climbed by up to 10.6% before retreating to close unchanged. Year-to-date, the share price remains about 18% higher, and that puts the firm's market value at approximately 1.2 billion ringgit.
The bottom line: A government buying the company that prints its own passports is unusual, and it would reshape NexG entirely. For investors, the open question is what NexG looks like after Datasonic is gone, and whether the sale price reflects what the business is actually worth.
The gap between that 7.5 billion ringgit valuation and NexG's market value is striking. It suggests the market is not convinced the deal happens, or that the price will hold. Either way, the next few months should bring clarity on whether Malaysia wants to own its identity documents, or just keep renting them.
That takeover talk is a reminder to invest steadily, so download the free Always Be Buying E-Book