Netizens query government on acquisition of supplier of international passports and MyKad

 

PUBLIC scrutiny has mounted after reports that the government is considering acquiring Datasonic Technologies.

Online commentators are questioning the rationale behind nationalising the existing passport and MyKad supplier rather than establishing a separate state-owned body.

Others said the government should let the contract expire before doing anything, while some also question the reasoning behind the deal, adding that they feel there is a hidden agenda.

A recent report stated that the government is considering buying the sole supplier of Malaysia’s international passports and MyKad.

The parent company, NexG provided an indicative valuation of RM7.5bil, which is over 6 times NexG’s RM1.23bil market capitalisation. This has prompted wild comments on social media.

One user asked others to read the clauses of the deal to know whether the authorities are doing the right thing or not.

Hoseh Lau: “Read the clause. It’s not the exclusive sole distributor. The government can have options to appoint another company if it’s deemed necessary. Hence, the whole fiasco is about sakau.”

A very interesting idea not practised in democracies for a very long time is nationalisation of enterprises.

Wind Cloud said: “Maybe the government under its national security policy just nationalised this company & paid the cost of setting up this company. No private company should hold the citizens’ data.”

A user advised the government to build the proper team, one that can handle the job, before taking over the company. This is in a bid to assure safe and continuous delivery of the documents.

For Taranvir Singh, this is a simple matter for the government if they start the preparation for 2032, “by slowly getting the right people, technology and facilities in place to take over. No need to waste money to buy; just wait for the contract to finish”.

But for Jin Chuan Mah, the whole idea of taking over the company is senseless because it becomes a story of the right hand giving and the left hand taking it back.

“Doesn’t make sense, the govt gives a contract worth billions, and the valuation is a multiplier of the profits earned for the contract. So the right hand gives and the left hand buys back at an inflated price, and someone takes a big chunk.”

Sentiment among netizens has coalesced into a clear pushback. Social media users broadly view the buy-back as hasty, with Facebook feedback leaning heavily against the transaction.

Battered by recent election defeats, the Madani administration needs a reality check. Instead of doubling down and inviting more backlash, the ruling elite should pull back and rethink their strategy. — Aug 22, 2026