Datasonic Group Berhad 28 Management Discussion & Analysis as we play our part in our country’s national security. On the manufacturing side, we are closely managing our supply of raw materials to avoid any disruptions, and we are constantly engaging with our clients on the delivery and schedule planning. Imminent Rebound in Orders for MyKad and Consumables The orders for MyKad were adversely affected by the movement control restrictions implemented in early FY2022. The demand was substantially lower than the previous two (2) financial years. Nevertheless, we have witnessed a gradual recovery in orders since the 4QFY2022 and we anticipate the orders to rebound stronger going forward as the economic recovery is charting a good momentum. The volume of new MyKads processed daily is also expected to increase with Government agencies’ operations returning to normalcy with a larger workforce, in line with the Government’s “Transitioning to Endemicity” phase. Multi-Purpose ID Besides MyKad, Datasonic is also highly experienced in multi-purpose ID supported by our in-house software applications and OS as well as R&D team. Following the reopening of borders, big inflow of foreign workers into Malaysia will be forthcoming. The pandemic has highlighted the critical need to have a robust system to monitor and verify the movement of foreigners. The Government is considering to implementing implement the multipurpose ID such as the foreign worker card (“i-KAD”), which has a highly secured chip with the latest security features to avoid fake cards being issued. Financial Cards Renewal and Migration As the largest personalisation solution provider for Europay, Mastercard and Visa (“EMV”) chip-based credit card and Malaysian Chip Card Specification (“MCCS”) standard debit card in Malaysia, we stand to benefit from the renewal and migration process of financial card. We were the pioneer in credit and debit card personalisation and played a major role in all past national financial card migration process since year 2003. In 2016/2017, there was a nation-wide migration from chip-based to PIN-based credit and MCCS debit card. Before that, it was the migration of magnetic stripe to chip-based card. In the coming financial years, large batches of PIN-based credit card and MCCS debit card are due for renewal, which bodes well for Datasonic. Acceleration of Digitalisation Digital transformation has been the key focus for businesses and governments around the globe, including Malaysia. The launch of Malaysia Digital Economy Blueprint (“MyDIGITAL”) will help our country achieve its aspiration to become a digitally-driven, high-income nation and regional leader in the digital economy. There are also plans for a digitallyenabled government that will provide integrated end-to-end online services, which are more efficient, effective and transparent. As part of this transformation, the Government will introduce a National Digital Identity (“NDI”) for online services and transactions, according to the Ministry of Home Affairs. Besides digital ID, there are many opportunities for digitalisation such as Government services, security documents, eKYC, border control solutions, security and surveillance, and many more. The transformation has certainly posed immense opportunities for Datasonic. Premised upon our track record and R&D capabilities, we are ready and strongly believe that Datasonic can play a key role in Malaysia’s digital transformation journey. Closing Remarks All in all, it is shining prospects ahead for Datasonic underpinned by the aforementioned factors. Our focus remains on the execution and delivery of our order book and projects while working hard to secure more jobs to boost our order book. At the same time, we are also mindful of the ongoing challenges, and Datasonic will continue to leverage on our solid balance sheet and prudent management to steer through the obstacles ahead. We are looking forward to an exciting financial year in FY2023 barring any unforeseen circumstances. Wan Zalizan bin Wan Jusoh Managing Director
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