ANNUAL REPORT 2025 OUR PERSPECTIVE 35 BUSINESS AND OPERATIONAL REVIEW FY2025 marked a year of strategic recalibration for NexG Berhad as the Group embarked on a transformation journey that aligned our corporate direction with the country’s evolving digital economy. The decision to rebrand from Datasonic Group Berhad to NexG Berhad, formalised with shareholder approval in February 2025, was not merely symbolic; it signified a broader mandate and strategic intent to move beyond secure document production and into the realm of national digital trust infrastructure, inclusive financial technologies and cross-border system integration. To support this repositioning, the Group undertook an internal realignment to consolidate and expand its offerings across a broader spectrum of secure identity, digital trust and public-sector innovation domains. The business continues to be anchored by long-standing expertise in secure identity infrastructure—serving the Malaysian Government through the supply of MyKad, passports, i-KAD, and security chips, as well as the operation of biometric authentication and border control systems. This core remains central to the Group’s financial performance and reflects NexG’s ongoing commitment to national security and identity sovereignty. Building upon this foundation, NexG has extended its reach into high-growth verticals such as digital onboarding, biometric verification and regulatory technology (“RegTech”) solutions. Leveraging AI-powered e-KYC technologies, which are already deployed by major banks and telecommunications companies, the Group is strengthening its presence in areas critical to digital finance and compliance. These capabilities support secure customer onboarding, fraud mitigation, AML screening and real-time identity verification—enabling clients to meet stringent regulatory standards while enhancing user experience. Management Discussion And Analysis (Cont’d) In parallel, the Group is actively exploring alternative credit assessment tools and inclusive credit profiling mechanisms that align with the evolving needs of unbanked and underbanked segments. These initiatives represent a natural extension of NexG’s identity expertise and reflect its ambition to enable digital trust infrastructure that goes beyond authentication to include data-driven risk evaluation and digital inclusion. Beyond these offerings, NexG continues to expand its role as a strategic partner to government-linked entities and national institutions. By cultivating multi-stakeholder collaborations— both locally and regionally—the Group aims to accelerate the deployment of future-ready systems for identity, data governance, and secure public service delivery. These strategic directions position NexG to play an increasingly important role in supporting Malaysia’s digital economy blueprint and regional digital connectivity agendas. Apart from the rebranding and repositioning of strategic framework, the Group also undertook several corporate exercises and strategic initiatives that reflect the direction of our new structure. In March 2025, we completed the acquisition of a 51% equity stake in Innov8tif Holdings Sdn Bhd, a leading provider of e-KYC and AI-powered fraud detection solutions. This acquisition significantly enhances the capabilities of the Digital ID & Credit Profiling pillar, bringing in proprietary technology, a skilled digital workforce and an established base of financial and telco clients. Another key development to date, the Group took a 9.53% stake in MMAG Holdings Berhad under the CSA pillar, a position intended to accelerate specific joint projects in logistics enablement, digital terminal infrastructure, border technologies and smart-trade ecosystems.
RkJQdWJsaXNoZXIy NDgzMzc=