ANNUAL REPORT 2025 OUR PERSPECTIVE 40 FUTURE PROSPECTS AND OUTLOOK As NexG Berhad enters FY2026, we are well positioned to transition from a legacy secure document provider into a trusted enabler of Malaysia’s digital future. The year ahead is expected to be one of execution; converting the momentum of FY2025’s strategic groundwork into revenue diversification, recurring income growth and expanded national relevance. The Group’s transformation framework, anchored by the Secure Identity Solutions, Digital ID & Credit Profiling and CSA pillars, now supports a broader mission; to contribute meaningfully to the Government’s national digitalisation agenda. This agenda is spearheaded by multiple policy blueprints and cross-ministerial strategies, all of which create fertile ground for NexG’s platforms and capabilities. Among the most relevant is the MyDigital Blueprint, launched by the Government to position Malaysia as a digitally-driven, high-income nation and a regional leader in the digital economy by 2030. Central to this blueprint is the implementation of a National Digital Identity (“Digital ID”) framework, which seeks to provide every Malaysian with a secure, verifiable digital credential for accessing government and private sector services online. The Group’s e-KYC solutions, which is already deployed by major banks and telcos will form the technical foundation of a scalable, AI-driven identity verification infrastructure to support nationwide adoption of Digital ID. In tandem, we are advancing the deployment of our proprietary Smart Credit Overview and Rating Engine, which supports the Government’s financial inclusion agenda under frameworks such as Bank Negara Malaysia’s Financial Sector Blueprint 2022–2026. This policy aims to broaden access to credit, especially for microenterprises, gig workers and underserved communities. This engine addresses this challenge by using alternative data sources to generate dynamic credit scores, giving financial institutions and digital lenders more tools to serve new-to-credit borrowers responsibly. Management Discussion And Analysis (Cont’d) The Group’s expansion into Indonesia and West Africa, through recent smart card and e-Passport contracts, also supports Malaysia’s ambitions under the ASEAN Digital Masterplan 2025, which promotes cross-border digital trade, secure data flows and regional interoperability. We aim to replicate our domestic track record in these new markets by offering locally integrated, regulation-aligned solutions under the Secure Identity Solutions and Digital ID & Credit Profiling pillars. Additionally, our work in aviation digital infrastructure, border security and terminal based citizen services aligns closely with the national push for digital public service delivery, as outlined in the 12th Malaysia Plan (2021–2025) and supported by public sector ICT initiatives under MAMPU. These priorities present significant opportunities for the Group’s CSA pillar, which will continue to pursue high-impact government collaborations, equity-linked partnerships and public-private consortia in sectors critical to national digital transformation. To support this growth, the Group maintains a robust capital position and is in the process of executing a capital raising plan to fund long-term investments in technology, M&A and infrastructure platforms. These efforts are underpinned by strong cash flows, a net cash balance sheet and a disciplined capital allocation strategy. In line with our strategic focus on long-term value creation, the Board has made the prudent decision not to declare a dividend for the financial year under review. This decision reflects our commitment to reinvest our earnings into high-impact technology initiatives that we believe will significantly enhance the Group’s competitiveness, operational efficiency and future earnings potential. We are confident that this reinvestment strategy will generate sustainable returns for our shareholders over the long term and position the Group for accelerated growth in the evolving digital economy. With clear policy alignment, proven operating credentials and an expanded suite of digital trust solutions, NexG Berhad is well placed to contribute to Malaysia’s vision of becoming a secure, inclusive and globally connected digital economy. Our focus on empowering trust, driving innovation and enabling secure digital access positions us as a key partner to the Government and a long-term value creator for shareholders.
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