01 | ABOUT NEXG 02 | OUR LEADERSHIP 03| OUR PERSPECTIVE 04 | SUSTAINABILITY 05 | GOVERNANCE 06 | FINANCIAL STATEMENTS 07 | OTHER INFORMATION Sustainability Statement MANAGEMENT APPROACH ECONOMIC ECONOMIC & BUSINESS PERFORMANCE WHY IS THIS IMPORTANT? OUR APPROACH As a long-standing provider of mission-critical identity solutions to the Malaysian Government, the Group’s ability to perform economically is inseparable from our ability to deliver on national mandates reliably. Sound financial performance also enables NexG to continue honouring our obligations to stakeholders including employees, suppliers, customers, and the wider communities we operate in. Furthermore, it provides the stability needed to invest in capabilities to stay relevant in a rapidly evolving technology landscape. NexG's approach to economic sustainability is built on the responsible management of our core operations, underpinned by the consistent delivery of products and services, as well as sound governance. The Group’s business is anchored by our secure identity infrastructure, including delivering Malaysia National Identification Card (“MyKad”) and International Civil Aviation Organization (“ICAO”)-compliant e-Passport solutions to the Malaysian Government. NexG has been the sole provider of MyKad since 2012 and has served as the entrusted passport solutions provider since 2016, supplying passport chips, booklets and polycarbonate data pages. Additionally, NexG supports the Foreign Worker Card ("i-KAD") programme for foreign worker identification, managing both new and renewal applications alongside the continued development of its digital platform. We also provide end-to-end operational support for the Autogate border clearance systems at key international entry points, including Kuala Lumpur International Airport terminals. In the private sector, NexG operates one of the largest card personalisation service centres in Malaysia, providing credit, debit, and Automated Teller Machine (“ATM”) card solutions to a broad clientele of financial institutions. FY2026 brought a series of contract awards for NexG. This included contracts with Malaysia’s Ministry of Home Affairs (“MOHA”) for the supply of Malaysia e-Passport, as well as MyKad, MyTentera and MyPOCA solutions, until 2032. The i-KAD contract has also been extended to April 2027. Separately, the Group also expanded our scope of work with the Road Transport Department ("RTD"), covering the supply of consumables for driving license cards. For more information on our strategic initiatives and financial performance in FY2026, please refer to the Management Discussion & Analysis ("MD&A") section of this Annual Report FY2026. MEMBERSHIP OF ASSOCIATIONS NexG maintains active membership in a range of professional and industry associations, supporting the Group's awareness of regulatory developments, technical standards and evolving best practices relevant to its operations. International Civil Aviation Organization Construction Industry Development Board Malaysian Industry-Government Group for High Technology Association of Professional Social Compliance Auditors Association of Chartered Certified Accountants Malaysian Institute of Accountants International Association of Accounting Professionals Malaysian Institute of Certified Public Accountants Malaysian Institute Chartered Secretaries and Administrators - - - - - - - - - Sustainability STATEMENT (Cont’d) 51
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