Frankly Speaking: Supply chain critical in rollout of new identity cards
This article first appeared in The Edge Malaysia Weekly on January 12, 2026 - January 18, 2026
The government will introduce a new MyKad in June — a matter that is relevant to at least 75% of the population. A new-look passport will also be introduced.
According to Minister of Home Affairs Datuk Seri Saifuddin Nasution Ismail, the new MyKad and passport will have multi-layered security features aimed at curbing forgery and tampering. The new MyKad is expected to be more durable.
While the date of the rollout of the new national identity cards has not been announced yet, there is likely to be a long line of people eager to get their hands on the new MyKad when it becomes available.
Unlike the passport, which is only required when one travels abroad, the new MyKad is expected to be a conduit for the delivery of targeted subsidies, financial aid and welfare benefits.
The government is already using the MyKad as the primary mode of identification in the distribution of direct financial assistance such as Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (Sara).
There are nine million STR recipients and eight million Sara beneficiaries. The STR is paid out in stages over the year while the Sara aid is credited monthly to the MyKad.
Considering that the new MyKad is critical for the recipients, surely there will be a rush when the government starts rolling it out. Hence, an efficient rollout of the new MyKad will be crucial.
NexG Bhd (KL:NEXG) was awarded the job to supply the new MyKad and passport. Last year, it secured a RM732.7 million contract to supply the new identity cards and a RM1.73 billion contract for the new passports. The contracts are for six years.
NexG, which has seen a change in shareholding over the past year, has been supplying the MyKad to the National Registration Department since 1999. Who is really in control of the company is not clear.
Irrespective of the shareholding in NexG, what the government cannot afford to have is hiccups in the supply of the new MyKad and passport, as well as when the rollout begins.
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