Company linked to Farhash gets RM732 million job to supply MyKads

An IT solutions company linked to a firm chaired by controversial PKR leader turned businessman Farhash Wafa Salvador has secured a lucrative government contract worth RM732.72 million to supply MyKad to the National Registration Department (JPN).

The contract, awarded to NexG Berhad, formerly Datasonic Group Berhad, comes just six months after Farhash emerged as the largest shareholder of MMAG Holdings Bhd.

On March 26, Farhash, the former political secretary to Prime Minister Anwar Ibrahim, bought 462 million shares in MMAG Holdings for RM184.8 million, according to a filing with Bursa Malaysia.

Financial news TheEdge had reported that while the purchase price was not disclosed, a Bloomberg report showed that the 462 million shares were transacted off-market on March 26 in four tranches at 40 sen each, representing a 65% discount to MMAG’s closing price of 66 sen on the same day.

Following this, Farhash owns 20% of MMAG Holdings.

The next day, NexG Bhd became a substantial shareholder of MMAG Holdings with a 9.53% stake, up from 1.95% just three weeks earlier.

NexG stated in a Bursa filing at the time that the company was ready to diversify its businesses, including delivering "a comprehensive security and ID solution with integrated logistics support by leveraging MMAG’s logistics, warehousing, and aviation services".

As the largest shareholder, Farhash was appointed chairman of MMAG Holdings, taking over from former Public Service director-general Mohd Khairul Adib Abd Rahman, who had meanwhile become a substantial shareholder in NexG with a 6.1% stake.

The contract to NexG was awarded by the home ministry and spans six years, from June 1,2026 to May 31,2032.

The ministry had already awarded NexG another contract worth RM1.73 billion to supply Malaysian passports over six years.

The identity cards to be supplied to JPN include MyKad, MyTentera, and MyPoca, the special card issued under the Prevention of Crime Act.

According to NexG, its latest contract is to provide "a next-generation upgraded MyKad", which it said would help Malaysians receive fuel and other subsidies.