Enhanced financial services onboarding through the incorporation of biometrics and identity intelligence.
NexG, a Malaysian IT service management firm, announced a substantial investment to cater to the escalating global demand for secure identity documents. The company seeks to invest approximately RM250 million, equivalent to around USD 53 million or $15.38 million, to establish a state-of-the-art, Industry 4.0-compliant production facility for secure ID documents.
The investment will unfold in three successive phases, enabling continuous optimization and improvement of production processes. Each phase is anticipated to escalate the annual production capacity to more than 15 million units of secure ID documents, with the completed facility projected to bolster NexG's current capacity by an estimated 50 million units.
The new facility will be embellished with advanced security infrastructure and will leverage fully automated processes, potentially heightening both production capacity and product precision. This foreseeable boost in competitiveness is expected to translate into significant growth in the global market.
The financial backing for this investment will primarily stem from internally generated funds, equity fundraising, strategic partnerships, and borrowings. Each phase is projected to generate revenue between USD 100 million and USD 200 million, depending on factors such as document type, country-specified requirements, project scope, and the level of security embedded in the documents.
The upgraded facility aims to facilitate NexG's efforts to address international demand for robust and secure identity infrastructures. The company views this investment as a strategic step towards propagating Malaysian-developed secure identity technologies in various countries globally.
By enhancing its production capabilities and establishing a dedicated global platform, NexG is poised to capitalize on the soaring demand for secure ID documents, a critical component of contemporary digital and physical identity systems. Additionally, the facility will support future innovation in research and development, system integration, and identity technology, ensuring that NexG maintains its competitive edge in the identity document sector.
- The investment by NexG in a new production facility for secure ID documents, driven by technology and a primary focus on business growth, is anticipated to escalate its production capacity by an estimated 50 million units, which could potentially lead to significant growth in the global market.
- To support the efforts in addressing international demand for robust and secure identity infrastructures, NexG plans to leverage the new facility to capitalize on the soaring demand for secure ID documents – a critical component of contemporary digital and physical identity systems – while simultaneously fostering innovation in research and development, system integration, and identity technology.
