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Malaysia-based IT service management company, NexG Bhd, has announced a substantial investment to bolster its secure identity document production capabilities in response to escalating global demand.
The investment, amounting to approximately RM250 million, will go towards establishing a state-of-the-art production facility employing cutting-edge Industry 4.0 technologies. The facility aims to significantly expand NexG's manufacturing capacity, with each investment phase projected to increase annual production to over 15 million units of secure ID documents, adding an estimated 50 million units to the company's existing capacity upon full implementation.
The new facility will be highly automated, featuring advanced security infrastructure to enhance product precision and safety. This move represents a significant leap forward in both capacity and technological sophistication, positioning NexG as a key player in meeting the growing international demand for secure identity infrastructure, particularly amid the rising need for digital identity and authentication solutions worldwide.
The investment will be executed in three phases, allowing for ongoing optimization and improvements to production and security features. Revenue projections suggest each phase could generate between US$100 million and US$200 million depending on factors such as document type, country-specific requirements, project scope, and security level. Financing for the RM250 million investment will come from a combination of internally generated funds, equity fundraising, strategic partnerships, and borrowings.
In addition to bolstering its production capabilities, NexG aims to leverage this investment to strengthen its global platform for secure identity solutions and expand the reach of Malaysian-developed technologies internationally. The company also expects the new facility to support future innovation in research and development, system integration, and identity technology.
In summary, NexG's strategic investment represents an effort to modernize, scale, and future-proof its secure identity document production, targeting significant increases in capacity, security, and global market presence.
The investment of approximately RM250 million will be utilized to develop a technologically advanced production facility, aligning NexG's business in finance with the innovations of technology. This facility, employing Industry 4.0 technologies, aims to expand NexG's capacity in producing secure ID documents, catering to the increasing global demand in both traditional and digital identity and authentication solutions.
