Malaysia's government has ruled out acquiring Datasonic Technologies Sdn., the supplier of the country's passports and national identity cards. The decision comes despite ongoing efforts to protect the security and sovereignty of citizens' identities while ensuring public spending value, according to the National Security Council.

Nex G Bhd., parent company of Datasonic Technologies, revealed on Friday that the government had considered a potential 7.5 billion-ringgit ($1.9 billion) acquisition. The Ministry of Finance reportedly requested an indicative price for a possible takeover during a July 24 meeting, though Nex G noted the request was made verbally with no written documentation. The ministry declined to comment when approached.

The proposed acquisition arises amid a corporate dispute involving Nex G. Former executive Razif Jalil identified the company as the target of an "attempted hijacking" by labor tycoon Aminul Islam, part of what Razif described as a corporate mafia involving law enforcement agencies.

Datasonic Technologies currently holds government contracts to supply passports and IDs through 2032, valued collectively at approximately 2.46 billion ringgit. These agreements represent the core business and primary revenue source for Nex G, and any disposal could significantly impact operations and the company's continued listing on Bursa Malaysia.