25/09/2025

Editorial T: 03-7784 6688 F: 03-7785 2625 E: sunbiz@thesundaily.com Advertising T: 03-7784 8888 E: advertise@thesundaily.com

SCAN ME

THURSDAY | SEPT 25, 2025

NexG ready to leap into the future of national identity

KUALA LUMPUR: Cradle Fund Sdn Bhd is close to fully utilising the RM65 million allocation for startup develop ment programmes this year, with more than 100 startups earmarked for approval under its flagship grant schemes, said group CEO Norman Vanhaecke. Cradle is systematically disbursing the government funds in quarterly batches and expects full commitment of its RM65 million allocation by year-end. “The allocation, which covers not only grants but also the Bengkel Inovasi GLC and other capacity building programmes, is close to being fully utilised. We are very much in high gear to execute and deliver all those programmes before the end of the year,” he told SunBiz on the sidelines of MBAN Summit 2025 U Mobile and ZTE to develop AI-enhanced 5G-A solutions tailored for East M’sia PETALING JAYA: U Mobile, Malaysia’s newest 5G network provider, has signed a memorandum of understanding (MoU) with ZTE Corporation, a global leading provider of integrated information and communication technology solutions. U Mobile and ZTE will co-develop AI enhanced 5G-Advanced (5G-A) network solutions that are tailored towards industry specific requirements in East Malaysia. U Mobile will leverage ZTE’s AI enabled 5G-A technologies to address the diverse geographic and environmental conditions of the different economic sectors in the region, delivering stable coverage as well as reliable and high service quality, essential for businesses. U Mobile and ZTE will also work together to develop an intelligent 5G enabled industrial campus framework to accelerate industrial digitalisation. The companies will jointly identify pilot locations in East Malaysia to trial and verify the solutions, integrated with AI and network slicing to unlock smarter operations and enhance efficiency. Ultimately, U Mobile and ZTE aim to create replicable deployment models of these intelligent campuses to further accelerate adoption across industries in East Malaysia. “U Mobile is delighted to sign this MoU with ZTE to co-develop AI-enhanced 5G-A network solutions and establish intelligent 5G-enabled industrial campuses as it underscores our commitment to acceler ating enterprise and industry adoption of 5G and 5G-A,” said U Mobile chief technology officer Woon Ooi Yuen. ZTE Malaysia managing director Steven Ge said they are committed to advancing AI-enhanced 5G-Advanced across East Malaysia’s diverse terrain and industries. “We will bring our latest innovations – including 5G Advanced Native AI-based station connectivity with Smart Antenna Algorithm, alongside Intelligent Campus connectivity solutions – to deliver stable, high-quality networks for both enterprises and consumers.” Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

Ű BY JOHN GILBERT sunbiz@thesundaily.com

o Backed by RM1.73 billion long-term passport contract, company laying groundwork for next wave of digital ID infrastructure

significantly raise efficiency, se curity, and technology standards. “This ensures Malaysia can meet both immediate contractual obli gations and growing market demand without compromising on quality or reliability,” he said. NexG’s Phase 2 involves the construction of a new advanced facility equipped with the latest secure printing technologies, auto mation, and integrated digital systems. Upon completion, this facility is expected to deliver an additional 2.5 to 3 times the Phase 1 capacity annually, giving Malaysia the scale to serve both local requirements and international markets. “With Phase 1 upgrades doubling annual passport production and enhancing MyKad and other ID cards with greater efficiency and security, and with Phase 2 delivering a new advanced facility, NexG will be ready to serve both domestic and international markets. “Our focus now extends to Asean and Africa – vast regions where secure identity and digital solutions are in demand. Backed by Malaysia’s track record and competitiveness, NexG is determined to bring world class Malaysian innovations to the global stage,” Hanifah said. With NexG’s long-standing Malaysian contracts as a founda tion, the company is well-posi tioned to expand abroad, which has been traditionally dominated by European providers. “Malaysia stands a strong chance. Our solutions are more cost-efficient without compromising on quality, and we bring with us the hallmark of Malaysian diligence and reliability,” Hanifah said. “The three-day event will open with a showcase of Malaysian startups, followed by a second day dedicated to Asean-wide networking and collaboration, and a third day featuring a high-level conference with speakers from the region and beyond,”Vanhaecke said. The summit will be officiated by Prime Minister Datuk Seri Anwar Ibrahim and the Asean secretary general, underscoring the political weight behind the initiative. “This summit reflects not only Cradle’s commitment but also the government of Malaysia and Asean’s recognition of startups as a key engine of the region’s innovation economy. It will bring together startups, investors, corporates, ecosystem builders and policymakers into Kuala Lumpur to immerse themselves in what Malaysia and Asean have to offer,”Vanhaecke said.

CYBERJAYA: NexG Bhd is entering a new growth phase as it positions itself at the forefront of Malaysia’s digital identity transformation. Backed by more than RM1.73 billion in a long-term government contract for its passport solution, the company is laying the groundwork for the next wave of national digital infrastructure. Chief strategy officer Jorrine Ang Pei Gaik said the significant momentum is fuelling NexG’s expansion beyond traditional sectors, with its sights now set firmly on a comprehensive national digital ID platform. “We see this as more than just an infrastructure project – it’s a leap into the future of national identity. “By investing in digital ID infrastructure and upskilling today, we are building the foundation for stronger shareholder value, future proofing our business model with sustainable earnings, new revenue streams and capital growth,” she told reporters after the company’s annual general meeting yesterday. With the national push for digitalisation gaining momentum, NexG’s alignment with government priorities ensures it remains an integral player in Malaysia’s tech transformation. Looking ahead, NexG is com mitting to long-term strategic invest ments in technology and talent. As NexG sharpens its focus on digital infrastructure and national ID initiatives, the company is already seeing the early impact of its strategy in its financial outlook. For the financial year ended

By FY27, the anticipates that revenues could grow by as much as 80% from FY25 levels, driven by new national contracts such as the digital passport and ex panded digital iden tity platforms. “The groundwork we are laying today is not just for next year – it’s for the next group

Hanifah: RM250 million two-phase expansion plan

Ang: Future-proofing NexG’s business model

generation of digital governance. We are preparing NexG to be a national leader in identity infra structure, and these numbers reflect the confidence we have in our direction,” Ang said. Executive chairman and group CEO Datuk Hanifah Noordin said NexG has embarked on a RM250 million two-phase expansion plan. Phase 1 focuses on immediate upgrades to its existing facilities, supporting the recently awarded government contract for Malaysian passports while preparing the group to capture new growth opportunities in the secure ID sector locally and abroad. “These enhancements will double passport production capacity, streng then secure ID document output, and intelligence (AI) as one of the biggest drivers among local startups applying for government grants this year. “AI has become one of the biggest drivers we see in a lot of startups this year. The accessibility of AI tools globally is giving Malaysian founders a competitive edge,” he said. “It actually puts us quite a bit ahead compared to other countries. We are seeing more AI startups here in Malaysia that are competitive with what’s happening internationally.” He said the trend reflects a stronger pipeline of applications, with many startups now building solutions designed for regional and global markets rather than hyperlocal use cases. Looking ahead, Cradle will cap off the year by hosting the Asean Startup Summit 2025 in Kuala Lumpur on Nov 3–5, after receiving a regional man date to execute the Asean Startup Initiative.

March 2025, the group recorded solid revenue of RM370 million. However, this is just the beginning of what the company anticipates to be a significant growth trajectory in the coming years. “Our strategic investment of RM85 million into the current Skill ID project is a calculated move to drive operational scale and revenue uplift,” said Ang. “With this investment, we are projecting revenue to increase by approximately 50% in the first phase, beginning in the financial year 2027. This is a clear indication that we are building towards a stronger and more sustainable future.” Looking beyond the near term, NexG’s digital ID initiatives are ex pected to deliver even greater value.

Cradle Fund close to using up RM65m allocation for startups this year

RM150,000 for prototyping and product validation to give startups the opportunity to test concepts and establish market fit before seeking larger funding rounds. “The philosophy is to take an idea, bring it to market, and then build the runway for the next stage,” he said. Once they gain traction, recipients have several pathways – tapping angel investors, securing private funding or moving up to Cradle’s CIP Sprint grant, which provides up to RM600,000 for more advanced, market-ready ventures. Vanhaecke said this tiered approach helps startups build mo mentum without becoming over dependent on grants. “It’s about ensuring that ideas don’t get stuck at the concept stage. With Spark, they get to prototype and validate. With Sprint, they get to scale.” Vanhaecke highlighted artificial

yesterday. The current cycle marks Cradle’s third batch of approvals this year, and Vanhaecke said the agency is “dili gently going through every single application”to ensure funding goes to promising ventures. “We expect more than 100 startups to be approved for grants this year alone and we expect more approvals tied to next year’s budget announcement,” he added. Vanhaecke shared that Cradle receives about 600 applications annually, and every one of them goes through a rigorous process that takes one to two months, from pitching and due diligence to a final round of pitching. He said the CIP Spark scheme accounts for the majority of approvals, reflecting Cradle’s focus on seeding early-stage ideas. CIP Spark provides up to