Datasonic Group Berhad Annual Report 2021

DATASONIC GROUP BERHAD 30 Multi-Purpose ID While we continue to be the key provider of MyKad for Jabatan Pendaftaran Negara (“JPN”), we are also engaging with other Government departments such as JIM to provide highly secure, innovative and cost competitive solutions for multi-purpose ID such as the foreign worker card (“i-KAD”). Datasonic is highly experienced in multi-purpose ID, having been the main provider of MyKad since 2012. We also possess our in- house software applications and OS, supported by our own R&D team. Furthermore, the Group is also providing technical and maintenance services for JPN branches. Financial Cards Renewal & Migration We are the largest personalisation solution provider for Europay, Mastercard and Visa (“EMV”) chip-based credit card and Malaysian Chip Card Specification (“MCCS”) standard debit card in Malaysia. Datasonic is a pioneer in credit and debit card personalisation and played a major role in the previous two (2) national financial card migration process. In 2016 / 2017, there was a migration from chip- based to PIN-based credit and MCCS debit card. Prior to that, it was the migration of magnetic stripe to chip-based card. The Group is anticipating rising orders starting from FY2022 onwards and for the next three (3) financial years as the previous large batches of PIN-based credit card and MCCS debit card are due for renewal. Digital Transformation Journey The pandemic has sped up the process of digital transformation for businesses and governments around the world. Higher emphasis, efforts and resources are being channelled into digitalisation as it is crucial not only to adapt to the ever-changing landscape but also to innovate and create long-term sustainable growth. Digital transformation also plays a vital role in the contactless environment required amid the COVID-19 pandemic. The introduction of Malaysia Digital Economy Blueprint (“MyDIGITAL”) is in-line with this fundamental change. This augurs well for Datasonic as the acceleration of digitalisation presents a huge opportunity for us. For instance, the digitalisation for e-Government services, security documents, electronic Know-Your-Customer (“e-KYC”), digital ID, border control solutions, security and surveillance and many more. Based on our proven track record, technical expertise and continuous R&D initiatives, we strongly believe that we can play an important role inour country’sdigital transformation journey and provide integrated and high security solutions. MANAGEMENT DISCUSSION & ANALYSIS