PM Anwar Ibrahim intervenes to resolve control dispute at Malaysia government tech provider NexG

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PM Anwar steps in to end bitter tussle at Malaysia government tech provider NexG, say insiders

Sources tell CNA that PM Anwar Ibrahim instructed his former political aide-turned-business figure Farhash Wafa Salvador to withdraw from a campaign to take control of the company.

KUALA LUMPUR: Prime Minister Anwar Ibrahim has stepped in to end the high-stakes corporate confrontation between two of his acolytes for control of the government’s primary technology solutions provider, according to sources and insiders.

Corporate executives and government officials close to the situation told CNA that the premier had ordered his former political aide-turned-business figure Farhash Wafa Salvador to withdraw from a months-long campaign to take control of NexG.

Sources said that the directive clears the way for forces led by veteran businessman Ishak Ismail - another long-time associate of the premier - to lead the company.

The insiders added that Anwar’s instruction stems from a desire to avoid another high-profile controversy, given that his administration is already grappling with a recent Bloomberg report alleging collusion between the Malaysian Anti-Corruption Commission (MACC) and corporate figures to orchestrate hostile takeovers of listed firms.

The order was issued earlier this week and conveyed to at least two different persons, shortly before the en masse resignation of six NexG board directors aligned to Farhash on Wednesday (Mar 11), which was announced to Bursa Malaysia, the country’s stock exchange.

Ishak, who is currently performing the Umrah pilgrimage in Mecca, could not be reached by CNA for comment.

However, a senior aide of Ishak said that his boss had received word that Anwar “had advised the group led by Farhash to give up the fight for NexG”.

“The fight is over,” the aide said.

A senior banker and two corporate executives with close ties to Ishak told CNA that NexG is expected to announce eight new directors in coming days, to be led by Ishak and his son, Mohamad Najib Ishak.

Anwar’s intervention has averted what was becoming an acrimonious corporate confrontation headed for the courts.

Just hours before Anwar ordered Farhash’s business groups to withdraw, NexG founder Abu Hanifah Noordin made allegations of abuse of power at the government tech provider.

In a statement widely circulated on Tuesday, Abu Hanifah claimed that several former directors, independent directors and key management officers were “forced to leave their positions under circumstances that raised serious concerns with the company”.

“I was made aware that representations and threats had allegedly been made to certain individuals that they could face investigations by the authorities, including potential PDRM and AMLA-related actions, should they refuse to step down,” Abu Hanifah said, referring to the Malaysian police and alleged anti-money laundering offences.

The following account is reconstructed from interviews with bankers, lawyers and government officials, together with court documents and internal corporate records obtained by CNA.

NEXG’S ORIGIN AND FARHASH’S ENTRY

Abu Hanifah, a businessman who previously enjoyed close ties to former premier Muhyiddin Yassin, incorporated the company as Datasonic Group in 2008.

Datasonic was listed on Bursa Malaysia in 2012 and became central to the country’s border-security systems, supplying smart identification cards, passport chips and high-security personalisation solutions.

The company underwent numerous shareholding changes and was rebranded as NexG in February last year, becoming entangled in a web of crossholdings involving various corporate personalities.

These include Victor Chin Boon Long, a businessman whose publicly listed companies cut across different sectors from moneylending to logistics, and include entities such as Velocity Capital, MMAG Holdings, Hong Seng Consolidated, NexG, Green Packet and Revenue Group.

Chin brought Farhash into his corporate orbit a year ago when the latter bought an equity interest in MMAG.

The move is said to have caught the attention of Malaysia’s investing community, which tends to be drawn to counters with perceived political connections.

Farhash holds no direct equity in NexG. He has a 20 per cent interest in MMAG, a publicly listed logistics firm in which NexG itself owns a 10 per cent stake.

FRAYING CORPORATE TIES

According to financial executives tracking NexG developments, relations between Chin and Farhash began fraying in mid-2025.

In and around the period, NexG had secured several new and extended government contracts: an 18-month extension from the Home Ministry for foreign worker cards, a six-year contract to supply Malaysian passports and identity cards, and expanded work producing driving licence cards for the Road Transport Department.

Bankers close to Chin said relations between the two men deteriorated over disagreements regarding Chin’s control of NexG, with Farhash seeking more direct equity interest. Farhash could not be reached by CNA for comment.

Corporate executives and bankers told CNA that the rupture soon drew regulatory heat on transactions NexG had entered into.

They said that this prompted Chin to seek potential investors to take over his interest in NexG.

It was against this backdrop that Ishak entered the picture.

In the 1990s, Ishak ranked among Malaysia’s most aggressive corporate players, frequently surfacing in takeovers of publicly listed companies and as a beneficiary of government concessions under Malaysia’s privatisation programme, including rights to operate national wastewater management through Indah Water.

Stockbrokers and financial executives close to Ishak said that in mid-November, the businessman acquired a 25 per cent interest in NexG controlled by Chin’s corporate vehicles and nominees.

Shortly after the deal, Chin - then the company’s chief operating officer - resigned from NexG. He has since left Malaysia, according to bankers close to him.

HOSTILE PUSHBAC