Datasonic to expand smart card business to Indonesia

Datasonic to expand smart card business to Indonesia
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KUALA LUMPUR (Sept 20): Datasonic Group Bhd, which produces identity cards and passports in Malaysia, is expanding its smart card business to Indonesia.

In a filing to Bursa Malaysia, the group said it had set up a subsidiary in Indonesia called PT Datasonic Teknologi Indonesia to facilitate the expansion.

When contacted, a senior staff at Datasonic said the incorporation of the subsidiary is part of the group's plan to expand its international footprint, especially in the personalised smart card industry, which is valued by Ireland-based Research and Markets at US$6.7 billion in 2016.

In Asia-Pacific, Research and Markets said the global smart card industry is expected to grow from US$2.8 billion in 2017 to US$4.5 billion in 2022 at a five-year compounded annual growth rate of 9.9% from 2017 through 2022.

"The new subsidiary will facilitate the expansion of Datasonic internationally, as the potential is huge," the Datasonic senior staff, who declined to be identified, told theedgemarkets.com.

The foray into the Indonesian market is expected to be Datasonic's maiden venture overseas, as it currently does not derive any revenues overseas, according to information contained in its 2017 annual report.

Listed on the Main Market since September 2012, shares in Datasonic edged up 1 sen or 0.83% to close at RM1.21 today, giving a market capitalisation of RM1.63 billion.