Kuala Lumpur – Malaysian Prime Minister Anwar Ibrahim has directly intervened to resolve a contentious power struggle within NexG Berhad, the government’s primary technology solutions provider, according to sources familiar with the situation. The move, aimed at averting a high-profile controversy, centers on a dispute between two of Ibrahim’s long-time associates, Farhash Wafa Salvador and Ishak Ismail, over control of the company.
The intervention underscores the political sensitivities surrounding NexG, which holds key government contracts, including a six-year agreement to supply Malaysian passports and identity cards, as well as an 18-month extension for foreign worker cards and expanded production of driving licenses as reported by Channel NewsAsia. The escalating conflict had reportedly begun to attract regulatory scrutiny, prompting the Prime Minister to step in.
Farhash Wafa Salvador, a former political aide to Ibrahim, had been leading a campaign to gain control of NexG. Though, Prime Minister Ibrahim instructed him to withdraw from this effort, clearing the path for Ishak Ismail, a veteran businessman with a long-standing relationship with the Premier, to assume leadership of the company. This directive comes as the administration grapples with allegations of collusion between the Malaysian Anti-Corruption Commission (MACC) and corporate figures, as highlighted in a recent Bloomberg report.
While Farhash holds no direct equity in NexG, he maintains a 20 percent interest in MMAG Holdings, a publicly listed logistics firm in which NexG itself owns a 10 percent stake according to sources. Relations between Chin and Farhash reportedly began to deteriorate in mid-2025, coinciding with NexG securing several significant government contracts.
Fraying Ties and Regulatory Concerns
Corporate executives and bankers close to the situation indicated that disagreements over control of NexG fueled the rift between Chin and Farhash. Farhash reportedly sought a more direct equity interest in the company. The resulting rupture allegedly triggered regulatory scrutiny of NexG’s transactions, prompting Chin to seek potential investors to acquire his stake. Ishak Ismail subsequently acquired a 25 percent interest in NexG through his corporate vehicles and nominees in mid-November.
Ishak Ismail is a well-known figure in Malaysian corporate circles, having been a prominent player in the country’s privatization program in the 1990s, including involvement with Indah Water, the national wastewater management company. His re-emergence in a significant corporate role signals a potential shift in dynamics within the government technology sector.
MMAG Holdings and Recent Market Activity
The situation also involves MMAG Holdings, where Farhash recently exited his position as largest shareholder. On December 31, 2025, Farhash sold his 19.9% stake in MMAG at a premium, though still incurring an investment loss of RM97.48 million (approximately $20.5 million USD based on current exchange rates) as reported by The Edge Malaysia. The shares were pledged to Velocity Capital Partner Bhd and acquired by Future Star Sdn Bhd, a holding company owned by 25-year-old Cheah Min Lly.
Prior to the sale, Farhash had acquired the MMAG stake at a significant discount in March 2025, raising questions about the initial transaction. In November 2025, shares of both MMAG Holdings and NexG Berhad experienced unusual market activity, drawing attention from regulators as noted by MalaysiaNow. Bursa Malaysia issued a trading reminder to investors to exercise caution.
What to Watch Next
The Prime Minister’s intervention appears to have temporarily resolved the immediate conflict at NexG. However, the underlying dynamics of political connections and corporate interests within Malaysia’s technology sector remain a key area to watch. The regulatory scrutiny surrounding NexG’s transactions and the market activity involving MMAG Holdings suggest continued oversight is likely. The long-term implications of Ishak Ismail’s leadership at NexG and its impact on government contracts will also be closely monitored.
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