This article first appeared in The Edge Malaysia Weekly on September 21, 2026 - September 27, 2026

Zetrix AI Bhd (KL:ZETRIX) was a darling of the stock market when it was still called MyEG Services Bhd. It was the pioneer in online government services transactions such as road tax and foreign maid renewals. At its peak, it had a market capitalisation of over RM6 billion. But once it lost its monopoly of those e-government services, it pivoted to new technology businesses like blockchain, artificial intelligence and other digital assets which, to be frank, few — including the market — could fathom. This probably explains why its market value has fallen to RM1.55 billion currently. At less than 20 sen a share, this former market darling is now effectively a penny stock.

A large part of the loss in market capitalisation happened in the past few weeks, driven by the forced selling of millions of shares belonging to its founder Wong Thean Soon, or T S Wong as many know him.

While one could argue that the forced selling is a personal matter between Wong and his financiers, there must have been a trigger, and it could well be linked to Zetrix AI itself.

And there are definitely issues surrounding the company. One is the massive RM3.7 billion development cost incurred in just three years. In the financial year ended Dec 31, 2023 (FY2023), development cost was RM468 million. In FY2024, it rose to RM662 million and in FY2025 it was a whopping RM1.02 billion. In the first six months of 2026 alone, RM970 million was spent on development cost.

These are staggering numbers by any measure, and Zetrix AI has funded a large part of it with bank borrowings and RM2 billion of sukuk debt — of which RM215 million is due for redemption in six months in March 2027.

But unlike RM3.7 billion spent on constructing a factory to build cars, which is a visible outcome, the money spent on software development is not.

Zetrix AI has partnered a Chinese company, Bubi Network Technology Co Ltd, to build a blockchain infrastructure and the bulk of development costs is believed to have been spent on this.

But in the name of transparency, isn’t it about time Zetrix AI provides a full and detailed disclosure on what the money was spent on and who it was paid to? Is it still a work in progress? And if there are tangible outcomes, what are they?

It certainly did not help that Zetrix AI’s share price plunged soon after its auditor since FY2021, TGS TW PLT, resigned as auditor of 18 Bursa Malaysia-listed companies citing resource problems (see also “TGS TW drops 18 Bursa-listed clients as senior auditors depart” on Page 20 and “More drama at Zetrix on Page 16). These are small companies compared with Zetrix AI, and the resignations may be unrelated to the problems faced by Zetrix AI.

Nonetheless, Zetrix AI must act quickly if it wants to regain market confidence.

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