KUALA LUMPUR (Oct 6): Zetrix AI Bhd (KL:ZETRIX) faces uncertainty over its revenue collection business after the Ministry of Transport (MOT) suspended its services as a collection agent for the Road Transport Department (JPJ) over unremitted government funds totalling RM314 million.
MBSB Research said that even if Zetrix AI has a proposal to resolve the outstanding remittances, financial liquidity poses an additional hurdle for the group.
It noted that Zetrix AI reported cash and cash equivalents of RM541.6 million in the second quarter ended June 30, 2026 (2QFY2026), its short-term loans and borrowings stand higher at RM853.1 million, raising concerns over its ability to make immediate settlement payments.
"Thus, we do not discount the possibility that Zetrix AI may have difficulties in making the payment in the near term," said MBSB Research in a note on Tuesday.
Even if Zetrix AI manages to clear its arrears, the resumption of its collection agent role is not guaranteed, the research house said.
"Potentially, should the group manage to resume the JPJ services, there may be changes in standard operating procedure (SOP) whereby the government revenue would need to be credited immediately.
"This would prevent similar incidents from occurring. The group announced that it has submitted a proposal to resolve outstanding remittances and is working towards restoring the affected services, subject to the relevant approvals," it added.
Furthermore, MOT’s active promotion of its proprietary MyJPJ application, alongside existing channels such as JPJ counters, kiosks, and the JPJ Public Portal, could diminish the long-term necessity for third-party collection agents.
Such operational risks have prompted MBSB Research to place its recommendation and target price on the stock under review.
The research house noted that despite four engagement sessions held since May with key stakeholders — including the Ministry of Finance — and 35 reminder notices issued by JPJ, the outstanding arrears remain unsettled.
Consequently, MOT and JPJ are preparing to initiate legal proceedings to recover the unremitted funds.
Meanwhile, MARC Ratings recently revised its MARCWatch status on Zetrix AI to “negative” from “developing”.
MARC cited heightened concerns over corporate governance, transparency, and a lack of material information regarding a sharp rise in borrowings, alongside the recent resignation of the company’s external auditor, TGS TW PLT, due to portfolio rationalisation and resource management.
MBSB Research is keeping its earnings forecasts unchanged for now, pending further developments. Non-AI and non-blockchain segments currently account for approximately 40% of the group’s total revenue.
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