This article first appeared in The Edge Malaysia Weekly on October 5, 2026 - October 11, 2026

THE situation at Zetrix AI Bhd (KL:ZETRIX) appears to be deteriorating, with more issues emerging. Late last Friday (Oct 2), Zetrix and its wholly-owned unit MyEG Sdn Bhd had their roles as collection agents for the Road Transport Department (JPJ) suspended, effective from 12.01am on Oct 5.

Zetrix AI has been collecting road tax renewal payments since April 2008, when it was known as MyEG Services Bhd.

“This decision was made after taking into account compliance with the stipulated terms and conditions of the agreement, as well as the status of obligations (responsibilities) yet to be fulfilled or settled by the company concerned,” JPJ says in a statement.

This means Zetrix AI’s duties as a collection agent for road tax renewal payments, driving licence renewals and traffic summonses have been suspended, which could adversely affect the company’s earnings.

This development follows Zetrix AI’s failure to remit more than RM200 million owed to JPJ, comprising payments collected for the renewal of road tax and driving licences as well as traffic summonses since May 2023, when its contract to provide e-government services was renewed.

Zetrix AI’s other payables and accruals amounted to RM57.8 million as at end-June, down from RM95.4 million a year earlier. Its trade payables rose to RM33.26 million from RM24.6 million previously.

Its cash and cash equivalents totalled RM541.6 million, versus long-term loans and borrowings of RM1.34 billion and short-term borrowings of RM853.06 million. This raises the question of where the more than RM200 million owed to JPJ is reflected in Zetrix AI’s books.

The news that Zetrix AI owes the government more than RM200 million, coupled with its suspension as a collection agent, throws cold water on the notion that all is well at the company.

Notably, the bulk of the company’s revenue was derived from blockchain and AI-related services over the past two years. For the financial year ended Dec 31, 2025 (FY2025), its blockchain and AI-related revenue had expanded to RM643.5 million from RM362.8 million a year earlier.

Its annual revenue grew to RM1.33 billion in FY2025 from RM707.6 million in FY2024, while net profit was lower at RM707.6 million, against RM870 million in FY2024.

For the first six months ended June 2026, Zetrix AI chalked up a net profit of RM540.58 million on revenue of RM813.01 million. In the previous corresponding period, it registered a net profit of RM380.79 million on revenue of RM607.88 million.

For now, Zetrix AI will have to count on its blockchain and AI division as its main revenue stream, following its suspension as a collection agent for JPJ.

The sale of digital tokens is one of the company’s sources of income. As at June 30, its digital assets had grown to RM532.88 million from RM376.6 million a year earlier.

Meanwhile, the company’s RM2 billion sukuk issued in November 2022 is another cause for concern. Rating agency MARC Ratings Bhd placed the Islamic bonds on MARC Watch Developing, amid concerns about a substantial reduction in the shareholding of co-founder and managing director Wong Thean Soon, better known as T S Wong.

Wong’s shareholding shrank to 10.6%, according to the latest filing with Bursa Malaysia, from 29.25% in early April. The drop had been triggered by margin calls, following the plunge in Zetrix AI’s share price.

The share price tumbled by two-thirds in five trading days from 66 sen on Aug 26 to 22 sen on Sept 2. After a short-lived rebound, it halved to 11.5 sen last Friday.

MARC’s report says one of the bond covenants requires Wong, as key shareholder, to remain the issuer’s single-largest shareholder. Specifically, the issuer must ensure that he does not sell, transfer or otherwise dispose of his shares in a way that results in his ceasing to be, directly or indirectly, the single-largest shareholder without the consent of the sukuk holders.

While sources close to Wong do not rule out the possibility that his entire stake will be forced sold, as he appears unable to top up his margin financing accounts, they contend that Zetrix AI needs him at the helm as he has charted the company’s direction.

The first tranche of the RM2 billion sukuk issue was for RM100 million. It was undertaken on Nov 21, 2022, and will mature in five years on Nov 19, 2027. A second tranche of RM50 million was issued on Nov 28, 2022, and will mature on Nov 26, 2027. Yet another tranche was issued on Jan 17, 2023, for RM100 million and will mature on Jan 17, 2028.

 This means Zetrix AI will need RM250 million to redeem its Islamic debt paper between November 2027 and January 2028. A default of the sukuk will trigger a Practice Note 17 classification.

It is understood that a meeting took place last week between the sukuk holders and Zetrix AI’s executives and top brass but there was no concrete outcome. “The bond holders do not know what to do,” says a source, who spoke on condition of anonymity.

Zetrix AI spent RM3.7 billion in about three years to develop its blockchain and AI-related business in the hope of riding the global AI boom. Will the company be able to convince the market that the whopping development cost of RM3.7 billion has been well spent? 

Read also:
Cover Story 2: Insights into margin calls on Zetrix’s Wong
Cover Story 2: Where did Excel Force’s RM26.6 mil go?

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