HeiTech Padu ends its partnership with Zetrix AI on Malaysia’s NIISe project

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HeiTech ends NIISe partnership

Highlights

HeiTech Padu and Zetrix AI mutually agreed to end their teaming arrangement for the NIISe-related IT project, with the latest agreement expiring without a specific end date being announced.
The NIISe contract won by HeiTech Padu in October 2024 increased in value from RM892.2 million to RM1.05 billion to modernise Malaysia’s immigration system.
Zetrix AI disposed of its entire 16.9% stake in HeiTech Padu, comprising 27.5 million shares estimated to be worth RM27.5 million in September, before HeiTech shares closed at 90 sen.

This article was translated from the original. Read the original version by our correspondent here.

Company explains the agreement’s status

As reported by The Edge Malaysia, citing a filing with Bursa Malaysia, HeiTech Padu clarified the status of its partnership with Zetrix AI on Thursday after both parties mutually agreed not to extend their teaming agreement.

The company said the agreement, signed in April 2024, was established as a temporary arrangement to explore opportunities in providing information technology services in Malaysia, and was valid for one year. An addendum signed in August 2025 set out each party’s roles and responsibilities, with Zetrix AI providing front-end technology solutions and HeiTech Padu handling the back-end systems for jointly identified projects. According to the clarification, the teaming agreement has now expired, although the company did not specify exactly when it ended.

The clarification follows an Oct. 26, 2026 report stating that the proposed partnership had not materialised and that the agreement had expired. In a filing in August 2025, Zetrix AI had previously said that immigration-related services under NIISe were provided through its commercial arrangement with HeiTech Padu.

Project and corporate implications

HeiTech Padu secured the NIISe contract in October 2024, initially valued at RM892.2 million, before its value was increased to RM1.05 billion. The project aims to modernise Malaysia’s immigration system by integrating immigration and border control services into a single platform, replacing the legacy system used by the Immigration Department.

The latest development also comes after Zetrix AI disposed of its entire 16.9% stake in HeiTech Padu, comprising 27.5 million shares, through a direct business transaction in September for an estimated RM27.5 million. HeiTech Padu shares closed unchanged at 90 sen on Thursday, giving the company a market capitalisation of RM146.7 million.

In our earlier report on HeiTech’s extension of the MyIMMs maintenance contract Padu, we explained how the legacy immigration system contract continued to be extended to ensure smooth operations during the transition to the new NIISe platform. We also highlighted that the extension went beyond the NIISe rollout timeline and linked it to the increase in the NIISe contract value to RM1.05 billion and its impact on the company’s position.

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