Zetrix AI faces revenue risk after suspension of its JPJ collection role

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Zetrix AI faces JPJ risk

Highlights

JPJ suspended Zetrix AI and MyEG Sdn Bhd as collection agents effective 5 Oct after they failed to pay more than RM200 million to JPJ since May 2023.
Its main revenue now depends on the blockchain and AI segment, whose revenue rose to RM643.5 million in the financial year ended Dec 2025, although net profit fell to RM707.6 million.
The RM2 billion sukuk is under MARC Watch Developing following the decline in T S Wong's shareholding to 10.6%, and the company must provide RM250 million for redemption between Nov 2027 and Jan 2028.

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

JPJ suspension and current financial position

As reported by The Edge Malaysia, the Road Transport Department said in a statement that Zetrix AI and its wholly owned unit, MyEG Sdn Bhd, were suspended from their roles as collection agents effective 12.01am on 5 Oct after taking into account compliance with the terms and conditions of the agreement, as well as obligations that remain unfulfilled or unresolved.

The suspension covers collections for road tax renewals, driving licence renewals and traffic summonses, potentially affecting the company's revenue. The development follows Zetrix AI's failure to remit more than RM200 million owed to JPJ, comprising payments collected for road tax renewals, driving licences and traffic summonses since May 2023, when its contract to provide e-government services was renewed.

As at the end of June, the company reported cash and cash equivalents of RM541.6 million, compared with long-term borrowings and financing of RM1.34 billion and short-term borrowings of RM853.06 million. Other receivables and accruals totalled RM57.8 million, down from RM95.4 million a year earlier, while trade payables rose to RM33.26 million from RM24.6 million, raising further questions over how the amount owed to JPJ is recorded in the company's books.

Focus on blockchain, AI and sukuk pressure

Zetrix AI must now rely on its blockchain and AI divisions as its main sources of revenue following the suspension. For the financial year ended 31 Dec 2025, blockchain- and AI-related revenue grew to RM643.5 million from RM362.8 million a year earlier, helping annual revenue rise to RM1.33 billion from RM707.6 million, although net profit declined to RM707.6 million from RM870 million in FY2024.

For the first six months ended June 2026, the company recorded net profit of RM540.58 million on revenue of RM813.01 million, compared with net profit of RM380.79 million on revenue of RM607.88 million in the same period previously. Digital token sales also became a source of revenue, with digital assets rising to RM532.88 million as at 30 June from RM376.6 million a year earlier.

At the same time, the RM2 billion sukuk issued in November 2022 has added fresh concerns. MARC Ratings Bhd placed the Islamic bonds under MARC Watch Developing following concerns over the significant reduction in the shareholding of co-founder and managing director Wong Thean Soon, or T S Wong, which fell to 10.6% from 29.25% in early April after a margin call as the share price plunged.

The MARC report stated that one of the bond covenants requires Wong to remain the issuer's single largest shareholder. The first three sukuk tranches, totalling RM250 million, mature between November 2027 and January 2028, meaning the company must set aside RM250 million for redemption during that period, and failure to pay would trigger a Practice Note 17 classification.

According to sources cited in the report, a meeting took place last week between sukuk holders and Zetrix AI's senior management, but no concrete outcome was reached. With the company having spent around RM3.7 billion over about three years to develop its blockchain and AI businesses, the market is now assessing whether those substantial investments can support confidence in the group's financial position.

In our earlier report on the police investigation into MyEG Sdn Bhd and Zetrix AI Bhd, we discussed how complaints received over collections made on behalf of JPJ that were not handed over led to a review by the authorities. We also highlighted the suspension of both companies as JPJ collection agents, the market reaction including the share price decline, and the reduction in TS Wong's stake due to forced selling.

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