Zetrix owes over RM200 million to Malaysian government
Zetrix AI faces financial crisis as it owes over RM200 million to the Malaysian government for unremitted road tax and licensing collections. The company's stock has plummeted, leading to leadership divestment and government scrutiny.
Why it matters
The failure of a major government digital services contractor raises concerns about the reliability of public-private partnerships and digital infrastructure management.
Wong Thean Soon, group managing director of Zetrix AI, has been forced to divest nearly two-thirds of his 29 per cent stake – the bulk of which was pledged – since Aug 27.
Listen Summarise Zetrix AI owes over RM200 million to Malaysia's Road Transport Department for unremitted collections since its contract began in May 2023, raising concerns over payment reliability. Once a market leader with a peak valuation over RM10 billion, Zetrix's share price dropped 80% due to rising debts and loss of government contracts. The company shifted focus to AI and blockchain, attracting a RM156 million investment from the World Bank, but faces financial risks amid soaring development costs and heavy borrowings. AI generated
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