MBSB Investment Bank has placed its recommendation and target price for Zetrix AI Bhd (ZETRIX) “Under Review” following the suspension of the company’s JPJ-related business by the Ministry of Transport (MOT) through the Road Transport Department (JPJ).
The suspension, effective 5 October 2026, stems from Zetrix and My EG Sdn Bhd’s failure to transfer government revenue collected on JPJ’s behalf within the required period.
As of 30 September, the outstanding amount had reached RM314 mil, relating to collections dating back to 19 May 2026.
MOT and JPJ have held four engagement sessions with stakeholders, including the Ministry of Finance, and issued 35 reminder notices before setting a deadline for settlement.
They are also prepared to take legal action to recover the outstanding government revenue.
While the suspension does not affect the availability of JPJ services, users can instead make payments through MyJPJ, the JPJ Public Portal, counters, kiosks and other designated channels.
This creates a longer-term risk that Zetrix’s role as a third-party collection agent could diminish.The report says the resumption of Zetrix’s JPJ services remains uncertain.
The company must first clear the arrears before discussions on resuming operations can begin, and any future arrangement could require government revenue to be credited immediately.
Zetrix has submitted a proposal to resolve the outstanding remittances and is working to restore the affected services, subject to approval.
MBSB also highlights Zetrix’s financial position as a concern.
As of quarter two financial year 2026, the company had RM541.6mil in cash and cash equivalents, compared with RM853.1mil in short-term loans and borrowings, raising concerns over its ability to settle the arrears in the near term.
Further concerns were raised by MARC, which revised Zetrix’s MARCWatch status to “negative” from “developing”, citing transparency, governance and insufficient information about borrowings and development expenditure.
Recent adverse developments include the resignation of its external auditor, payment arrears and suspension of operations.
MBSB has left its earnings forecasts unchanged for now, noting that non-AI/blockchain revenue accounts for about 40% of group revenue, but says the impact on financial year 2026 and subsequent earnings remains difficult to assess.—Oct 6, 2026
Main image: Zetrix
