Troubled UMNO-linked firm Zetrix owes Malaysian government over $63 million in collections: Source
Zetrix’s issues reflect broader problems with UMNO-linked entities owing the government money.
Source: Straits Times Asia · October 2, 2026 at 3:02 AM · AI-assisted report
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KUALA LUMPUR, 2 OCTOBER 2026 —
KUALA LUMPUR — Zetrix AI, a Malaysian technology firm with deep historical ties to the United Malays National Organisation (UMNO), is believed to owe the government more than RM200 million (S$63 million) in unremitted collections from the Road Transport Department (RTD).
Market Impact
Official documents reviewed by The Straits Times indicate that the company failed to hand over funds collected for vehicle road tax renewals, driving licenses, and traffic summonses from the inception of its three-year contract in May 2023. The revelation underscores a persistent pattern of financial irregularities involving entities linked to UMNO, which remains a key component of Prime Minister Anwar Ibrahim’s multi-coalition government.
The scale of the outstanding debt has prompted the Transport Ministry to consider its next steps, balancing the need for a more reliable digital payment system with the imperative to recover the owed funds.
A government official, who requested anonymity due to the political sensitivity of the matter, stated that as of the end of September, the amount outstanding was "well over RM200 million." The official noted that the ministry is currently mulling how to proceed, aiming to ensure a robust digital infrastructure while securing the repayment of the significant sum held by the firm.
Zetrix, formerly known as MyEG, has long been a central figure in Malaysia’s digital government services landscape. Originally appointed in 2000 to provide digital counter services for agencies such as the RTD and the Immigration Department, the company generated billions of ringgit over the years. Its current executive chairman, Norraesah Mohamed, is a former UMNO supreme council member and senator, reinforcing the firm’s political connections.
However, the company’s reputation took a sharp turn in late August when former human resources minister Saravanan Murugan was charged with corruption. Although Zetrix has denied any links to the leader from UMNO’s Barisan Nasional coalition, the incident coincided with a precipitous decline in its share price.
The financial distress of Zetrix is starkly reflected in its market performance. Listed on Bursa Malaysia in 2025, the firm was once a darling of the stock market as a pioneer in online government transactions. At its peak in 2018, it boasted a market capitalisation exceeding RM10 billion. By early 2026, its valuation had already dropped to over RM6 billion.
The situation deteriorated significantly in August, when the market capitalisation began a sharp decline, falling to just over RM1.2 billion currently. This represents roughly a fifth of its initial valuation, with the share price closing at RM0.165 on October 1, down approximately 80 per cent since the start of the year.
The aggressive sell-down of Zetrix shares was primarily triggered by margin calls on pledged shares used as collateral for financing. This personal leverage unraveled against a backdrop of surging corporate debt. Zetrix’s borrowings have climbed to RM2.2 billion, nearly 14 times the RM160 million recorded five years ago. Its net debt, after accounting for cash and cash equivalents, now stands at RM1.65 billion, more than 23 times the RM71 million in 2021.
Consequently, managing director and largest shareholder Wong Thean Soon was forced to divest nearly two-thirds of his 29 per cent stake, the bulk of which was pledged, since August 27.
The company’s financial trajectory has been complicated by the loss of its monopolistic contracts following UMNO’s defeat in the 2018 general election, the first time the party lost power since independence. The uncertainty surrounding its future contracts shook the company, leading to a strategic pivot toward new technology businesses, including artificial intelligence. Its blockchain technology now powers MyDigital ID, the national digital identity management platform.
In February, the World Bank Group, through its private sector arm the International Finance Corporation, took an RM156 million stake in Zetrix to support the development of these technologies.
Despite this strategic shift, external auditors have raised serious concerns about the company’s financial health. They have flagged soaring development costs as a "key audit matter," highlighting the risk associated with figures that have topped RM3.7 billion. This amount represents more than half of the company’s total assets of RM6.7 billion, a dramatic increase from less than RM200 million in 2020.
The auditors’ warnings underscore the growing disparity between Zetrix’s ambitious technological investments and its deteriorating balance sheet.
The current contract with the RTD, which expired in May, has further altered the company’s market position. Customers are now able to choose between using the MyEG platform or the department’s own digital gateways, ending Zetrix’s exclusive hold on these services. This loss of monopoly status, combined with the financial scandals and debt crisis, has eroded investor confidence.
The firm’s inability to remit collected funds to the government, despite its history of handling billions in transactions, has raised questions about its operational integrity and financial management.
Zetrix is not the only UMNO-linked entity to have faced allegations of owing money to the government. The National Feedlot Corporation, for instance, received a RM250 million loan from the government in 2007 to initiate a project to transform the local beef industry. However, significant sums were instead used to purchase properties, including a luxury apartment in Kuala Lumpur.
In 2023, a court ordered the company, controlled by the family of former UMNO women’s chief Shahrizat Jalil, to repay RM34 million and handed over properties as well as RM87 million previously seized to the government. These precedents highlight a recurring theme of financial mismanagement and political entanglement within UMNO-linked entities.
The Transport Ministry’s deliberations on how to handle the Zetrix debt are expected to be closely watched by investors and the public. The ministry’s decision will likely influence the future of digital government services in Malaysia, as it seeks to ensure both efficiency and accountability. The case of Zetrix AI serves as a stark reminder of the challenges facing the transition from politically connected monopolies to competitive, transparent digital ecosystems.
As the government moves forward, the recovery of the RM200 million and the establishment of a reliable payment system remain critical priorities.
The situation with Zetrix AI reflects broader issues within the Malaysian political and economic landscape, where the intersection of politics and business continues to pose risks to public funds and market stability. The company’s decline from a market leader to a financially distressed entity illustrates the consequences of over-leverage, loss of monopoly, and governance failures.
For the Malaysian government, the priority is to recover the owed funds while ensuring that the digital infrastructure serving citizens remains robust and secure. The outcome of the Transport Ministry’s next steps will be a significant test of its ability to manage these complex challenges.