Zetrix AI extends decline to lowest in more than a decade

KUALA LUMPUR, 5 OCTOBER 2026 —

KUALA LUMPUR, 5 Oct 2026 – Shares of Zetrix AI Bhd (KL: ZETRIX) slumped to a 13‑year low on Monday after the Ministry of Transport disclosed that the digital‑services firm owes the government an estimated RM314 million.

Zetrix AI has shed roughly 90 per cent of its market price since the sell‑down at the end of August, wiping out close to RM5 billion in market capitalisation. At the Monday close the company’s market value stood at about RM513 million.

Transport Minister Anthony Loke Siew Fook said the company will not be allowed to resume its services until the arrears are fully settled. He added that even if the debt is cleared, the government will impose additional conditions, requiring any future payments to be credited directly into a government account.

Loke also noted that the contract contains no compensation clause should the government decide to terminate the agreement, a point he reiterated at a press conference on Monday.

Analysts who cover Zetrix AI said they are still running the numbers, indicating that the full impact of the debt revelation on the firm’s valuation and future earnings remains under assessment.

The sell‑off in Zetrix AI spilled over to two other listed companies linked to Wong Thean Soon. Shares of Cuscapi Bhd (KL: CUSCAPI) fell by half a sen, or about 10 per cent, to 4.5 sen. Excel Force MSC Bhd (KL: EFORCE) dropped four sen, a 19.1 per cent decline, to 17 sen.

Wong holds a 10.49 per cent direct stake and a 2.94 per cent indirect stake in Cuscapi, which supplies point‑of‑sale hardware and software. He also owns a 7.23 per cent direct stake and a 7.77 per cent indirect stake in Excel Force, a software firm that provides a stock‑trading platform.

The market reaction to the Ministry’s announcement underscores the sensitivity of investors to government‑related credit exposures in the technology and digital‑services sector. Zetrix AI’s steep price fall, combined with the heightened trading activity, reflects heightened risk aversion among market participants following the disclosure of a substantial government debt.

The broader implications for the Malaysian equity market include heightened scrutiny of companies with significant government contracts and the potential for further volatility in stocks linked to key executives. The forced selling of Wong’s holdings earlier in September had already set a precedent for market participants to monitor insider positions closely, and the latest developments have amplified that focus.

With the Ministry of Transport signalling that any resumption of services will be contingent on full repayment and stricter payment controls, Zetrix AI faces an uncertain path to restoring investor confidence. The company’s ability to negotiate a settlement of the RM314 million arrears, and to meet any additional conditions imposed by the government, will be pivotal in determining whether its shares can recover from the current lows.

The latest episode adds to a series of recent setbacks for Zetrix AI, which saw its market capitalisation contract sharply after the August sell‑down. The firm’s current market value of RM513 million represents a fraction of its former size, and the outstanding debt to the government further constrains its financial flexibility.

As analysts continue to model the potential outcomes, market participants will be watching closely for any indication of a settlement or a revised contractual framework that could alter the company’s trajectory.