Zetrix owes JPJ RM314m from May to September this year, says Loke

PUTRAJAYA, 5 OCTOBER 2026 —

PUTRAJAYA, Oct 5 (Reuters) – Transport Minister Anthony Loke Siew Fook announced on Monday that Zetrix AI Bhd (KL: ZETRIX) and its subsidiary MyEG have been suspended from the Ministry of Transport’s three‑year contract after the companies failed to remit collections amounting to RM 314 million for the period May to September 2026.

Zetrix, formerly known as MyEG Services Bhd, has been the primary private collection agent for JPJ services since 2000. Under its latest three‑year contract that began in May 2023, the company has been responsible for collecting fees for vehicle road‑tax renewals, driving‑licence renewals and traffic‑summons payments on behalf of the government. The contract also gave Zetrix the right to process payments through its MyEG platform and other digital channels.

According to Loke, the RM 314 million owed to JPJ represents collections that were not remitted for the five‑month period from May through September 2026. The minister said the ministry and JPJ had taken “drastic steps” to suspend payment services using MyEG and Zetrix AI channels effective that day, after the companies failed to meet the settlement deadlines despite the extensive reminders.

In September 2026, Zetrix presented the government with a cheque for RM 231 million, which the company claimed would settle the arrears at that time. Loke explained that the cheque was not processed by the bank because Zetrix instructed the bank not to honour it when the cheque was credited on 30 September 2026. The minister said the failure to process the cheque left the arrears unresolved and forced the ministry to act.

Loke noted that JPJ continues to work with other collection agents, including Pos Malaysia Bhd (KL: POS), which serves rural areas. “Other agents have no issues,” he said, adding that the latest checks confirmed there were no arrears from any other agent. The minister’s remarks underscored that the problem was confined to Zetrix and its subsidiary.

The Ministry of Transport will now refer the matter to the Ministry of Finance and other relevant agencies to determine the next course of action, which may include civil proceedings. Loke said the government will continue to pursue the outstanding amount and that resumption of Zetrix’s services will not be considered until the arrears are fully settled.

Even if the companies were to clear the debt, the minister warned that additional conditions would be imposed, such as requiring all future payments to be directly credited into the government’s account.

The minister also clarified that the contract contains no compensation clause should the government decide to terminate the agreement. “There is also no compensation clause if the government decides to terminate the contract,” Loke said, indicating that the government retains the right to end the partnership without financial penalty to the state.

The suspension affects a range of JPJ services that have been processed through Zetrix’s digital platforms, including road‑tax renewals, licence renewals and traffic‑summons payments. While the ministry did not disclose the number of transactions impacted, the scale of the arrears suggests a significant volume of public payments has been affected.

The decision to suspend Zetrix’s services comes after the ministry’s repeated attempts to resolve the issue through stakeholder engagement and formal notices. Loke’s briefing highlighted that the 35 reminder notices were sent with specific deadlines, yet the company failed to comply. The minister’s description of the steps taken as “drastic” reflects the seriousness with which the government views the breach of contract and the potential risk to public revenue collection.

The Ministry of Transport’s next steps will involve coordination with the Ministry of Finance to assess the legal and financial implications of the breach. Loke indicated that the ministry is exploring all available avenues, including possible civil action, to recover the outstanding funds.

The minister did not specify a timeline for any legal proceedings, but emphasized that the government will not restore Zetrix’s payment channels until the arrears are cleared and the new conditions are met.

The suspension also raises questions about the continuity of JPJ’s digital payment services, especially in urban areas where Zetrix’s platforms have been the primary channel. While Pos Malaysia continues to operate in rural regions, the minister did not elaborate on any interim measures to ensure uninterrupted service for urban users. The focus, however, remains on recovering the RM 314 million and securing future payments through direct government accounts.

Zetrix’s failure to remit the collections and the subsequent suspension of its contract illustrate the challenges faced by the Malaysian government in managing private‑sector partnerships for public‑service delivery. The incident underscores the importance of robust oversight mechanisms and the need for clear contractual safeguards to protect public revenue.

The ministry’s statement concluded with a firm stance: Zetrix’s services will remain suspended until the full arrears are settled, and any future engagement will be subject to stricter payment controls. Loke’s remarks left open the possibility of further action, including contract termination, but affirmed that the government will continue to pursue the outstanding amount through all appropriate channels.

Related: Ministry of Transport · Putrajaya