Zetrix AI tumbles 33pct, closes at 11 sen

Zetrix AI Bhd shares plummeted by 33 percent on Friday, closing at 12 sen, following a report that the company owes the government over RM200 million in unremitted collections. The stock had opened at 16.5 sen on Thursday and had reached a low of 10 sen intraday, becoming the most actively traded stock on Bursa Malaysia with approximately 922 million shares changing hands.

The decline followed a Straits Times report stating that Zetrix AI owes more than RM200 million in road tax, licence renewal fees, and summonses collected since its three-year contract with the Road Transport Department (RTD) began in May 2023. The RTD subsequently confirmed the outstanding amount.

Zetrix AI, formerly known as MyEG Services Bhd, was a pioneer in offering online government services through its partnership with RTD. The stock experienced significant selling pressure starting on August 28, plummeting 50 percent to 29.5 sen amidst heavy trading. Since then, it has remained one of the most actively traded counters on Bursa Malaysia.

The latest selloff has reduced the company's decline from its peak of 89.5 sen on April 21 by about 88 percent, while its market capitalisation has plummeted sharply from earlier this year.

The sustained pressure has also affected the managing director, Wong Thean Soon, whose stake in the company has dwindled from more than 30 percent at the end of August to 10.6 percent as of Thursday. Earlier this week, Zetrix AI announced that its external auditor, TGS TW PLT, had resigned due to portfolio rationalisation and resource management.

The company said it would appoint a new auditor in due course. Furthermore, Zetrix AI and My E.G. Sdn Bhd have been suspended as RTD's collection agents starting October 5. The suspension covers services previously provided by MYEG, such as road tax renewals, driving licence renewals, and summonses-related services. RTD stated that its services will continue through official and alternative channels.