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Commentary: Zetrix’s financial collapse poses a major governance test for Anwar’s government
Zetrix AI’s financial crisis is testing how Malaysia’s government manages private companies that collect money for public services. The company’s share price has fallen by more than 90 per cent since August, raising questions about the risks of a privatisation model that can leave the state exposed when a contractor falters.
The government says Zetrix owes the Road Transport Department more than RM314 million in collections from May 19 to September 30. The company also faces a dissolution event under its RM2 billion sukuk programme after breaching a shareholder-related covenant, though it says full immediate repayment is not required and scheduled payments have been made. Formerly known as My EG Services, Zetrix began with a 15-year concession for online road tax and summons services, then expanded into other government services and overseas markets.
In short
- Zetrix shares have lost more than 90 per cent since August.
- The company owes Malaysia’s Road Transport Department over RM314 million.
- Its crisis raises questions about private delivery of public services.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
A private concession can bring investment, technology and operating expertise that government agencies may lack, while allowing public services to expand without the state building every system itself. The government’s response to Zetrix can be judged on whether it protects public funds and service continuity while applying contracts and financial rules consistently, rather than treating one company’s troubles as proof that the model cannot work.
The case against
When a private contractor collects money for public services, financial distress can put public funds and essential services at risk, while leaving the state to manage the consequences. Zetrix’s reported unpaid collections and covenant breach may therefore expose weaknesses in oversight and contingency planning, and the company’s expansion across government services could make those risks harder to contain.
Explained simply
Zetrix AI, formerly called My EG Services, is a Malaysian company that runs online services for the government. It began with a 15-year concession to handle road tax and traffic summons services, and later expanded into other public services and overseas markets.
The Road Transport Department is the government agency responsible for vehicle and driving matters. Zetrix collects money for some of its services and is expected to pass those collections to the department; the government says more than RM314 million collected between May and September remains outstanding.
The case matters because it raises questions about how public services are managed when private companies collect money on the state’s behalf. Zetrix also has a large sukuk programme, a form of Islamic financing, with a covenant breach that could affect its obligations to investors.
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