The deepening financial distress at Zetrix AI has wiped out more than RM5 billion in market capitalisation following a severe share price drop since August. The crisis extends directly to public coffers, as the firm failed to remit over RM314 million in collected road tax and licensing fees to the Road Transport Department. Furthermore, a covenant breach has triggered a dissolution event under its RM2 billion sukuk programme, intensifying regulatory scrutiny on the nation's broader privatisation framework.
Key points
The market crash represents the largest loss of listed equity wealth under Malaysian Prim…: The market crash represents the largest loss of listed equity wealth under Malaysian Prime Minister Anwar Ibrahim's leadership.
The firm's distress highlights significant state financial exposure caused by delegating…: The firm's distress highlights significant state financial exposure caused by delegating core public revenue collection to private concessionaires.
Company management remains in ongoing discussions with sukukholders, asserting that sched…: Company management remains in ongoing discussions with sukukholders, asserting that scheduled debt obligations have been satisfied without requiring immediate repayment.
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A deepening financial crisis at Zetrix AI, a provider for digital government services, is presenting the Anwar Ibrahim administration with a governance dilemma, writes CNA’s Leslie Lopez.
KUALA LUMPUR: Every so often, Malaysia’s privatisation programme – an ambitious crown jewel in former Prime Minister Mahathir Mohamad’s economic agenda – produces a failure spectacular enough to reopen the whole question on its merits.
The unfolding crisis at Zetrix AI, formerly known as My EG Services, threatens to become one such moment.
Since August, the shares of the company listed on the local stock exchange have collapsed by more than 90 per cent, wiping out more than RM5 billion (US$1.23 billion) in market capitalisation, making it the largest destruction of listed-market wealth of the Anwar Ibrahim prime ministership.
But the collapsing stock price, which now hovers at around 6 sen from over 70 sen then, is only part of the story.
Zetrix was not created through the sale of a state-owned enterprise, nor can its current financial difficulties be attributed to a single government policy. But its original business model represents a…
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