MalaysiaZetrix AI Suspended
Transport Minister Anthony Loke says the suspension of MyEG and Zetrix AI as collection agents for the Road Transport Department is based on financial facts, not political motives. The companies failed to transfer RM314 million in collected government revenue from May 19 to September 30.
Global Newsflix 2 min read
Transport Minister Anthony Loke has dismissed claims of a political motive behind the suspension of MyEG and Zetrix AI as collection agents for the Road Transport Department (JPJ).
Loke said the government's decision was based strictly on financial facts, and the companies' failure to transfer RM314 million in collected government revenue from May 19 to September 30 was the reason for the suspension.
The suspension took effect from 12.01am on October 5, and Loke expressed amusement at social media users calling for his resignation over the regulatory enforcement.
Zetrix AI owes the Malaysian government over RM200 million in unremitted collections since its contract began in May 2023, according to official documents.
The company's share price has dropped 80% due to rising debts and loss of government contracts, and it faces financial risks amid soaring development costs and heavy borrowings.
Loke stressed that his role as minister is to treat every company the same, and the fact that MyEG has alleged links to Umno is irrelevant to his decision.
The Transport Ministry is considering its next step, wanting a more reliable digital payment system while ensuring the money owed is paid up.
Key facts
- Zetrix AI and MyEG suspended as collection agents for JPJ
- RM314 million in collected government revenue not transferred from May 19 to September 30
- Zetrix AI owes the Malaysian government over RM200 million in unremitted collections
- The company's share price has dropped 80% due to rising debts and loss of government contracts
Three perspectives
Neutral
The suspension of Zetrix AI and MyEG has raised concerns about the reliability of digital payment systems in Malaysia. The Transport Ministry's next step will be closely watched. The government's decision is seen as a move to ensure accountability and transparency in the collection of government revenue.
Positive
The government's decision to suspend Zetrix AI and MyEG demonstrates its commitment to enforcing regulatory compliance and ensuring the integrity of digital payment systems. This move is expected to promote a more reliable and efficient payment system in Malaysia.
Negative
The suspension of Zetrix AI and MyEG has raised questions about the government's handling of the situation, with some calling for the minister's resignation. The company's significant debt and loss of government contracts have also raised concerns about its financial stability and ability to pay its debts.
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