Zetrix AI Admits It Cannot Repay RM2 Billion Sukuk

KUALA LUMPUR: Zetrix AI Bhd has admitted that it is unable to repay the entire RM2 billion outstanding under its sukuk programme and has proposed amendments to the covenants governing the Islamic debt papers, The Edge reported. Discussions with sukukholders are ongoing.

According to Business Today, Zetrix AI said it does not currently have the financial capacity to repay the full amount. The company has also proposed being allowed to charge up to 10% of its net assets as security for financing facilities, with the proceeds deposited into an escrow account to meet sukuk repayment obligations.

JPJ revenue hit

The suspension of its role as a collection agent for the Road Transport Department (JPJ) is expected to cut revenue by about 15%, based on JPJ’s contribution as at end-2025, and the company expects a direct hit to profitability, The Edge reported. Its proposal to settle outstanding remittances to JPJ remains under government evaluation.

Zetrix AI and its subsidiary MyEG Sdn Bhd were suspended as JPJ collection agents from Oct 5. Transport Minister Anthony Loke was reported as saying the arrears amounted to RM314 million for the period from May to September 2026.

Tax dispute

The company said it would contest an additional RM353.13 million in income tax imposed by the Inland Revenue Board, arising from disputes over transfer pricing and deemed interest for the assessment years 2021 to 2023.

Sukuk troubles

On Nov 10, Zetrix AI confirmed to Bursa Malaysia that it still owed RM25 million due on Nov 6 for Series No 6 of its sukuk programme, The Edge reported. MARC Ratings downgraded the RM2 billion programme to a default rating of D-IS after the missed payment.

The sukuk programme is undergoing a dissolution event caused by a breach of a covenant requiring managing director Wong Thean Soon to remain the company’s single largest shareholder.

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