Rafizi demands PM come clean on Zetrix AI losses, immigration system's future

Rafizi Ramli has urged Prime Minister Anwar Ibrahim to clarify details on Zetrix AI's financial crisis, arguing that the matter is of significant public interest.

The Bersama co-leader highlighted that no MP or political party has focused on the public interest implications following the share price collapse of the tech company, formerly known as MyEG Services Sdn Bhd.

This, the former economy minister said, is despite...

Rafizi Ramli has urged Prime Minister Anwar Ibrahim to clarify details on Zetrix AI's financial crisis, arguing that the matter is of significant public interest.

The Bersama co-leader highlighted that no MP or political party has focused on the public interest implications following the share price collapse of the tech company, formerly known as MyEG Services Sdn Bhd.

This, the former economy minister said, is despite the fact that GLICs, the Employees Provident Fund (EPF), the Retirement Fund Incorporated (KWAP), and Urusharta Jamaah Sdn Bhd (UJSB) held a “substantial amount” of the company’s shares.

Rafizi noted that based on publicly accessible financial reports, EPF and UJSB held 67.6 million and 211.5 million shares as of April 1, while KWAP held a 390 million stake as of Oct 2 last year.

While the public funds’ latest shareholdings are unknown for now pending the finalisation of Zetrix AI’s annual report for the 2025 financial year, Rafizi highlighted that the known holdings thus far raise concerns about potential losses.

“According to Zetrix AI’s own financial reporting, its closing share price on April 1 was 75.5 sen. By Oct 19, its share price had fallen to five sen - a dramatic decline of 93.4 percent over six months, with the sharp sell-off beginning on Aug 28.

“If these three public funds were still holding Zetrix AI shares when the sharp sell-off began on Aug 28, they may well have missed the opportunity to limit their losses and been left holding the shares until today,” Rafizi said.

In a statement today, he cautioned that if the above is proven true, EPF, KWAP and UJSB face potential losses of RM472 million, based on a decline of 70.5 sen per share.

As such, he stressed that as a “champion of good governance”, Anwar should explain how many shares EPF, KWAP, UJSB, as well as other GLCs such as Maybank, CIMB and others held on April 1.

Affirming that the disclosure is necessary to establish the extent of public fund exposure to Zetrix AI’s financial crisis, Rafizi also sought information on how many shares remained held by the government-linked entities to this day.

“How much consists of paper losses on shares still held, and how much consists of realised losses on shares sold between April 1 and Oct 20, measured against their original purchase costs?” he pressed.

Plunging shares

Zetrix AI’s shares had plunged by 50 percent in late August amid rumours that it was linked to former human resources minister M Saravanan's corruption charge in relation to the approval of foreign worker quotas for a local company in 2022. Zetrix has denied such links.

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Around the same time, shares in technology services provider HeiTech Padu Bhd, in which Zetrix AI held an indirect 16.9 percent stake via its wholly owned unit MYEG Capital Sdn Bhd, also plummeted by 30 percent.

Zetrix AI later announced its exit from HeiTech Padu via a direct business transaction on Sept 2, with MYEG Capital having sold its stake comprising 27.5 million shares.

Following Zetrix AI’s exit, the largest shareholder of HeiTech Padu is the Sultan of Kelantan, Sultan Muhammad V, who holds a 23.6 percent stake via his private vehicle, Rosetta Partners Sdn Bhd.

In his statement today, Rafizi pointed out that the exit has raised questions about the development of the National Integrated Immigration System (NIISe), for which an RM1.05 billion contract was awarded to HeiTech Padu to develop in 2024.

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He recalled that when HeiTech Padu won the contract, its two largest shareholders were Rosetta Partners, jointly controlled by the Kelantan sultan and businessperson Farhash Wafa Salvador Rizal Mubarak, and Zetrix AI.

HeiTech Padu, Rafizi said, also announced that Zetrix AI was its technology partner and would jointly develop the technology used in NIISe.

As such, he called for Anwar to state which company is providing the technology for NIISe following Zetrix AI’s disposal of its stake in HeiTech Padu, and what are the implications for the implementation of this national security project.

Farhash, a former political aide to Anwar, ceased to be a substantial shareholder of HeiTech Padu one month after acquiring a 15.9 percent stake via Rosetta Partners.

Under probe

On Oct 15, HeiTech Padu announced that it had secured a RM19.87 million contract extension from the Immigration Department to continue maintaining the Malaysian Immigration System (MyIMMs) for another two years.

According to a bourse filing, the contract will run from Feb 18, 2027, to Feb 17, 2029.

The extension came as Malaysia works towards implementing the NIISe, which is intended to replace the MyIMMs, which the nation has been using as its immigration platform since 1993.

On Oct 13, police opened an investigation paper into Zetrix AI and MyEG’s alleged failure to remit government revenue collections, with Transport Minister Anthony Loke saying that the firms failed to remit to the government RM314 million in revenue collected between May 19 and Sept 30.

READ MORE: Zetrix AI submits proposed solution to govt on RM314m outstanding remittances

Loke added that MyEG and Zetrix AI’s collection services were suspended after the companies failed to settle the outstanding amount despite receiving 35 reminders and being engaged by authorities since May.

For over two decades, Zetrix AI had provided online services linked to the Road Transport Department’s services, including collecting government revenue on behalf of the department and charging users convenience fees and delivery fees where applicable.