17 hours ago
- Business
- New Straits Times
Zetrix AI widens Asean footprint to reduce political and revenue risk
KUALA LUMPUR: Zetrix AI Bhd, formerly MyEG Services Bhd, is ramping up expansion across Southeast Asia to reduce reliance on government contracts, said managing director TS Wong.
He said the shift is also aimed at shielding the company from political risk, a move that signals how Malaysian tech firms are adapting to volatile policy environments.
"We're very aware of the importance of revenue diversification," Wong told Business Times in an exclusive email interview.
"Beyond our government-related services in Malaysia, we've expanded into international markets and private-sector solutions, particularly through Zetrix."
Zetrix, the company's blockchain-powered platform, has already become the group's largest revenue contributor.
For the first quarter ended March 31, 2025, the group's revenue jumped 28.8 per cent year-on-year to RM299.99 million, while net profit rose 16.2 per cent to RM181.57 million.
This was largely driven by contributions from Web3 application service fees on the Zetrix blockchain including ZTrade, ZCert and Digital ID registration and transactions, as well as from the sale of Zetrix tokens.
Zetrix tokens are utility tokens used to power core services on the Zetrix blockchain, such as verifying trade documents and digital identity.
According to its latest financial report, without a RM15.76 million impairment loss related to its investment in HeiTech Padu Bhd, Zetrix AI's operating profit would have been higher.
Zetrix supports critical applications such as digital credential verification and real-time verification of trade documents, solutions increasingly adopted by private businesses and foreign government agencies.
Wong said the company is now targeting cross-border trade and digital identity services in the Philippines and Singapore, with expansion plans in Indonesia.
The platform is already integrated with China's General Administration of Customs (GACC) and has been adopted by the Philippines Bureau of Customs and its technology partner, Cargo Data Exchange Center Inc.
Reducing concentration risk
Zetrix AI's strategy focuses on embedding Zetrix into regional trade and regulatory infrastructure.
This is key to reducing the company's historical reliance on Malaysian e-government contracts, which has long been a concern among investors, Wong said.
Its emphasis on government-to-government (G2G) projects is a key part of this diversification.
Unlike traditional contracts tied to a single administration, Wong said these multilateral projects are "inherently more stable" and less exposed to domestic political shifts.
An example is the company's partnership with East Logistic Link Co, a unit under GACC, to develop a blockchain-based National Single Window for Asean countries.
The project enables paperless cross-border trade documentation and identity verification for businesses and regulators alike.
"These are real-world applications used by enterprises and government agencies, and they generate consistent, utility-based revenue," Wong added.
Setback, not derailment
Despite the impairment charge on its investment in HeiTech Padu, linked to a mark-to-market revaluation of listed shares, Zetrix AI has reaffirmed its commitment to the partnership.
The impairment was "not a reflection of any issues within the collaboration itself," Wong said, citing the company's ongoing work with HeiTech Padu and Huawei Malaysia to develop artificial intelligence (AI)-enabled smart government services.
He added the financial setback has not derailed the company's broader Asean ambitions.
Through the Asean China AI Lab, a flagship Malaysia-China G2G initiative, Zetrix AI is now developing advanced AI and robotics applications tailored to regional needs.
Strategic edge through localisation
The company is banking on Chinese-built technologies for Asean markets, including robotic automation to reduce reliance on foreign labour in Malaysia's manufacturing sector.
Wong said this localisation strategy, combined with its early move into blockchain-backed services, supports Zetrix AI's regional push in digital infrastructure.
"We are enabling next-generation services such as Agentic AI, cross-border identity verification and trade automation with Zetrix," he added.
"These innovations are already being deployed and are designed to be replicated across borders."
The company's focus now is on scaling further in high-growth Asean markets, where digital transformation remains a top government priority.
