Malaysia

RM314m unpaid revenue : Government to sue Zetrix as collection contract terminated

Transport Minister Anthony Loke says the government is pursuing legal action after a RM231 million cheque submitted to settle part of the outstanding collections could not be cashed

Updated 1 hour ago · Published on 27 Oct 2026 5:48PM

RM314m unpaid revenue : Government to sue Zetrix as collection contract terminated
Loke says JPJ issued 35 reminder notices, held four engagement sessions and conducted special discussions between May 19 and Oct 4 to demand payment - October 27, 2026

THE government will pursue legal action against Zetrix AI Bhd over RM314 million in Road Transport Department (JPJ) collections that were not remitted, after efforts to recover the money included a RM231 million cheque that could not be cashed, Transport Minister Anthony Loke Siew Fook said.

Winding up the Budget 2027 debate in the Dewan Rakyat today, Loke said the failure to transfer the funds was a serious breach of contract, stressing that government revenue collected by private agents must not be used to finance their operating expenses.

JPJ terminated the appointments of Zetrix and MyEG as revenue collection agents effective Oct 5 and lodged a police report on Oct 7.

Loke said JPJ had issued 35 reminder notices, held four engagement sessions and conducted special discussions between May 19 and Oct 4 to demand payment.

MyEG had submitted a cheque dated Sept 30 for RM231 million, drawn on RHB Bank Bhd, to settle collections outstanding up to Aug 17. However, the cheque could not be cashed, he said.

Under the collection arrangements, electronic government revenue must be transferred to government accounts by 4pm on the next working day after each transaction, under the T+1 requirement. Agents that miss the deadline face daily late-transfer penalties under their agreements and Ministry of Finance instructions.

Loke said all outstanding amounts, including penalties, must be fully settled before any extension or further operational approval could be considered.

Zetrix, formerly known as MyEG Services Bhd, has provided online processing services for JPJ transactions, including road tax and driving licence renewals, since 2000. Its latest three-year contract began in May 2023.

To reduce the risk of future revenue losses, JPJ is upgrading its MySIKAP portal and MyJPJ super app to reduce reliance on third-party agents.

The ministry is also discussing with the Finance Ministry and the Accountant General’s Department a mechanism to channel government revenue directly into government accounts without passing through third-party accounts.

Other proposed safeguards include automatically halting transactions if an agent fails to transfer collections within 10 days and requiring collection agents to provide guarantees from their parent companies. - October 27, 2026

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