Zetrix AI Financial Troubles Malaysia: Inside the Share Crash

The Zetrix AI financial troubles Malaysia traders have followed since late August keep growing. First, the blockchain and AI services firm lost half its market value in one session. Then its founder kept selling shares to meet margin calls. Since then, a rating agency, a court and an auditor have all entered the story.

Zetrix AI Bhd is a Bursa Malaysia listed company that sells blockchain and artificial intelligence services. In fact, many Malaysians still know the group by its old name, MyEG, from its government e-services business.

On paper, the business looks healthy. For example, the company posted net profit of RM540.58 million on RM813.02 million of revenue in the first half of 2026, The Edge reported. Second-quarter revenue alone rose 38.6% to RM426.7 million.

So the trouble is not falling sales. Instead, it sits in the share register, the balance sheet and a string of corporate disputes.

The crash came on August 28, 2026. That day, Zetrix AI hit limit down, falling 30 sen to 29.5 sen. In other words, the stock lost half its value by noon, and more than 800 million shares changed hands.

Founder and managing director Wong Thean Soon, known as TS Wong, explained the selldown at an analyst briefing the same day. According to The Edge, he blamed margin calls on pledged shares, made worse by short selling.

Because Wong was the single largest shareholder, forced selling on his account hit the price hard. By early September, the stock had dropped about 75% from its end-July level.

Since then, Wong has kept selling. His combined stake once stood at 29.49%. After a sale dated September 30, it fell to 10.602%, according to The Edge.

In that latest trade, his vehicle Asia Internet Holdings sold 22.73 million shares at 16.2 sen each. That is worth about RM3.68 million. At around 16 sen, the whole company is now valued near RM1.33 billion.

Even so, Wong remains a major holder, with about 837 million shares. The open question is whether he can stay the largest one.

That question matters for the company’s debt. On September 18, MARC Ratings placed the AA-IS rating on Zetrix AI’s RM2 billion Islamic medium-term notes programme on MARCWatch Developing.

The reason is a covenant. Under it, the founder must remain the single largest shareholder. As a result, his shrinking stake narrows the buffer, MARC said. Meanwhile, the agency also flagged how fast spending and borrowing have grown.

Here is how the balance sheet changed, based on MARC’s figures as reported by The Star.

Next came a fight over money owed to shareholders. Zetrix AI declared a final dividend of 2.89 sen per share for 2025, tied to a dividend reinvestment plan.

However, a substantial shareholder went to court. The Edge identified him as Wong himself. He filed on September 11, and the Kuala Lumpur High Court sealed an interim injunction on September 15. His complaint was that some nominees had not carried out the reinvestment plan.

Consequently, the September 18 payout slipped. The company later admitted an incorrect computation that left a mismatch in its dividend account. It has since paid eligible holders, but money tied to the affected accounts stays on hold.

Then, at the end of September, the external auditor left. Zetrix AI’s board accepted the resignation of TGS TW PLT on September 28. The firm cited portfolio rationalisation and resource management.

Admittedly, the context softens the headline. Business Today reported that TGS TW has resigned from at least 14 Bursa listed companies, almost all for the same stated reason. The board also said it knew of no other matter shareholders should hear about.

Still, losing an auditor during a share crash and a rating watch is poor timing. Investors will watch who replaces the firm.

Overall, this is a governance and funding story more than an AI story. The operating numbers still look strong. Yet the group leans on borrowed money, and one covenant ties that debt to one man’s shareholding.

For now, three things matter. First, whether Wong stays the largest shareholder. Second, how MARC resolves its watch. Third, who signs off the next accounts.

Similar pressure is showing up across the sector. For a wider view, see why AI stocks are down today and how investors are testing heavy AI spending.

Big AI spending and big debt are a pattern well beyond Kuala Lumpur. Read how Oracle cut jobs to fund its AI spending, and what one veteran investor said about the AI sector market trend.

Sources

The Edge (stake sale), The Edge (dividend dispute), The Star (MARC watch), The Star (limit down), The Star (dividend delay), Business Today, Bernama. *Photos: Bursa Malaysia by Travelpleb, CC0, cropped and resized; Börse Kuala Lumpur by StagiaireMGIMO, CC BY-SA 4.0, resized and placed on a blurred background.*