THAT once a darling stock Zetrix AI Bhd (formerly My E.G. Services Bhd) has nosedived to its all-time low of 11.5 sen at the close of Friday’s (Oct 2) trading is nothing surprising given there were already “subtle red flags” prior to its explosive “over RM200 mil” owed to the Road Transport Department (JPJ).
This somehow eclipsed political noises with Madani critic Datuk Eric See-To wanting the head of Transport Minister Anthony Loke Siew Fook to roll for the unaccounted-for collection of vehicle road tax/driving licences renewals and traffic summonses since the start of its three-year contract in May 2023.
Interestingly, the Singapore Straits Times (SST) was credited for the damning exposé which eventually led to JPJ suspending services provided by My E.G. Sd. Bhd and Zetrix Al which operate under the MYEG Group as collection agents effective 12.01am on Oct 5 (Monday).
“This decision follows an assessment of compliance with the stipulated terms and conditions of the agreement as well as the status of outstanding obligations yet to be fulfilled or resolved by the companies concerned,” highlighted JPJ in a media statement.”
“In line with this decision, all JPJ services previously offered through MYEG Group channels will be suspended starting Oct 5.”
Although the SST exposé is seemingly the proverbial straw that broke the camel’s back, finfluencer Azam Sahri pointed to the issue of delayed dividend payments, legal intervention and even a query by market regulator Bursa Malaysia Securities Bhd that seasoned stock investors would deem as red flag signs.
“For traders who’re alert to corporate governance, this is an early sign that the group’s cash account is in a tight spot,” explained the personal financial planner
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When the stock price started breaking below its critical support level (eg, below 60 sen), large shareholders or margin accounts need to top up their cash.
If they fail to top up, the bank/broker will carry out forced selling (in the open market). That’s what causes the free fall without mercy.
Apparently, this is the second plunge bout incurred by Zetrix AI which name change took effect on July 3 last year to reflect its so-called diversification to blockchain infrastructure and artificial intelligence solutions.
The first was on Aug 28 when the group hit the 30 sen limit down to 29.5 sen coincidentally on the day when former human resources minister Datuk Seri M. Saravanan was charged at the Kuala Lumpur Sessions Court with three corruption counts relating to foreign worker quotas.
“Out of the blue, the big news headline cropped out in the media. Zetrix AI is accused of owing/did not hand over to JPJ collection of more than RM200 mil,” recounted Azam who is also a mortgage advisor at TMS Loan Rumah.
“After the news came out, the stock continued its descent to hit the -30% limit down level to close at 11.5 sen with a volume of 1.055 billion shares exchanged hands.”
Delving on the “over RM200 mil” owed by Zetrix AI to JPJ, Azam contended that “this isn’t something that happened yesterday”.
“When something gets stuck at the level of agency and ministry audits, the news starts to become a whisper among bankers, brokers and institutional sharks,” he cautioned.
“When they smell a big risk, they won’t wait for a media release. They press the SELL button first.”
Henceforth, Azam warned that when a counter “suddenly gets disposed by an incredibly crazy volume even when there’s no news on the forum, don’t be tempted to catch the falling knife”.
Such is the reality of the capital market. The media and news portals need black and white documents, ministry verification or official exposure before they can print without being sued for defamation.
While the media is waiting for the official statement, the trading room has long been emptying its stock. When the news reaches the retail phone line, the stock has reached its final stage pricing phase.
The chart never lies. Big money runs away first, then only the reason follows. Even I almost got hit by the falling knife. God forbid. – Oct 3, 2026
Main image credit: Pocket News (@pocketnewsmy)/Threads
