Zetrix to benefit from Malaysia’s blockchain plans

PETALING JAYA: Zetrix AI Bhd, formerly known as MyEG Services Bhd, is poised to benefit from new ancillary revenue streams as Malaysia’s blockchain and digital ID ecosystems enter nationwide deployment in the second half of this year, according to UOB Kay Hian Research (UOBKH Research).

In a recent note, the research house said the group is well-positioned to capitalise on the full rollout of the Malaysia Blockchain Infrastructure (MBI) and My Digital ID, both being developed in collaboration with the Malaysian Institute of Microelectronic Systems (Mimos).

“Given Zetrix’s partnership with Mimos for MBI, we deem that any potential nationwide policy that encourages better adoption of blockchain technology may be beneficial for the group,” UOBKH Research said.

It highlighted potential use-cases such as the tokenisation of financial instruments, including bank guarantees and bankers’ acceptances.

It said Zetrix is also co-developing the My Digital ID Superapp with Mimos, aimed at providing a single sign-on platform for identity verification across government platforms such as MySejahtera, MyJPJ and MyHRMIS.

“Zetrix will monetise this project through one-off registration fees and recurring income via subscription modules for any commercial entity that wants to use MY Digital ID as single-login user ID solutions in the future,” it noted.

UOBKH Research said Zetrix has invested over RM1bil into developing its blockchain over the past three years and has launched multiple applications, including Ztrade with China customs, certificate of origin authentication services, smart-contract verifiable credentials, and blockchain-based digital signing.

“More importantly, some of these government-to-government blockchain applications under the Zetrix platform solidify the group’s presence within the domestic e-government space, with increasing adoption rates across various ministries,” it noted.

UOBKH Research has maintained a “buy” call on Zetrix, with an unchanged target price of RM1.46 a share.