Zetrix Al Berhad: Still Involved in the Foreign Worker Permit Services
QUICK THOUGHTS…
MBSB
RESEARCH
Quick Thoughts | Wednesday, 30 July 2025
Zetrix Al Berhad: Still Involved in the Foreign Worker Permit Services
(0138 | ZETRIX MK) Main | Technology
Recommendation
Maintain BUY
Target Price
RM1.25
DEVELOPMENT & VIEW
In a different arrangement. We are maintaining our BUY recommendation on Zetrix Al (Zetrix) with an unchanged target price of RM1.25 after the clarification made by the group regarding the recent news on contract termination for foreign worker renewal permits. While the existing service contract has ended, Zetrix will still be involved in the provision of foreign worker permit services via National Integrated Immigration System (NIISe) in view of the partnership with HeiTech Padu. As such, we view that there is no threat to the group’s earnings at this juncture. We believe that the recent share price weakness would represent a good opportunity for investors to accumulate on the stock.
Existing contract come to an end… According to the newswire, Zetrix no longer involved in renewal of foreign worker permits in conjunction with the end of the contract with the Government. The group clarified through Bursa announcement that the term of the Foreign Worker Permit Renewal Services of which the extension was announced by the Company in July 2023 has ended.
To be replaced by NIISe…However, the group added that from 29th July 2025 onwards, the Foreign Worker Permit Services re now a module under the scope of the NIISe”) project which aims to integrate the border control system under various agencies of the Ministry of Home Affairs. At this juncture, we understand that the services are being progressively migrated to the new system. Note that the immigration department is set to begin using the NIISe in October 2025, a move aimed at enhancing border security through artificial intelligence (AI) technology.
To recall, the NIISe project worth RM892.2m was awarded to HeiTech Padu Bhd (NR) in October 2024 by the Immigration Department of Malaysia. The contract requires Heitech to study, propose, design, develop, supply, deliver, install, test, integrate, migrate and synchronise data, as well as to provide training for the use of the NIISe system. It is for a period of 60 months commencing from Oct 18, 2024, to Oct 17, 2029. Notably, both Zetrix and HeiTech Padu have commenced a partnership for current and future e-government projects in Malaysia in which either one party is involved.