PERFORMANCE MANAGEMENT DISCUSSION AND ANALYSIS REVIEWING THE MACRO-OPERATING ENVIRONMENT The year 2025 was marked by an uncertain global landscape, with businesses navigating escalating trade tensions and policy uncertainties, especially those stemming from the United States of America (“U.S.”) trade tariffs. Continued inflationary pressures in certain international markets, shifts in political leadership and protracted geopolitical conflicts worldwide also impacted many economies. Nonetheless, Malaysia navigated these headwinds strategically and responsibly. The FY2025 saw Malaysia’s economy demonstrating robust performance to record GDP growth of 5.2%, driven by firm domestic demand and resilient export activity. The labour market remained tight, with an unemployment rate of around 2.9%, while headline inflation stayed moderate within the central bank’s target range, supported by stable commodity prices and policy measures to bolster growth while maintaining price stability. External demand continued to contribute to expansion, with stronger technology and services exports helping sustain output momentum. ZETRIX AI IN FY2025 Malaysia’s positive economic trajectory in FY2025 provided a supportive environment for companies advancing digital transformation, with Zetrix AI standing at the forefront of this evolution. The year was particularly pivotal as the Group embarked on a new chapter under its Zetrix AI identity, a rebranding formalised and announced in June 2025 that symbolises its strategic shift from mainly a conventional e-government services provider to a global technology entity anchored in today’s most advanced innovations in blockchain and AI. Therefore, amidst macroeconomic uncertainties, Zetrix AI remained undeterred in its growth trajectory, posting another set of record financial results in terms of its top and bottom lines. This was powered by the deployment of new applications and solutions within the Web3 + AI space as mainstream adoption of these transformative emerging technologies continued to accelerate. While the long-running e-government services remained a steady contributor to the Group given the nature of such services being essential to the daily lives of individuals and businesses, it was the Web3 + AI ecosystem that was the primary driver of growth during the year, underpinned by the variety of existing and new services launched. These services range from digital identity issuance and verification solutions, to the ZTrade customs clearance processing and NurAI, which is the world’s first Shariah-aligned large language model (“LLM”), blockchain-based voting application for the globally-renowned Miss Universe pageant, and even to the introduction of RMJDT, since renamed JMYR, the first ringgit-pegged stablecoin on the Zetrix blockchain. Building upon the foundations laid in earlier years, FY2025 marked a phase where Zetrix AI’s innovations began to scale commercially. Key services such as ZTrade (Malaysia–China cross-border trade facilitation) and Digital ID offerings continued to gain traction, bolstered by deeper integration with China’s national ecosystem. The roll-out of several real-world decentralised applications in FY2025, many of which being the first of their kind on a domestic and global scale and exclusive to the Zetrix Layer-1 public blockchain platform developed by Zetrix AI, continued to dovetail with strategically-forged partnerships with other leading entities, enabling all parties to combine their respective expertise to jointly create transformative innovations that bring unique value propositions to the marketplace. Noteworthy collaborative endeavours sealed during the year ranged from strategic partnerships with household Chinese technology names to establish the ASEAN China AI Lab initiative, to the formalisation of a joint venture entity with the commercial arm of MIMOS Berhad, Malaysia’s national Applied Research and Development Centre, to implement the Malaysia Blockchain Infrastructure (“MBI”), to a partnership with Singapore Trade Data Exchange Services Pte. Ltd. (“SGTraDex”), Singapore’s digital infrastructure for trade data exchange, to explore the technical integration of their respective platforms to enable a secure and interoperable channel for the exchange of trade-related data, and to a collaboration with the Government of Malaysia, through Jabatan Kemajuan Islam Malaysia (“JAKIM”), to establish a global framework for Shariah compliance and governance in AI, just to name a few. PEORFVOERVMIAEWNCE 19
RkJQdWJsaXNoZXIy NDgzMzc=