PERFORMANCE On the home front, Zetrix AI remains dedicated to reinforcing its e-Government service delivery. Through its strategic partnership with HeiTech Padu, the Group is combining strengths to ensure successful delivery of major recent IT projects and to jointly pursue additional mandates from Government agencies. This partnership will leverage Zetrix AI’s blockchain and digital innovation capabilities to deliver future-proof, world-class government systems—preserving its status as a preferred provider for public sector solutions. Zetrix AI’s ongoing provision of its existing e-Government services also augurs positively for its concession services. BUILDING UPON GLOBAL TRENDS The outlook for Web3 technologies in 2026 and beyond is increasingly positive. Experts forecast that the 2024–2026 Web3 growth cycle could usher in mass adoption. Furthermore, Southeast Asia is witnessing significant institutional capital flowing into Web3, especially in digital payments infrastructure, Layer-1 and Layer-2 protocols, and the convergence of AI and blockchain. This regional momentum bolsters Zetrix AI’s strategic direction and validates its positioning as a key catalyst in the digital economy. In global markets, the current U.S. administration’s pro-blockchain stance is expected to maintain a global regulatory benchmark that accelerates worldwide adoption of blockchain technology across governments, businesses and society. Zetrix AI’s constant awareness and subsequent adaptability towards an evolving technology landscape has been the Group’s greatest strategic strength. The Group has consistently embraced progress and innovation as central tenets of its business strategy. It’s not just about remaining relevant, but leading and shaping the technology agenda across public and private sectors. This conviction guided the Group’s early adoption of blockchain, having recognised long before its mainstream acceptance the transformative potential of Web3 to redefine global technology architecture. This first-mover conviction has since been validated, and while the Group views Web3 as still being in its infancy, with vast opportunities for new applications and business models yet to emerge, investment in these technologies is expected to fundamentally reshape how economies and societies function. The Group also ensures it stays vigilant in monitoring broader technological and innovation trends, with a focus on identifying disruptive opportunities to champion in the years ahead. Moreover, in recognising the rapidly-evolving Web3 + AI space, the Group’s relationship with leading market leaders in this space through collaborative efforts like the ASEAN China AI Lab ensures it has firsthand knowledge of the changes taking place and can capitalise accordingly. Notably, the Group is planning to spin off its internationally-driven Web3 + AI businesses, including the Zetrix blockchain platform, ASEAN China AI Lab projects and other cross-border Web3 applications into a separate entity to be listed on the U.S. based international stock exchange. A successful listing in the U.S. will enable Zetrix AI to tap into a bigger pool of global capital that can further propel the Group’s push to be one of the leading AI players in the world. Zetrix AI understands that meaningful transformation cannot be achieved in isolation, and the Group remains resolute in forging strategic domestic and international partnerships that create synergistic advantages in accelerating innovation and scalability to deliver world-class solutions. Zetrix AI, in this approach, isn’t just focused on advancing its commercial ambitions, but also contributing meaningfully to socio economic development objectives in Malaysia and across international markets. STRATEGIC PRIORITIES AND OPPORTUNITIES In constructing a vibrant and scalable digital ecosystem, Zetrix AI continues to prioritise strategic partnerships, strengthening existing collaborations while welcoming new partners from diverse regions and industries to enhance the platform’s value proposition. In line with this, the Group’s capital expenditure will remain primarily focused on advancing blockchain and technology development, with a smaller allocation dedicated to foreign worker hostels and the upkeep of existing e-government systems. These investments will be funded largely through internally generated resources, with external financing considered selectively when appropriate. Keeping these strategic positions in mind, Zetrix AI is focused on mitigating key risks that might occur while capitalising on any opportunities that arise in 2026. MANAGEMENT DISCUSSION AND ANALYSIS (cont’d) PEORFVOERVMIAEWNCE 31
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