HeiTech Padu has confirmed that its collaboration with Zetrix AI on the National Integrated Immigration System, or NIISe, has come to an end following the expiry of the companies' teaming agreement. Despite the separation, HeiTech Padu says development and delivery of the RM1.05 billion national immigration system will continue as planned and will not be materially affected.
The clarification was made in a Bursa Malaysia filing dated 29 October. HeiTech Padu explained that the arrangement with Zetrix AI was originally intended as an interim framework for both companies to explore potential information technology opportunities rather than a permanent partnership tied exclusively to NIISe.
Original Agreement Was Signed In April 2024
HeiTech Padu and Zetrix AI initially signed their teaming agreement on 16 April 2024. The arrangement gave both companies a framework through which they could jointly explore potential IT service opportunities in Malaysia.
The agreement was valid for one year rather than being structured as a long-term partnership. Once that period expired, both parties mutually decided not to extend it further.
HeiTech Padu has therefore characterised the end of the relationship as the natural expiry of an existing arrangement rather than an abrupt termination of an active project partnership.
Supplementary Agreement Later Defined Their Responsibilities
The two companies subsequently entered into a supplementary agreement on 4 August 2025. This additional arrangement was intended to provide greater clarity regarding the roles each company would perform when pursuing jointly identified projects.
Under the agreed structure, Zetrix AI was expected to handle front-end technology solutions, while HeiTech Padu would take responsibility for the back-end systems. The division allowed the companies to combine their respective capabilities when suitable opportunities emerged.
However, the arrangement only applied to projects that both parties specifically identified for joint participation.
No Current Projects Require Zetrix AI Collaboration
HeiTech Padu says it currently has no ongoing projects that require the two companies to collaborate under the supplementary agreement. That means the expiry does not leave an active joint project without technical support or delivery responsibility.
The company specifically emphasised that the development of NIISe does not depend on the continued involvement of Zetrix AI under this arrangement.
This distinction is important because the size and national importance of the immigration project could otherwise raise concerns about whether ending the partnership might delay implementation.
NIISe Will Continue Without Material Impact
HeiTech Padu maintains that the expiry of the agreement will have no material impact on the implementation or delivery of NIISe. The company remains responsible for progressing the system according to its existing obligations.
That reassurance is particularly significant because NIISe is one of Malaysia's major government digitalisation projects. Any uncertainty surrounding its development could potentially affect immigration processing and border-management plans.
For now, HeiTech Padu is presenting the end of the Zetrix AI relationship as separate from the continued execution of the NIISe programme.
NIISe Is A RM1.05 Billion National Immigration Project
The National Integrated Immigration System is being developed under a contract valued at approximately RM1.05 billion. Its purpose is to modernise Malaysia's immigration technology and consolidate previously separated services into a more integrated digital platform.
The system is expected to support immigration processing, border controls and related government services through a common technology environment.
A national immigration platform of this scale needs to support large numbers of travellers, government personnel and border-processing operations while maintaining security and availability.
The System Is Intended To Modernise Immigration Infrastructure
Malaysia's existing immigration environment involves numerous services and operational processes. NIISe is designed to bring more of those capabilities together instead of maintaining fragmented systems operating independently.
The objective is to create a more modern infrastructure capable of supporting digital immigration processes and border-management functions.
Integration can also potentially make it easier for different immigration services to share information and operate through common workflows.
This makes NIISe more than simply another government application. It represents a wider technology foundation for immigration operations.
MyNIISe Runs On The Same Underlying Infrastructure
NIISe also provides the underlying technology behind the MyNIISe mobile application and platform that the government has been preparing for wider public use.
MyNIISe is intended to give travellers access to immigration-related digital services through a more streamlined interface. Its capabilities depend on the broader NIISe infrastructure operating behind the scenes.
That means progress on NIISe directly influences the government's ability to expand MyNIISe into more locations and use cases.
The mobile application may be what members of the public interact with, but the larger immigration system remains the technological foundation supporting it.
Government Targets January 2027 For Wider MyNIISe Rollout
The government is currently targeting January 2027 for a wider rollout of MyNIISe. The platform has already been introduced at selected entry points as part of its initial implementation.
Expanding it more broadly will require the supporting immigration systems to operate reliably across additional locations and larger volumes of users.
HeiTech Padu's insistence that the Zetrix AI agreement expiry will not affect NIISe therefore becomes particularly important as that deadline approaches.
Any significant disruption to the core project could potentially complicate the planned expansion.
Zetrix AI Was Responsible For Front-End Technology Under The Partnership
Under the supplementary arrangement, Zetrix AI's designated role involved front-end technology. In general terms, this would cover the parts of jointly identified systems that users or operators interact with directly.
HeiTech Padu, meanwhile, was positioned as the provider responsible for underlying back-end infrastructure and systems.
However, the companies' agreement did not mean Zetrix AI was permanently embedded across every HeiTech Padu project. The roles applied where both companies had agreed to work together.
With no current project requiring that partnership, HeiTech Padu says the agreement can lapse without disrupting ongoing delivery.
HeiTech Padu Retains Responsibility For Back-End Systems
HeiTech Padu's role within the arrangement focused on back-end technology, which generally includes core application logic, integration, infrastructure and supporting systems.
That positioning is consistent with the company's broader involvement in large government and enterprise IT projects.
For NIISe, maintaining continuity across the underlying platform is especially important because immigration services depend on multiple integrated components operating reliably.
The company appears confident that it can continue fulfilling those responsibilities without the previous partnership structure.
The End Of The Agreement Comes During A Difficult Period For Zetrix AI
The timing of the announcement is notable because Zetrix AI has recently faced several unrelated financial and government-related developments.
The government has announced plans to pursue legal action involving Zetrix AI and its subsidiary MyEG over approximately RM314 million in allegedly unpaid revenue.
That matter concerns government collections and is separate from the NIISe teaming agreement with HeiTech Padu.
Nevertheless, the developments are occurring close together, which has naturally increased public and investor attention surrounding Zetrix AI.
Government Is Pursuing RM314 Million In Allegedly Unremitted Revenue
The RM314 million issue relates to revenue collected on behalf of the government that was allegedly not remitted according to the required arrangements.
Authorities have indicated that legal action is being pursued against the companies involved.
Because the funds concern government collections, the dispute has attracted considerably more attention than an ordinary commercial payment disagreement.
Zetrix AI has separately said that it is cooperating with the relevant authorities in relation to investigations involving the company.
The NIISe Separation Should Be Viewed Separately
HeiTech Padu's announcement is careful to frame the expiry of its teaming agreement as a contractual matter rather than presenting it as a consequence of Zetrix AI's other recent difficulties.
The agreement had a defined duration and both parties mutually decided not to renew it. HeiTech Padu also says there are no ongoing projects currently requiring the supplementary collaboration.
That distinction matters because multiple developments involving the same company can easily be interpreted as connected even when there is no evidence establishing such a relationship.
Based on HeiTech Padu's explanation, the NIISe project's continuation is not dependent on the other issues surrounding Zetrix AI.
Government Technology Projects Need Clear Responsibility
Large government technology projects often involve several vendors, subcontractors and specialist providers. Clear responsibilities become important because uncertainty about which party owns a particular component can create delays when problems occur.
The supplementary agreement between HeiTech Padu and Zetrix AI attempted to establish that division by separating front-end and back-end responsibilities for jointly identified projects.
With that agreement now expired, HeiTech Padu will need to ensure that any responsibilities previously expected from a partner are either unnecessary for NIISe or are covered through other arrangements.
The company's Bursa filing indicates that it does not expect the change to disrupt delivery.
Business Partnerships Do Not Always Need To Become Permanent
The situation also illustrates how teaming agreements in the technology industry can be temporary by design.
Companies frequently collaborate when their capabilities complement each other for a particular opportunity without intending to merge operations or maintain an indefinite strategic partnership.
Once the relevant opportunities change or the original agreement expires, both companies may simply choose to pursue projects independently.
The end of such an arrangement does not necessarily indicate a dispute between the participants.
Investors Will Likely Watch NIISe Progress Closely
Given the size of the NIISe contract, investors will likely continue monitoring HeiTech Padu's progress closely.
A RM1.05 billion government technology project represents a significant undertaking, and successful implementation could strengthen the company's position in future public-sector digitalisation projects.
Conversely, delays or implementation problems could attract considerable scrutiny because immigration infrastructure is nationally important.
HeiTech Padu's assurance that the partnership change will not affect NIISe is therefore intended to address precisely those concerns.
The January 2027 Timeline Adds Pressure
The planned wider MyNIISe rollout in January 2027 means the broader project is approaching an important stage.
As more entry points and travellers begin depending on the platform, reliability and integration become increasingly important.
Government technology projects often face their biggest operational tests when moving from limited deployments into broader real-world use.
HeiTech Padu will therefore need to demonstrate that the separation from Zetrix AI does not create gaps as NIISe moves closer to expanded implementation.
MyNIISe Could Become The Public Face Of The Project
For most Malaysians and travellers, the NIISe infrastructure itself may remain largely invisible. What they are more likely to encounter directly is the MyNIISe platform built on top of it.
If the mobile system provides faster immigration processes and smoother border experiences, users may associate those benefits with MyNIISe rather than the underlying NIISe architecture.
However, every public-facing feature still depends on stable back-end services operating behind it.
That is why continuity in the core project remains essential regardless of which companies are involved at the front end.
Government Digitalisation Depends On Long-Term Support
NIISe will also require more than a successful initial launch. National systems typically need ongoing maintenance, cybersecurity updates, integration work and operational support for many years.
Immigration technology in particular needs to respond to changes in government policy, border procedures and security requirements.
The technology partners supporting the system therefore need long-term capability rather than simply delivering software and walking away after deployment.
HeiTech Padu's role will likely continue well beyond the initial implementation stage.
Cybersecurity Will Be Particularly Important
Any integrated immigration platform handles highly sensitive information and critical government operations. Cybersecurity therefore needs to remain a fundamental part of the architecture throughout its lifecycle.
Access controls, encryption, monitoring, vulnerability management and disaster recovery all become essential once multiple immigration services are consolidated into one environment.
Centralisation can improve efficiency, but it can also create greater consequences if the central platform experiences a serious failure or compromise.
The success of NIISe will therefore depend on resilience as much as functionality.
Integration Is One Of The Hardest Parts Of Government IT
Large government systems often need to connect with older databases, new applications, physical border equipment and services maintained by other agencies.
Making all of those systems communicate reliably is frequently much harder than designing the new application itself.
This integration challenge explains why large national IT projects can take years to complete even when individual components appear straightforward.
NIISe's objective of unifying immigration services makes that complexity unavoidable.
The Partnership Change Tests Project Independence
One measure of a mature technology project is whether it can continue successfully when individual suppliers or partnership arrangements change.
If NIISe's implementation remains unaffected by the end of the HeiTech Padu-Zetrix AI teaming agreement, it would suggest the project is not overly dependent on one external collaborative arrangement.
That kind of independence is useful for long-lived government infrastructure.
No major national platform should become impossible to maintain simply because one commercial partnership expires.
HeiTech Padu Is Sending A Clear Message About Continuity
The central message from HeiTech Padu's Bursa filing is therefore straightforward: the teaming arrangement has ended, but the NIISe project continues.
The company says the expiry creates no material impact and that there are currently no projects requiring Zetrix AI collaboration under the supplementary agreement.
That reassurance is likely aimed at investors, government stakeholders and anyone concerned that the recent developments involving Zetrix AI could affect Malaysia's immigration modernisation programme.
The practical test will be whether implementation milestones continue being met over the coming months.
Final Thoughts
HeiTech Padu's decision not to extend its teaming agreement with Zetrix AI marks the end of a technology partnership originally established in April 2024. The companies later clarified their roles through an August 2025 supplementary agreement, with Zetrix AI designated for front-end solutions and HeiTech Padu responsible for back-end systems on projects they jointly identified.
According to HeiTech Padu, there are currently no active projects requiring that collaboration, and the expiry of the agreement will have no material impact on the RM1.05 billion NIISe project.
That reassurance matters because NIISe is intended to become the technological foundation of Malaysia's modernised immigration infrastructure and supports the MyNIISe application that the government plans to roll out more widely from January 2027.
The clarification also arrives while Zetrix AI and MyEG face separate government action over approximately RM314 million in allegedly unpaid revenue. Those developments increase scrutiny around Zetrix AI, but HeiTech Padu has not indicated that they are the reason for the partnership ending.
For now, the important point is that NIISe remains on course according to HeiTech Padu. The collaboration may have ended, but the immigration modernisation project itself is continuing — and its upcoming wider rollout will provide the clearest indication of whether the transition is as seamless as the company expects.
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