Latest news with #scrapmetalsmuggling
Yahoo
19-07-2025
- Business
- Yahoo
Malaysia's AI darling NationGate sees shares tumble after it got raided in a scrap metal smuggling probe
Shares of NationGate Holdings, Nvidia's only manufacturing partner in Southeast Asia, took a beating this week after the company disclosed a raid into one of its subsidiaries by Malaysian authorities. On Tuesday, Nationgate admitted that the Malaysian Anti-Corruption Commission (MACC) raided the premises of NationGate Solution, a wholly-owned subsidiary, as part of an ongoing investigation into scrap metal smuggling. Nationgate's shares fell 14% on Tuesday to reach 1.45 Malaysian ringgit ($0.34). Shares pared back losses over the rest of the week, but are still down over 10% from Tuesday. On Thursday, NationGate stated that the raids did not involve any specific board members or senior management, and that the company didn't expect a significant hit to its finances or operations. In a response to Fortune, a spokesperson from NationGate Holdings said that it is an electronic manufacturing services company and that scrap metal trading has never been part of the company's business. The spokesperson added that the MACC visit to NationGate Holdings' subsidiary is part of an industry wide investigation, and that as a responsible corporate citizen, NationGate is giving full assistance to the MACC investigation. Malaysia's state news agency Bernama reported on Tuesday that the MACC launched a crackdown on scrap metal smuggling syndicates operating in five states that have resulted in an estimated tax revenue loss of 950 million Malaysian ringgit ($223.9 million). The report added that preliminary investigations revealed these syndicates exported scrap metal to India, China and other countries but reported them as machinery or other metals not subject to the 15% export tax imposed by the government. NationGate, ranked No. 243 on the Southeast Asia 500, was the fastest-growing company on Fortune's ranking of the region's largest companies by revneue. 2024 sales surged 720% to reach 5.3 billion Malaysian ringgit ($1.6 billion), largely thanks to surging growth in its data computing segment. NationGate is the only company in Southeast Asia that assembles Nvidia's highly sought-after graphic processing units (GPUs) into AI servers. Nvidia's GPUs are the most used in high-performance AI applications. But the AI boom and the link to Nvidia are also a risk for NationGate. In early March, Malaysia and neighboring Singapore faced U.S. allegations of being channels for controlled chips to make their way to China. U.S. officials were reportedly interested in whether DeepSeek, the scrappy Chinese AI startup, got its hands on Nvidia processors it wasn't supposed to have. Singapore's Law and Home Affairs Minister K Shanmugam said in March that servers containing chips subject to U.S. export controls appeared to have been sent to Malaysia. Malaysia's Trade Minister Tengku Zafrul Abdul Aziz then said officials were investigating and vowed to take necessary action. Separately, Singapore has also charged three men with fraud for allegedly misrepresenting the end-user of computer servers that may contain Nvidia chips. On Monday, Malaysia announced that all exports of high-performance U.S. AI chips will now require permits for exports, and that individuals and companies must notify the government at least 30 days prior to shipping such hardware. NationGate has distanced itself from the subject and has clarified that it's not involved in any investigations. Yet investors are still spooked. NationGate's shares are down over 40% year-to-date. Update July 19, 2025. This article has been updated with a statement from NationGate Holdings. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Free Malaysia Today
15-07-2025
- Business
- Free Malaysia Today
MACC raids NationGate unit over alleged scrap metal smuggling
NationGate Solution (M) Sdn Bhd's premises were among those raided by MACC in a major crackdown on scrap metal smuggling. (NationGate pic) PETALING JAYA : The Malaysian Anti-Corruption Commission (MACC) has raided the premises of NationGate Solution (M) Sdn Bhd, a wholly owned subsidiary of NationGate Holdings Bhd, as part of an ongoing investigation into allegations of scrap metal smuggling. In a filing with Bursa Malaysia today, NationGate said the raid took place on Monday and that its business operations remained unaffected. 'The board views these allegations with the utmost seriousness and has taken proactive steps to ensure full cooperation with MACC and safeguard the integrity of the investigation. 'Our company remains steadfast in its commitment to the highest standards of corporate governance, accountability, and transparency,' it said, adding that 'appropriate interim measures' had been put in place. The company also said that it would issue further announcements in accordance with Bursa's listing requirements and the relevant laws. According to a Bernama report, MACC has launched a large-scale operation against scrap metal smuggling syndicates which allegedly paid bribes to enforcement officers. The illegal activities are believed to have cost the government over RM950 million in lost tax revenue. MACC chief commissioner Azam Baki confirmed that the raids targeted factories and exporters across five states suspected of sending scrap metal overseas illegally, the report said.
Free Malaysia Today
15-07-2025
- Business
- Free Malaysia Today
MACC busts scrap metal smuggling rings in 5 states
The raids were carried out by the Malaysian Anti-Corruption Commission's special operations division through the multi-agency task force. (Bernama pic) GEORGE TOWN : The Malaysian Anti-Corruption Commission (MACC) has launched a major crackdown on scrap metal smuggling syndicates in five states, believed to have paid bribes to enforcement officers resulting in an estimated tax revenue loss of over RM950 million. The raids were carried out by MACC's special operations division through the multi-agency task force, in collaboration with the customs department, the Inland Revenue Board, and Bank Negara Malaysia, at 19 locations across Penang, Selangor, Negeri Sembilan, Johor, and Kedah. The operation, dubbed 'Op Metal', also involved personnel from MACC's anti-corruption tactical squad (ACTS), who raided six sites in Penang yesterday including residences, offices, and scrap metal storage and processing centres believed to be involved in the smuggling operations. The first raid was conducted at a three-storey luxury bungalow in Batu Maung, believed to belong to a businessman who owns a scrap metal company, at around 6am on July 14. A domestic helper opened the door after ACTS officers knocked, and a search was conducted with officials, although the company owner was reportedly out at the time. The operations team searched for evidence and documents related to the smuggling activities while the ACTS team maintained surveillance inside and outside the home. Later, members of the media were brought along for a raid on a scrap metal storage and processing site at Jalan Bukit Minyak in Bukit Mertajam, just as the premises were opening for business at around 9 am. The ACTS team conducted an inspection of the zinc-fenced facility where scrap metal was believed to have been processed before being exported overseas. The team gathered nearly 30 employees, including office staff, before conducting further checks. The premises are believed to be linked to the man whose house was raided earlier that morning. About 15 minutes later, a man claiming to be the site's manager arrived with assurances of full cooperation, while the operations team carried out further checks and reportedly seized several documents for investigation. Meanwhile, a source said that seven raids in Selangor, four in Kedah, and one each in Negeri Sembilan and Johor had targeted other scrap metal centres, offices, and homes of individuals suspected to be involved in the smuggling. Preliminary investigations revealed that the syndicates exported the scrap metal to India, China, and other countries, declaring it as machinery or other metals not subject to the 15% export tax imposed by the government. 'To ensure that the shipments passed inspections and avoided the tax, the syndicates are believed to have bribed several enforcement officers,' the source said. The source said the complicity of certain enforcement officers had caused the government to lose around RM160 million in tax revenue per year over the past six years, with total losses estimated at over RM950 million. The number of arrests and seizures from the operation will be updated as investigations are still ongoing. MACC chief commissioner Azam Baki confirmed the raids in the five states. He said the case was being investigated under Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001. Investigations are also focused on identifying individuals, including public servants, who may have protected the syndicate's activities.
Malay Mail
15-07-2025
- Malay Mail
RM950m tax loss: MACC busts massive scrap metal smuggling ring across five states
GEORGE TOWN, July 15 — The Malaysian Anti-Corruption Commission (MACC) has launched a major crackdown on scrap metal smuggling syndicates operating in five states, which are believed to have paid bribes to enforcement officers, resulting in an estimated tax revenue loss of over RM950 million to the government. The raids were carried out by the MACC's Special Operations Division through the Multi Agency Task Force (MATF), in collaboration with the Royal Malaysian Customs Department (JKDM), the Inland Revenue Board (LHDN), and Bank Negara Malaysia (BNM), at 19 locations across Penang, Selangor, Negeri Sembilan, Johor, and Kedah. The special operation, dubbed 'Op Metal,' also involved personnel from MACC's Anti-Corruption Tactical Squad (ACTS), who raided six sites in Penang yesterday, including residences, offices, and scrap metal storage and processing centres believed to be involved in the smuggling operation. The first raid, which was also joined by Bernama, was conducted at a three-storey luxury bungalow in Batu Maung around 6 am Monday (July 14), believed to belong to a businessman who owns a scrap metal company. A domestic helper opened the door after ACTS officers knocked, and a search was conducted with officials, though the company owner was reportedly not home at the time. Only the man's wife, child, and an elderly woman believed to be his mother were in the residence, while the foreign national was said to be abroad on business for the past two days. The operations team searched for evidence and documents related to the smuggling activities, while the ACTS team maintained surveillance inside and outside the home to ensure a smooth operation. Later, members of the media were brought along for a raid on a scrap metal storage and processing site at Jalan Bukit Minyak in Bukit Mertajam around 9 am, just as the premises opened for business. The ACTS team conducted a thorough inspection of the zinc-fenced facility, which contained scrap metals of various forms, sizes, and types believed to be processed before being exported overseas. The team gathered nearly 30 employees, including office staff, before conducting further checks. The premises is believed to be linked to the man whose house was raided earlier that morning. About 15 minutes later, a man claiming to be the site's manager arrived and assured full cooperation, while the operations team carried out further checks and reportedly seized several documents for investigation into the smuggling activities. Meanwhile, a source said that seven raids in Selangor, four in Kedah, and one each in Negeri Sembilan and Johor targeted other scrap metal centres, offices, and homes of individuals suspected to be involved in the smuggling. Preliminary investigations revealed that the syndicates exported the scrap metal to India, China, and other countries, but declared it as machinery or other metals not subject to the 15 per cent export tax imposed by the government. 'To ensure the shipments passed inspections and avoided the tax, the syndicates are believed to have bribed several enforcement officers,' the source said. The source added that the complicity of certain enforcement officers caused the government to lose around RM160 million in tax revenue per year over the past six years, with total losses estimated at over RM950 million. The number of arrests and seizures from the operation will be updated as investigations are still ongoing. Meanwhile, MACC chief commissioner Tan Sri Azam Baki confirmed the raids in the five states, which involved factories and companies exporting scrap metal abroad. He said the case was being investigated under Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA 2001) and that investigations were also focused on identifying individuals, including public servants, who may have protected the syndicate's activities. — Bernama
