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RM950mil scrap metal tax evasion probe: MACC raids NationGate subsidiary

Electronics manufacturer says it is cooperating with authorities, taken steps to ensure operations remain unaffected after yesterday’s raid

2:21 PM MYT

 

KUALA LUMPUR – The Malaysian Anti-Corruption Commission (MACC) has raided the premises of NationGate Solution (M) Sdn Bhd as part of an investigation into alleged scrap metal smuggling. 

In a filing with Bursa Malaysia, NationGate Holdings Bhd – an electronics manufacturing services (EMS) provider – confirmed the raid took place yesterday.

It comes after the MACC launched a crackdown on a scrap metal smuggling syndicate operating across five states, which allegedly paid bribes to enforcement officers and cost the government over RM950 million in lost export tax revenue. 

NationGate said its board of directors takes the allegations seriously and has taken proactive steps to fully cooperate with the MACC, while safeguarding the integrity of the investigation. 

It added that the board would announce any material developments in compliance with Bursa Malaysia Securities Bhd’s listing requirements and all applicable laws, according to Bernama. 

“Our company remains committed to the highest standards of corporate governance, accountability and transparency. 

“The board assures stakeholders that it will do its utmost to ensure business operations remain unaffected, and appropriate interim measures have been put in place,” the company said in its statement today. 

As of the mid-day break, NationGate’s shares were trading eight sen or 4.97% higher at RM1.69, with 27.12 million shares changing hands. 

The MACC’s operation, dubbed Op Metal, is being carried out by its Special Operations Division through the Multi-Agency Task Force, comprising the Royal Malaysian Customs Department, Inland Revenue Board, and Bank Negara Malaysia. 

Yesterday’s raid involved 19 locations across Penang, Selangor, Negeri Sembilan, Johor and Kedah, including homes, offices, and scrap metal storage and processing facilities allegedly linked to the illegal activities. Six of the locations were in Penang. 

MACC chief Tan Sri Azam Baki said the operations targeted manufacturers and exporters involved in overseas shipments of scrap metal. 

The case is being investigated under Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA 2001). 

He said investigations also focus on identifying individuals involved, including public servants who may have protected the operation. – July 15, 2025

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