MACC raided NationGate Solution (M) Sdn Bhd, a subsidiary of NationGate Holdings, on July 14, 2025, as part of an investigation into scrap metal smuggling syndicates across five states (Penang, Selangor, Negeri Sembilan, Johor, and Kedah).

The raids ("Op Metal") targeted 19 locations, uncovering a syndicate accused of bribing enforcement officers to evade a 15% export tax, causing an estimated RM950 million tax loss over six years. The MACC probe focuses on undeclared scrap metal exports (e.g., to China, India) disguised as non-taxable goods smuggling high-value metals (like copper) could exploit price disparities from global tariffs. Rising copper prices may incentivize illegal scrap metal trade to bypass taxes and capitalize on demand.

The raid follows a March 2025 sell-off (linked to unrelated fraud allegations), eroding market confidence.
If proven, NationGate could face fines, reputational damage, or loss of contracts (e.g., NVIDIA partnerships).
If bribery is proven, the company could face:
A fine of 10 times the bribe amount or RM1 million (whichever is higher).
Directors/managers may also face up to 20 years’ imprisonment if culpability is established 9.

Tax Evasion (Customs Act/Income Tax Act)
The alleged RM950 million tax loss suggests potential fines linked to unpaid export taxes (15% rate) and penalties for false declarations.
While exact fines remain uncertain until the investigation concludes, NationGate could face multi-million-ringgit penalties if found guilty of tax evasion, money laundering, or bribery. The RM950 million tax loss figure indicates the scale of potential liabilities.