NationGate Holdings' stock fell sharply following a raid by the Malaysian Anti-Corruption Commission on its subsidiary, NationGate Solution, regarding scrap metal smuggling investigations. The shares dropped 14% on Tuesday to 1.45 Malaysian ringgit, although they slightly recovered later in the week. NationGate stated that the raid did not implicate board members and anticipated no major financial impacts. The MACC's crackdown aimed at smuggling syndicates has uncovered significant tax revenue losses. NationGate is a crucial partner for Nvidia in Southeast Asia, experiencing substantial sales growth driven by its data computing segment.
Shares of NationGate Holdings plummeted 14% after Malaysian authorities raided its subsidiary, NationGate Solution, as part of an ongoing investigation into scrap metal smuggling.
The Malaysian Anti-Corruption Commission is investigating scrap metal smuggling syndicates reportedly causing significant revenue losses for the state, prompting regulatory action.
Despite the raid's implications, NationGate assured that it did not expect significant financial or operational impact, clarifying that it did not involve senior management.
The company's rapid growth, particularly in its data computing segment, has made it the fastest-growing company in Southeast Asia, with sales reaching 5.3 billion ringgit.
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