Malaysia’s AI darling NationGate sees shares tumble after it got raided in a scrap metal smuggling probe

On Tuesday, Notelgate admitted that the Malaysian Anti -Corruption Committee (MACC) raided the Solution Solution, a subsidiary fully owned, as part of a continuous investigation of scrap mineral smuggling.

National shares fell 14 % on Tuesday to reach 1.45 Malaysi Ringgit ($ 0.34). The shares decreased from losses during the rest of the week, but are still less than 10 % from Tuesday.

On Thursday, Nadejit stated that the raids did not include any specific members of the Board of Directors or senior management, and that the company does not expect great success in its financial resources or operations.

In response to luck, A spokesman for the National Holdings said it is an electronic manufacturing services company and that the trading of metal scrap was not part of the company’s business.

The spokesperson added that Macc’s visit to National Holdings is part of a wide investigation in the industry, and that as a responsible citizen, National Gate provides full assistance to investigate Macc.

Malaysia State News Agency reported on Tuesday that Macc launched a campaign against scrap mineral smuggling unions operating in five states that resulted in a loss in the estimated tax revenue of 950 million Malaysian Rangeit (223.9 million dollars). The report added that preliminary investigations revealed that these unions topped the metal scrap to India, China and other countries, but they were informed of them as other machines or minerals that are not subject to the 15 % export tax imposed by the government.

Nutnjett, No. 243 in Southeast Asia 500, was a fastest growth company wealth Classification of the largest companies in the region by Revneue. 2024 sales increased by 720 % to 5.3 billion Malaysian Rangeette ($ 1.6 billion), due significantly to increased growth in the data computing sector.

Nationgate is the only company in Southeast Asia that brings together NVIDIA graphic processing units (GPUS) in AI’s servers. NVIDIA graphics processing units are the most used in high -performance AI applications.

But artificial intelligence mutation and link to NVIDIA is also a danger to Nationalgate. In early March, Malaysia and the neighboring Singapore faced allegations that they were channels of controlled chips to reach China. According to what was reported, US officials were interested in whether Depsik, the emerging of Chinese Amnesty International, got her hands on NVIDIA processors that were not supposed to have.

The Minister of law and Home Affairs in Singapore, Chanujam, said in March that the servers containing chips are subject to US export controls that appear to have been sent to Malaysia. Then the Minister of Trade of Malaysia Tingco Zrol, Abdel Aziz, said that the officials were investigating and pledged to take the necessary measures.

Separately, Singapore also accused three men of fraud because of their distortion of the final user of computer servers that may contain NVIDIA chips.

On Monday, Malaysia announced that all high -performance AI chips exports will now require export permits, and that individuals and companies should notify the government at least 30 days before these devices are charged.

Nationalgate has distanced himself from the subject and made it clear that he was not involved in any investigations. However, investors are still ethical. Nationalgate shares decreased by more than 40 % on an annual basis.

Update July 19, 2025. This article was updated with a statement of National Holdings.