MACC Seizes Two Big E-waste Recycling Plants in Penang

The Malaysian Anti-Corruption Commission (MACC) has raided two electronic waste (e-waste) recycling factories suspected of bribing enforcement officers, resulting in significant tax revenue losses. The raids, part of Op Metal, were carried out at 9am and targeted a factory on Jalan Perusahaan Perai 3 in the Perai Industrial Area and another in Bukit Minyak, Bukit Mertajam.

This enforcement action follows a recent exposure of a scrap metal smuggling syndicate. In this operation, scrap metal was falsely declared as machinery and other items that are exempt from the government’s 15 percent export tax. Op Metal, now in its second day, is led by MACC’s Special Operations Division in partnership with the Royal Malaysian Customs Department, Inland Revenue Board (IRB), and Bank Negara Malaysia as part of a multi-agency task force.

The MACC’s Anti-Corruption Tactical Squad secured both factories, documented the details of 25 local and foreign workers, and detained a man in his 50s. The man, believed to be the chief operating officer, is being questioned and relevant documents have been seized.

MACC chief commissioner Tan Sri Azam Baki confirmed that 13 additional locations across Penang, Kedah, Johor, and the Klang Valley were also raided. He stated, “MACC is now identifying those colluding with the syndicate that smuggled scrap metal and e-waste through Port Klang and Penang Port, causing an estimated tax loss of over RM950 million over the past six years.”

Previously, Bernama had reported that the MACC launched a major crackdown on scrap metal smuggling syndicates across five states, allegedly involving bribes to enforcement personnel to evade taxes and leading to more than RM950 million in losses for the government.