The multi-million-ringgit robbery of microchips in Penang yesterday, considered the country's biggest heist, would damage Malaysia's investment climate, freight forwarders warned today.

"It will create a negative image about Malaysia among investors. This is not the first time such a robbery has happened. It has been going on for the past 10 years," Walter Culas, chairman of the Airfreight Forwarders Association, told AFP .

A frustrated Culas said the RM50-million robbery would not have happened if the cargo complex managed by national carrier Malaysia Airlines had tight security.

"They ignored our warnings. They never implemented a security system," he added.

In a related development, the police today arrested four people including a security guard of the warehouse in connection with the heist and were questioning them, Bernama news agency said.

Koh Hong Sun, Penang state police chief, said one of the alleged robbers was arrested at a house in northeastern Kelantan state.

Police have launched a massive search for the other robbers, he said, adding that police know the identities of the suspects.

FMM concerned

On Monday, a gang of 20 men armed with machetes and dressed in security uniforms attacked workers and forced them to drink chloroform-laced liquid to knock them out.

The gang escaped after loading two trailers with the microchips and computer parts that were to be flown to several countries late Monday, the New Straits Times newspaper reported.

Penang is considered Southeast Asia's "Silicon Valley" and houses hundreds of IT-related companies including Dell, Intel and Motorola.

The Federation of Manufacturers of Malaysia has also called for security control measures at all cargo complexes be beefed up.

"Security of goods in transit has become an international issue, especially if a shipment is intended for the export markets. Hence, continuous and concerted efforts are necessary to reduce these serious crimes, which are often well organised," it said in a statement.

A furious PM

Prime Minister Abdullah Ahmad Badawi also expressed disappointment over lax security in the cargo complex in Batu Maung, near the Bayan Lepas International Airport, and urged police to nab the robbers quickly.

"Police have to determine if it was an inside job," he said.

An equally furious Penang chief minister Koh Tsu Koon expressed regret over the robbery.

"I am shocked this has happened. It is not only going to affect Penang's image but also jeopardise investor confidence in the state," he said.

Economic growth hit 7.2 percent in 2004 but slowed to 5.2 percent in 2005. Foreign investment also fell in 2005 to US$3.97 billion from US$4.62 billion the year before.

In previous incidents, robbers escaped with liquid crystal display monitors worth four million ringgit from the Kuala Lumpur International Airport cargo centre last October, while in February 2004 half a million ringgit worth of gold bonding wire was stolen from the same location.