SilverWook said:

I guess some people forget there are shots of Jar Jar's hands and feet that were Ahmed Best in a rubber suit in TPM.

It's more to do with the scale of the creature that points to it being CG, arms and all. Sure, they could have pulled a Lord of the Rings, and employed lots of tricks. For instance they could have shot it twice - once with the regular sized saber being handed to the human hand by someone crouched down in a green lycra costume who could be keyed out after, then a second time with our orange costumed actor handing an oversized saber up to nothing at all. Making sure of course that the positioning of the sabers matched each other as close as possible so it could be lined up seamlessly. Then they could have matched the motion of both versions and shrink/blow up the footage accordingly - just like the scene in bag end of Gandalf giving Bilbo his hat - combined from 2 different takes.

That's a LOT of effort for what I assume is a throwaway character though. It would be far easier and more practical to just CG it. Which is why I said it's either a TINY actor, or far more likely, it's all CG. And just looking at it, I think it's CG personally. It looks great, but there's definitely that 'uncanny valley' feel about it IMO.