Malaysia denied clearing Megaspeed, check chip re-exports

Malaysia's Ministry of Investment, Trade and Industry (MITI) said on Friday, Nov 13, that it never cleared Singapore-based Megaspeed International or its Malaysian affiliate Speedmatrix, and is working with the Royal Malaysian Customs Department to determine whether AI chips brought into Malaysia were improperly reexported. MITI said exporting, reexporting, transshipping or transiting high-performance US AI chips from or through Malaysia has required a MITI permit under the Strategic Trade Act 2010 since July 2025, while importing AI chips currently needs no permit or licence. The clarification follows scrutiny of Megaspeed over suspected diversion of restricted Nvidia AI chips to China, with Singapore's Ministry of Home Affairs saying its investigations into Megaspeed and six individuals remain ongoing.

Malaysia denied clearing Megaspeed, check chip re-exports KUALA LUMPUR Malaysia’s Ministry of Investment, Trade and Industry MITI has clarified that it has never cleared Singapore-based Megaspeed International or its Malaysian affiliate, Speedmatrix, and is actively reviewing whether artificial intelligence AI chips brought into the country have been improperly reexported. In a statement on Friday Nov 13 , Miti said Speedmatrix, a tenant at Malaysian data centres, brings its own servers and AI chips into the country for its operations. Importing AI chips does not currently require a permit or licence. However, exporting, reexporting, transshipping or transiting high-performance US AI chips from or through Malaysia has required a Miti permit under the Strategic Trade Act 2010 since July 2025. Providing false information to customs about such goods is also a serious offence under the Customs Act 1967, it added. The ministry also highlighted that the routine verification visits to data centres occupied by Speedmatrix were part of its regular monitoring of the sector and should not be interpreted as clearing the companies of wrongdoing. “Any verification visits carried out by MITI at these facilities are part of its regular monitoring of the data centre sector, and should not be taken to mean that a company has been cleared. Any suggestion otherwise is inaccurate,” it said.. The clarification comes amid scrutiny of Megaspeed over suspected diversion of restricted Nvidia AI chips to China https://www.businesstimes.com.sg/international/global/chinese-ai-firms-rush-secure-nvidia-chip-capacity-spy-scandal-stirs-fear-us-curbs . Bloomberg has reported that the US Justice Department was working with the Commerce Department’s Bureau of Industry and Security on the investigation. Investment, Trade and Industry Minister Johari Abdul Ghani had earlier said the ministry had not been presented with evidence that Speedmatrix had breached Malaysian law https://www.businesstimes.com.sg/international/asean/no-malaysian-probe-yet-nvidia-customer-megaspeeds-unit-firm-earlier-cited-ministry-checks . Checks across jurisdictions Miti is working with the Royal Malaysian Customs Department to determine whether chips brought into Malaysia were subsequently reexported and whether those shipments complied with the law. Its statement did not announce any finding of wrongdoing. Malaysia would conduct its checks independently under domestic law and based on available evidence, the ministry said. It was also working closely with authorities in Singapore and the United States, and considering further measures to strengthen controls. Separately, Singapore’s Ministry of Home Affairs said on Thursday that investigations into Megaspeed and six individuals remained ongoing https://www.businesstimes.com.sg/singapore/singapore-bars-alice-huang-woman-tied-affair-nvidias-jensen-huang-misleading-police . Singapore authorities were examining whether servers exported through the city-state to Malaysia had subsequently been routed elsewhere, contrary to declarations made in Singapore. Megaspeed said on Thursday that it had cooperated with US inspections and retained a US law firm to conduct a comprehensive inventory of its graphics processing units and independently verify its export-control compliance practices. Miti said that while Malaysia does not enforce other countries’ unilateral export controls, companies operating locally were expected to take those restrictions into account in their international business. It also warned companies against misrepresenting their dealings with government agencies. “Malaysia welcomes investment in data centres and technology, but will not allow itself to be used to get around export controls,” the ministry said, adding that stern action would be taken against companies found to have broken Malaysian law. Regional footprint According to The Straits Times, Megaspeed operated seven overseas subsidiaries https://www.businesstimes.com.sg/singapore/megaspeed-has-hired-us-law-firm-review-export-control-compliance-says-singaporean-director in 2024, including three in Malaysia: cloud providers Speedmatrix and Megaspeed International, alongside MSFusion – a dormant firm that later acquired RM263.2 million of Johor land for a data centre in August 2025. Megaspeed also owned majority or full stakes in entities across Thailand, Indonesia, Australia, and the US. Additionally, corporate intelligence platform Sayari records show an Nvidia GPU baseboard shipment arrived for Speedmatrix on November 18, 2025. Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free. Copyright SPH Media. All rights reserved.