Malaysia Investigates Possible Illegal Re-Exports of U.S. AI Chips

The Ministry of Investment, Trade and Industry said Friday it is working with Malaysia’s customs department to determine whether the country’s controls were breached. Importing AI chips into Malaysia does not require a permit or license. But since July 2025, permission has been required to move high-performance U.S. AI chips from or through the country.

The ministry said Malaysia does not enforce other countries’ unilateral export controls, but expects companies operating there to take those controls into account in international business. It also said it has not cleared Singapore-based data company Megaspeed International or its Malaysian affiliate, Speedmatrix, of wrongdoing related to export restrictions.

The U.S. and Singapore are scrutinizing Megaspeed over allegations that it may have transshipped billions of dollars’ worth of export-restricted Nvidia AI chips to China. Megaspeed, a customer of Nvidia at the center of a scandal involving the company’s former chief executive Jensen Huang, said Thursday it had hired a leading U.S. law firm to independently verify its compliance with U.S. export controls. The company did not immediately respond Friday to a request for comment on the Malaysian ministry’s statement.

The ministry said Speedmatrix is a tenant at Malaysian data centers and that any verification visits by the ministry are part of routine monitoring of the sector, not evidence that a company has been cleared. Malaysia is working with U.S. and Singaporean authorities and considering whether stronger controls are needed. It said it would conduct its own checks under Malaysian law and on the basis of available evidence.