Malaysian police have been investigating allegations that the country was used to get around US export restrictions on Nvidia AI chips since April 2025, Home Minister Saifuddin Nasution Ismail said on November 14. Speaking at a press conference in Sitiawan, Perak, he said the probe is being conducted under the Strategic Trade Act 2010 and also examines whether Malaysia served as a transit hub.
“To answer the first question, have the police opened an investigation paper? The answer is yes, as early as April 2025.”— Saifuddin Nasution Ismail, Malaysian Home Minister
The police investigation followed US allegations involving proxy companies, illicit procurement and the diversion of advanced AI chips through Malaysia. Saifuddin declined to say whether investigators had found evidence supporting those allegations, describing the case as one that involves multiple layers of investigation. He also did not say whether any specific company is under police investigation.
The scrutiny centers on Singapore-based Megaspeed International Pte Ltd and its Malaysian subsidiary, Speedmatrix Sdn Bhd. Megaspeed reportedly bought US$4.8 billion (RM19.5 billion) worth of Nvidia AI chips between June 2024 and February 2026, and advanced Nvidia chips were allegedly shipped to data centres in Malaysia and Indonesia to serve Chinese customers.
Key facts
- 01Malaysian police have investigated alleged Nvidia AI chip export-control evasion since April 2025, Home Minister Saifuddin said Nov. 14.
- 02Megaspeed reportedly bought US$4.8 billion in Nvidia AI chips between June 2024 and February 2026.
- 03MITI says it never cleared Megaspeed or its Malaysian unit Speedmatrix and is checking whether chips were re-exported.
- 04Since July 2025, re-exporting high-performance US AI chips from Malaysia requires a MITI permit under the Strategic Trade Act 2010.
- 05PM Anwar Ibrahim said Nov. 13 there was no indication so far that Megaspeed-linked chips left Malaysia.
Megaspeed denies any involvement in illicit chip trading and says inspections by US and Malaysian officials, as well as by Nvidia, found no wrongdoing. The company says on its website that it takes its US compliance obligations extremely seriously.
Malaysia's Investment, Trade and Industry Ministry (MITI) is leading a multi-agency investigation that includes the police, Bank Negara Malaysia, the Inland Revenue Board, the MCMC and the Customs Department. Saifuddin said police have been sending progress updates to MITI, which communicates findings to US authorities.
MITI said on November 13 that it had never cleared Megaspeed or Speedmatrix of wrongdoing. Speedmatrix is a tenant at data centres in Malaysia and brings its own servers and AI chips into the country, which currently requires no permit or licence. The ministry is working with the Royal Malaysian Customs Department to determine whether any of those chips were later re-exported and, if so, whether those shipments complied with Malaysian law.
That distinction is the legal crux. Since July 2025, anyone seeking to export, re-export, transship or transit high-performance US-origin AI chips from or through Malaysia must first obtain a MITI permit under the Strategic Trade Act 2010. Giving false information to customs about such goods is an offence under the Customs Act 1967, and MITI said it is considering further measures to strengthen controls where necessary.
Prime Minister Anwar Ibrahim said on November 13 that there was no indication so far that AI chips linked to the Nvidia-Megaspeed case had been exported from Malaysia, citing a report MITI gave him that morning. He said Malaysia had not received any formal request from Singapore or the US, but would cooperate with all agencies involved.
“Ours is a trading nation. We welcome investments. We want to make sure the rules are being followed.”— Anwar Ibrahim, Prime Minister of Malaysia
Megaspeed is also under investigation in Singapore, where authorities said servers containing the chips were exported through the city-state to Malaysia and were suspected of being delivered to other destinations, contrary to declarations made in Singapore. Singapore said it barred Alice Huang, a Chinese national and former Megaspeed executive, from re-entering the country in February for giving investigators inaccurate information about her role at the company.
This is not the first time Malaysia has been linked to questions about Nvidia hardware. In March 2025, Singapore disclosed that servers potentially containing Nvidia chips had been shipped to Malaysia as part of a fraud case; MITI opened inquiries with local agencies and US authorities and announced no findings establishing Malaysia's involvement. Nvidia is scheduled to report quarterly earnings on November 17.
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