KUALA LUMPUR – Police have been investigating US allegations that Malaysia is being used as a transit hub for illicitly diverted advanced artificial intelligence (AI) chips since as early as April last year, Home Minister Datuk Seri Saifuddin Nasution Ismail revealed today.
Speaking to reporters here, Saifuddin confirmed that Bukit Aman opened an investigation paper under the Strategic Trade Act 2010 immediately after claims surfaced involving Nvidia’s high-performance processors.
“This is a matter of what is called diversion, because they allege there are proxy companies in Malaysia, or that it involves illicit procurement, or that Malaysia is said to be a transit country,” he said when asked whether the country had been affected by the controversy.
Pressed on whether police had formally initiated a probe, he replied: “Yes, as early as April 2025.”
Saifuddin noted that the multi-agency investigation is led by the Ministry of Investment, Trade and Industry (Miti) and involves Bank Negara Malaysia, the Inland Revenue Board (LHDN), the Malaysian Communications and Multimedia Commission (MCMC), the Customs Department, and the police.
He explained that uncovering evidence of illicit procurement or diversion requires complex, “layered” inquiries, adding that police findings on whether Malaysia was used as a transit point are relayed directly to Miti.
Because Washington raised its complaint through Miti, it falls on the trade ministry to channel updates back to the US, he said, though he stopped short of revealing whether investigators had uncovered any evidence backing the allegations.
His remarks follow Prime Minister Datuk Seri Anwar Ibrahim’s statement yesterday that there was no indication AI chips linked to the Nvidia-Megaspeed issue were exported from Malaysia, and that Putrajaya had yet to receive any formal request from Singapore or the US on the matter. Anwar added that Malaysia stands ready to cooperate with all relevant agencies.
Earlier, Miti stated it had never cleared Singapore-based Megaspeed International Pte Ltd or its Malaysian affiliate, Speedmatrix Sdn Bhd.
While no permit is required to bring AI chips into the country, Miti noted that since July 2025, anyone exporting, re-exporting, transshipping, or transiting high-performance US AI chips from or through Malaysia must obtain a permit under the Strategic Trade Act 2010.
The ministry is currently working with Customs to verify if any chips were re-exported. – November 14, 2026