A secret transit hub for Nvidia AI chips? Minister says Malaysian police on the case since April

The Malaysian government is probing allegations that the nation has become a covert hub for diverting advanced AI chips, including those from Nvidia, according to Home Minister Datuk Seri Saifuddin Nasution Ismail. The Royal Malaysia Police launched an inquiry in April 2025 following US claims that Malaysia is being exploited as a transit point for illicitly routed high-performance chips.

The investigation, overseen by the Ministry of Investment, Trade and Industry, involves several regulatory bodies, including Bank Negara Malaysia, the Inland Revenue Board, the Malaysian Communications and Multimedia Commission, the Customs Department, and the police. Saifuddin confirmed that the police began probing the allegations immediately after they emerged, but has not disclosed whether any evidence has been uncovered to support the claims.

He emphasized that the investigation is complex and multi-faceted, involving layered inquiries. The police are also assessing whether Malaysia has indeed been used as a transit hub for these chips, a matter relayed to the Ministry of Investment, Trade and Industry.