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

The Royal Malaysia Police (PDRM) launched an inquiry in April 2025 into claims that Malaysia could be exploited as a transit point for illegally diverted Nvidia AI chips, according to Home Minister Datuk Seri Saifuddin Nasution Ismail. Speaking to the press, Saifuddin clarified that the allegations involve alleged proxy companies, illicit procurement, and a transit country status for the technology.

This investigation is conducted under the Strategic Trade Act 2010, with various regulatory bodies, including Bank Negara Malaysia, Inland Revenue Board, Malaysian Communications and Multimedia Commission (MCMC), Customs Department, and the police, all part of the effort. The Ministry of Investment, Trade and Industry (Miti) is leading the probe.

Saifuddin confirmed that the police inquiry started immediately upon the allegations surfacing, with evidence gathering being complex and ongoing. Updates on the investigation’s progress have been shared with Miti. He did not disclose if the police had found evidence to support the claims. Prime Minister Anwar Ibrahim previously stated there was no evidence of exported AI chips linked to the Nvidia-Megaspeed issue, nor had Malaysia received any formal requests from Singapore or the US.

Miti has stated it never cleared Megaspeed International Pte Ltd or its Malaysian affiliate, Speedmatrix Sdn Bhd, and that no export permit is needed for AI chips into Malaysia, though permits are required for exporting, re-exporting, transshipping, or transiting high-performance US AI chips since July 2025.