Miti: Companies linked to Nvidia scandal not in the clear, AI chips smuggling claims probed

Putrajaya affirmed it has not “cleared” Singapore-based Megaspeed International Pte Ltd and its Malaysian subsidiary Speedmatrix Sdn Bhd, amid allegations that the entities had re-exported Nvidia AI chips in contravention of US trade sanctions on China.

While the Investment, Trade, and Industry Ministry did not disclose what the two companies were not “cleared” of, it said it is working with the Customs Department to establish whether chips brought into Malaysia, if any, were re-exported in accordance with the law.

The ministry's statement today came after news emerged that Jensen Huang, the former CEO of American tech giant Nvidia, was having an affair with a woman suspected of being a Chinese spy and accused of circumventing US sanctions on AI-chip exports to China.

The woman, Alice Huang, is said to have been a top executive at Megaspeed International, which was allegedly involved in exporting Nvidia AI chips to data centres in Malaysia and Indonesia that appeared to serve customers in China.

READ MORE: How is Malaysia linked to Nvidia spy affair scandal?

On Nov 10, Investment, Trade, and Industry Minister Johari Abdul Ghani told Malaysiakini that at the time, the ministry had not commenced any investigation against Speedmatrix as it had not been presented with any evidence that it had contravened Malaysian law.

He later told reporters yesterday that Malaysia will look into whether Speedmatrix has breached the country’s export restrictions, noting that Putrajaya has not yet received formal requests from foreign authorities on the company.

In its statement today, the ministry clarified that while a permit or licence is not required to bring AI chips into Malaysia, the export or re-export of high-performance US AI chips from or through Malaysia must first obtain a permit from the ministry under the Strategic Trade Act 2010.

It noted that as a data centre tenant in Malaysia, Speedmatric brings its own servers and AI chips into the nation for its operations. However, it warned that giving false information to Customs about such goods is also a serious offence under the Customs Act 1967.

“Malaysia will carry out its own checks independently, in accordance with Malaysian law and based on the evidence available,” it added.

Strengthen controls 'where necessary'

It also said it is working closely with authorities in Singapore and the United States while considering further measures to strengthen controls “where necessary”.

“While Malaysia does not enforce unilateral export controls imposed by other countries, all companies operating in Malaysia are expected to take such controls into account in their international business.

“The ministry also reminds companies not to misrepresent their dealings with government agencies. Malaysia welcomes investment in data centres and technology, but will not allow itself to be used to get around export controls,” it highlighted.

It further stressed that any verification visits the ministry carries out at facilities such as Speedmatrix’s data centre here are merely part of its regular monitoring of the sector, and “should not be taken to mean that a company has been cleared”.

“Any suggestion otherwise is inaccurate,” it said, without detailing who made the claim.

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