Malaysia denies clearing Megaspeed, checks for illegal chip re-exports - The Business Times

[JOHOR BAHRU/KUALA LUMPUR] Malaysia’s Ministry of Investment, Trade and Industry (Miti) has clarified that it has never cleared Singapore-based Megaspeed International or its Malaysian affiliate Speedmatrix, and is actively reviewing whether artificial intelligence chips brought into the country have been improperly re-exported.

In a statement on Friday (Nov 13), Miti said Speedmatrix, a tenant at Malaysian data centres, brings its own servers and AI chips into the country for its operations.

Importing AI chips does not currently require a permit or licence. However, exporting, re-exporting, transhipping or transiting high-performance US AI chips from or through Malaysia has required a Miti permit under the Strategic Trade Act 2010 since July 2025.

Providing false information to customs about such goods is also a serious offence under the Customs Act 1967, it added.

The ministry also highlighted that the routine verification visits to data centres occupied by Speedmatrix were part of its regular monitoring of the sector and should not be interpreted as clearing the companies of wrongdoing.

“Any verification visits carried out by Miti at these facilities are part of its regular monitoring of the data centre sector, and should not be taken to mean that a company has been cleared. Any suggestion otherwise is inaccurate,” it said.

The clarification comes amid scrutiny of Megaspeed over suspected diversion of restricted Nvidia AI chips to China. Bloomberg has reported that the US Justice Department was working with the Commerce Department’s Bureau of Industry and Security on the investigation.

Investment, Trade and Industry Minister Johari Abdul Ghani had earlier said the ministry had not been presented with evidence that Speedmatrix had breached Malaysian law.

Miti is working with the Royal Malaysian Customs Department to determine whether chips brought into Malaysia were subsequently re-exported and whether those shipments complied with the law. Its statement did not announce any finding of wrongdoing.

Malaysia would conduct its checks independently under domestic law and based on available evidence, the ministry said. It was also working closely with authorities in Singapore and the US, and considering further measures to strengthen controls.

Separately, Singapore’s Ministry of Home Affairs said on Thursday that investigations into Megaspeed and six individuals remained ongoing.

Singapore authorities were examining whether servers exported through the city-state to Malaysia had subsequently been routed elsewhere, contrary to declarations made in Singapore.

Megaspeed said on Thursday that it had cooperated with US inspections and retained a US law firm to conduct a comprehensive inventory of its graphics processing units (GPUs) and independently verify its export-control compliance practices.

Miti said that while Malaysia does not enforce other countries’ unilateral export controls, companies operating locally were expected to take those restrictions into account in their international business.

It also warned companies against misrepresenting 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,” the ministry said, adding that stern action would be taken against companies found to have broken Malaysian law.

A directory at Eco Galleria, a commercial development in Iskandar Puteri in Malaysia’s southern state of Johor, listed Speedmatrix at three units when The Business Times visited on Friday.

Records from the Companies Commission of Malaysia, the country’s corporate registry, listed one of those units as MSFusion’s registered address.

Malaysia-listed Crescendo previously identified MSFusion, the buyer of a RM263.2 million (US$64.4 million) parcel of land for a data centre, as a Megaspeed subsidiary. BT saw no signage bearing MSFusion’s name at the premises, nor was it included in the directory at Eco Galleria.

Speedmatrix’s office interior was obscured from view, and no activity was apparent during the visit. A worker at a neighbouring business said she had seen staff entering and leaving on other days.

According to The Straits Times, Megaspeed operated seven overseas subsidiaries in 2024, including three in Malaysia: cloud providers Speedmatrix and Megaspeed International, as well as MSFusion. 

Megaspeed also owned majority or full stakes in entities across Thailand, Indonesia, Australia, and the US. 

Additionally, corporate intelligence platform Sayari records show an Nvidia GPU baseboard shipment arrived for Speedmatrix on Nov 18, 2025.

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