Malaysia investigates chip flow and clarifies that Megaspeed has not violated regulations
The Ministry of Investment and Trade is cooperating with the Royal Customs Department to investigate whether chips shipped into Malaysia are re-exported to other countries.
Quick Look
- The Malaysian Ministry of Investment and Trade clarified that it has never determined that Singaporean company Megaspeed and its related company Speedmatrix have not violated regulations.
- It is cooperating with the Royal Customs Department to check whether the chips are re-exported, and emphasized that Malaysia will not be allowed to use Malaysia to circumvent export controls.
AI-generated summary
Why It Matters
The Malaysian Ministry of Investment and Trade issued a statement clarifying that it has never determined that Singaporean company Megaspeed and its Malaysian affiliate Speedmatrix have no violations. Speedmatrix rents a data center in Malaysia and transports its own servers and AI chips into Malaysia for operational use. Currently, there is no need to obtain a permit or license to transport AI chips into Malaysia. However, starting from July 2025, anyone who exports or re-exports high-performance AI chips from the United States from Malaysia, or transships or transits such chips through Malaysia, must obtain prior permission in accordance with the Strategic Trade Act 2010.
Megaspeed, a Singapore-based data center operator, is involved in a chip procurement dispute. (AFP)
[Central News Agency] The Malaysian Ministry of Investment, Trade and Industry (MITI) issued a statement today stating that it has never determined that Singaporean company Megaspeed and its Malaysian affiliate Speedmatrix have not violated any regulations. The Ministry of Investment and Trade is cooperating with the Royal Malaysian Customs Department to find out whether any batch of chips shipped into Malaysia is re-exported to other countries, and conduct independent verification in accordance with the law.
Huida CEO Huang Yanxun admitted extramarital affairs, and Singapore-based data center operator Megaspeed was involved in a chip procurement controversy. The Malaysian Ministry of Investment and Trade issued a statement today.
The Ministry of Investment and Trade said that Speedmatrix is a tenant of data centers in Malaysia. The Ministry of Investment and Trade has sent personnel to relevant facilities in the past to inspect, but this is a routine supervision of the data center industry. The inspection should not be regarded as the Ministry of Investment and Trade has determined that the relevant enterprises have passed the review or have not violated regulations.
According to a statement from the Ministry of Investment and Trade, Speedmatrix rents a data center in Malaysia and transports its own servers and artificial intelligence (AI) chips into Malaysia for operational use. Currently, there is no need to obtain a permit or license to transport AI chips into Malaysia. However, starting from July 2025, anyone who exports or re-exports high-performance AI chips from the United States from Malaysia, or transships or transits such chips through Malaysia, must obtain prior permission in accordance with the Strategic Trade Act 2010. Providing false information to the Customs regarding such goods is a serious offense under the Customs Act 1967.
The Ministry of Investment and Trade stated that to strengthen these control measures, Malaysia is working closely with the competent authorities in Singapore and the United States and will consider taking further measures if necessary. Malaysia does not enforce export controls unilaterally imposed by other countries, but all companies operating in Malaysia should take such controls into consideration when conducting international business.
The Ministry of Investment and Trade emphasized that Malaysia welcomes investment in data centers and technology fields, but will not allow anyone to use Malaysia to circumvent export controls. The government will take stern action if found to have violated Malaysian laws.
What to Watch
AI outlook — possibilities, not facts
The Malaysian Ministry of Investment and Trade and the Royal Customs Department will complete independent inspections of chip re-exports and take action in accordance with the law.
Likely · Within weeks
Open Questions
- Are the chips shipped into Malaysia re-exported to other countries?
- What is the specific business relationship between Megaspeed and Speedmatrix?
- When is the investigation expected to be completed? What specific actions will be taken if a violation is identified?





