Malaysia – Govt taking ‘necessary actions’ to address alleged fraud in US-sanctioned AI chips
KUALA LUMPUR (March 4): The Malaysian government is taking the necessary actions to determine whether the country’s laws have been breached in the alleged shipment of US-sanctioned artificial intelligence (AI) chips to the country from Singapore, said the Ministry of Investment, Trade and Industry (Miti).
This came after Singapore local media on Monday reported that three individuals were charged with fraud in Singapore over alleged movement of Nvidia chips despite US sanctions. Singaporean authorities later confirmed that they are now investigating if the servers, made by Dell and Super Micro, were sent to other countries.
The news also saw Nvidia’s sole contract manufacturer in Southeast Asia, NationGate Holdings Bhd’s (KL:NATGATE) shares closed at limit-down levels on Monday. The counter plunged 55 sen or 29.7% to RM1.30, erasing all gains made since December 2023.
On Tuesday, it rebounded 15 sen or 11.5% to RM1.45 for a market cap of RM3.3 billion.
Miti said concurrently, it will continue to work closely with the US and Singapore to find effective ways to address the issue of the trade involving US-sanctioned chips.
“Malaysia stands firm against any individual or company that attempts to circumvent export controls or engage in illicit trade activities.
It said in a statement on Tuesday,
Miti remains committed to facilitating legitimate trade and in fostering a secure and responsible investment destination, ensuring that all technology-related investments align with international best practices as well as comply with multilaterally agreed laws and regulations,
The ministry stressed that Malaysia adheres to all established multilaterally-agreed legal provisions on trade, and has a robust system in place to monitor and control exports, transit, transhipment and brokering of strategic items under the Strategic Trade Act 2010 (STA 2010).
It said,
While Malaysia maintains a neutral position on unilateral sanctions, Miti advised companies operating in the country to remain aware of other nations’ export controls to avoid the risk of sanctions on their goods or services,
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Malaysia – Govt taking ‘necessary actions’ to address alleged fraud in US-sanctioned AI chips, source
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