Malaysia checks whether Megaspeed unit re-exported AI chips

Malaysia's trade ministry said on Friday (Nov 13) it was working with the Royal Malaysian Customs Department to find out whether AI chips brought into the country by SpeedMatrix had been re-exported, and whether any such shipments were lawful, CNA and The Straits Times reported. SpeedMatrix is the Malaysian subsidiary of Singapore-based cloud computing firm Megaspeed.

Megaspeed is under scrutiny over allegations that it steered Nvidia AI chips to China in breach of US export rules. The checks follow the resignation of Nvidia chief executive Jensen Huang over an affair. CNA said the affair was reportedly with Alice Huang, a former top executive at Megaspeed. Both outlets described her as a suspected Chinese spy.

The Ministry of Investment, Trade and Industry (MITI) said it "has never cleared" Megaspeed or SpeedMatrix. Verification visits to data centres where SpeedMatrix is a tenant were part of regular monitoring and "should not be taken to mean that a company has been cleared", it said. The Straits Times noted that Minister Johari Ghani had said on Nov 10 that SpeedMatrix was not under investigation, as there was no "credible evidence or a formal request from any foreign authority".

Importing AI chips into Malaysia needs no permit. Since July 2025, however, a permit has been required to export, re-export, transship or transit high-performance US AI chips. The ministry said giving customs false information about such items was a "serious offence" and that it was working closely with Singapore and the US while considering further controls. "Malaysia welcomes investment in data centres and technology, but will not allow itself to be used to get around export controls," it said, according to CNA.

Prime Minister Anwar Ibrahim said on Friday, referring to Nvidia chips being moved out of Malaysia by Megaspeed: "There has not been any indication of that." He told reporters Malaysia had received no formal request from Singapore or the US, but "we will, of course, collaborate", The Straits Times reported.

In Singapore, the Ministry of Home Affairs said on Thursday that servers bought by companies under investigation had been exported through Singapore to Malaysia without entering the Singapore market. CNA reported that police were investigating whether the servers were later routed to another destination, contrary to the companies' declarations in Singapore. Singapore said it had barred Alice Huang from re-entering the country in February for giving investigators inaccurate information about her role at Megaspeed. She was not investigated for espionage. According to The Straits Times, Singapore authorities also said they had "received limited information or assistance" from US counterparts during a 2025 probe.

The market damage has been heavy. CNA said the scandal had wiped almost half a trillion dollars off Nvidia's market value. The Straits Times reported that YTL Power had lost an eighth of its valuation, or RM5.5 billion, since Monday as investors gauged its exposure to Megaspeed.

Banking executives told The Straits Times that about half of all financing deals for upcoming data centre projects in Malaysia had been halted. They expect delays of up to six months until Washington's position becomes clear.

Sources: CNA, Malaysia says probing Megaspeed subsidiary over possible AI chip diversion; The Straits Times, Malaysia says it is working with S’pore, US to curb chip smuggling as AI sector braces itself for impact.