POLICE have been investigating allegations of illegal diversion of Nvidia artificial intelligence (AI) chips through Malaysia since April 2025, following claims by the United States (US) that the country may have been used as a transit hub for illicit procurement.
Home Minister Datuk Seri Saifuddin Nasution Ismail said the investigation was conducted under the Strategic Trade Act 2010 (Act 708), involving several enforcement and regulatory agencies, including Bank Negara Malaysia, the Investment, Trade and Industry Ministry (MITI) and the Malaysian Communications and Multimedia Commission (MCMC).
"To answer the question of whether police have opened an investigation paper, the answer is yes, as early as April 2025. We began investigations as soon as the allegations emerged.
"We have a task force called the Strategic Trade Action Committee (STAC), of which the police are one of the participating agencies, alongside several other regulatory bodies," he told reporters after officiating the People's Volunteer Corps (Rela) MADANI Adopted Village (KAM) and MADANI Adopted School (SAM) handover ceremony at Kampung Sungai Tiram, Lekir, in Beruas today.
Saifuddin said the police probe focused on allegations that Malaysia had been used as a transit hub to divert the chips to other countries through possible illicit procurement and proxy companies.
He said findings from the investigation were communicated to MITI as the lead agency for further action and coordination with the parties that raised the allegations.
"Whether the investigation establishes the allegations, including gathering evidence of illegal diversion or illicit procurement, involves several layers of investigation.
"The investigation is certainly complex, and so far I can confirm that updates on our probe have been communicated to MITI for it to relay to the relevant parties," he said.
On Friday, MITI said there were no indications or concrete evidence that Nvidia AI chips linked to Singapore-based Megaspeed International Pte Ltd and its subsidiary, Speedmatrix Sdn Bhd, had been illegally re-exported from Malaysia.
Prime Minister Datuk Seri Anwar Ibrahim also said Malaysia had yet to receive any formal request from Singapore or the US to investigate the matter. - November 14, 2026
