MITI denies granting clearance to Megaspeed, reviews re-exports of AI chips in Malaysia

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MITI denies clearance for Megaspeed, reviews AI chips

Highlights

MITI denies granting clearance to Megaspeed and is reviewing the re-export of AI chips linked to Speedmatrix in Malaysia.
The Ministry of Investment, Trade and Industry introduced export permit requirements for high-performance AI chips starting in July 2025, and is working with Customs, Singapore, and the U.S.
Malaysia stresses that it will not allow the country to be used to circumvent export controls and will take action against companies that break the law.

This article was translated from the original. Read the original version by our correspondent here.

Ministry clarification and compliance review

According to The Edge Malaysia, MITI said in a statement that verification visits to the data center hosting Speedmatrix were simply part of regular sector monitoring and should not be interpreted as evidence that the company had been granted clearance.

The ministry explained that Speedmatrix operates as a tenant at a data center in Malaysia. MITI said any claims suggesting otherwise were inaccurate, but the statement did not specify what, if anything, had supposedly been cleared in relation to the two entities.

MITI is now working with the Royal Malaysian Customs Department to determine whether any AI chips imported into Malaysia for Speedmatrix’s operations have been re-exported to other countries, and whether those shipments complied with the law. The ministry said Malaysia would conduct its own independent review based on local laws and available evidence, and would take firm action against any company found to have breached the regulations.

Export controls and implications for the data center sector

MITI said importing servers and AI chips into Malaysia does not require a permit, but permits under the Strategic Trade Act 2010 have been required since July 2025 for the export, re-export, ship-to-ship transfer, or transit of high-performance AI chips made in the U.S. from or through the country. Providing Customs with false information about such goods is also a serious offense under the Customs Act 1967.

To strengthen safeguards, the ministry said it is working closely with authorities in Singapore and the U.S. and is considering additional measures to tighten controls if necessary. MITI added that although Malaysia does not enforce unilateral export controls imposed by other countries, companies operating here are expected to take those rules into account in their international dealings.

The ministry stressed that Malaysia remains open to investment in data centers and technology, but will not allow the country to be used to circumvent export controls. It also warned companies against misrepresenting their dealings with government agencies.

Previously, we outlined how risks in AI data center financing in the U.S. are rising due to costs, construction delays, and power constraints.

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