SITIAWAN, Nov 14 — The Royal Malaysia Police (PDRM) opened an investigation as early as April 2025 into US allegations that Malaysia is being used as a transit point for illicitly diverted advanced chips, Home Minister Datuk Seri Saifuddin Nasution Ismail said today.

Speaking to reporters here, Saifuddin was asked whether Malaysia had been affected by the issue involving Nvidia, whose chips power much of the world’s artificial intelligence (AI) development, and what steps had been taken.

“This is a matter of what is called diversion, because they allege there are proxy companies in Malaysia, or that it involves illicit procurement, or that Malaysia is said to be a transit country,” the minister said.

Saifuddin said the investigation is carried out under the Strategic Trade Act 2010. Several regulatory agencies are involved, including Bank Negara Malaysia, the Inland Revenue Board, the Malaysian Communications and Multimedia Commission (MCMC), the Customs Department and the police. The Ministry of Investment, Trade and Industry (Miti) is the lead agency.

Asked whether police had opened an investigation paper, he replied: “Yes, as early as April 2025.”

He said the police probe also covers whether Malaysia has become a transit hub, and that any findings are relayed to Miti. Because the US raised its complaint through Miti, he said, it is Miti’s responsibility to pass the feedback on to the complaining party.

Saifuddin said the police began investigating immediately after the allegations surfaced. Gathering evidence on illicit diversion or procurement involves “layered” inquiries that are highly complex, he said, and he confirmed that updates on the investigation’s progress have been conveyed to Miti.

He did not say whether police had found evidence supporting the allegations.

The remarks follow Prime Minister Datuk Seri Anwar Ibrahim’s statement yesterday that there was no indication AI chips linked to the Nvidia-Megaspeed issue were exported from Malaysia, and that Malaysia had received no formal request from Singapore or the US on the matter. Anwar said Malaysia would cooperate with all agencies involved.

Miti said earlier that it had never cleared Singapore-based Megaspeed International Pte Ltd or its Malaysian affiliate, Speedmatrix Sdn Bhd. It said no permit is needed to bring AI chips into Malaysia, but since July 2025 anyone exporting, re-exporting, transshipping or transiting high-performance US AI chips from or through the country must obtain a Miti permit under the Strategic Trade Act 2010. Miti said it was working with Customs to determine whether any chips had been re-exported.