Malaysia Vows Action Against Companies Involved in Nvidia Fraud Case

Malaysia's Minister of Investment, Trade and Industry, Tengku Zafrul Aziz, has stated that the country will take "necessary action" against Malaysian companies found to be involved in a fraud case linked to Nvidia's AI chips. The announcement comes after Singapore's Law and Home Affairs Minister, K Shanmugam, revealed that servers containing Nvidia's AI chips, which are subject to US export restrictions, may have been sent to Malaysia.

The investigation, which is being conducted by the Investment, Trade, and Industry Ministry (Miti), is focused on the allegation that Nvidia's AI chips in servers linked to a fraud case were moved from Singapore to Malaysia. Miti has stated that it will issue comments once it receives further details on the matter.

Singapore's Shanmugam had said that the servers in the fraud case may have contained Nvidia's artificial intelligence chips, which were then sent to Malaysia. He added that "there may have been false representation on the final destination of the servers." The chips were embedded in servers supplied by Dell and Supermicro to Singapore-based companies before they went to Malaysia, according to a Singaporean news report.

Malaysia's Tengku Zafrul Aziz has stated that the country has no information that data center companies operating in Malaysia are "not using the chips that they are supposed to be using." However, he acknowledged that the country is investigating if they are involved in the alleged fraud case. He also emphasized that Malaysia will discuss the matter with Singapore and that the companies would be held accountable by the relevant authorities if found guilty.

The incident has raised concerns about the potential impact on Malaysia's reputation as a destination for foreign direct investment, particularly in the technology sector. However, Tengku Zafrul Aziz has reassured investors that Malaysia is committed to maintaining a stable and secure business environment.

In conclusion, Malaysia's commitment to taking necessary action against companies involved in the Nvidia fraud case demonstrates the country's dedication to upholding the rule of law and maintaining a fair business environment. As the investigation unfolds, investors should closely monitor the situation and assess the potential impact on Malaysia's investment climate.