No Malaysian probe yet into Nvidia customer Megaspeed’s unit; firm earlier cited ministry checks

[JOHOR BAHRU] Malaysia has not initiated an investigation into Speedmatrix, the Malaysian subsidiary of Singapore cloud provider Megaspeed, said Minister of Investment, Trade and Industry Johari Abdul Ghani on Tuesday (Nov 10).

His comments followed a Megaspeed statement issued in December 2025, that institutions including the Ministry of Investment, Trade and Industry (Miti) had conducted on-site inspections and reviews that found no evidence of illicit chip transfers or other illegal activities.

Johari told news portal Malaysiakini that the ministry had not been presented with evidence that Speedmatrix had contravened Malaysian law.

Credible evidence or a formal request from foreign authorities would be assessed under Malaysia’s laws and processes, he said, adding that the country would not allow itself to be used as a channel to circumvent export controls.

In a statement dated Dec 23, 2025, responding to a Bloomberg report, Megaspeed said it had undergone “multiple on-site inspections and reviews” over the preceding six months by institutions including the US Commerce Department’s Bureau of Industry and Security, Miti and Nvidia. It denied wrongdoing.

The Business Times has asked Miti whether it conducted the checks cited by Megaspeed, which facilities they covered, what they found and whether these efforts were part of a formal investigation.

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As at press time, BT has not received a response. 

Megaspeed is under scrutiny over whether it helped to channel restricted Nvidia chips to China. Bloomberg has reported that the US Justice Department is investigating Megaspeed. 

Nvidia’s board has also opened an independent investigation into whether its CEO Jensen Huang was the target of a foreign intelligence effort. The move follows reports about his relationship with former Megaspeed executive Alice Huang, whom US intelligence agencies reportedly believe is a Chinese intelligence asset.

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Nvidia’s board said it had no reason to believe that company secrets or national security had been compromised.

Speedmatrix received more than 200 shipments of Nvidia technology restricted from export to China between June 2024 and June 2025, The New York Times reported last year, citing trade records.

Separately, Megaspeed’s Malaysian expansion plans include a proposed data centre in Bandar Cemerlang Industrial Park in Kota Tinggi, Johor. It is undertaking this through MSFusion, which Bursa Malaysia-listed developer Crescendo Corp referred to in stock exchange filings as another Megaspeed subsidiary. 

In an Aug 27 filing, Crescendo Corp disclosed that its subsidiary’s solicitors had issued a default notice to MSFusion over RM225.9 million in outstanding principal payments under an agreement to buy 52.54 acres of land.

MSFusion was given 14 days from Aug 27 to remedy the default, failing which the seller would be entitled to terminate the agreement. On Sep 9, Crescendo announced that the balance purchase price and late-payment interest up to Aug 26 had been fully paid to its solicitors.

That announcement did not identify the source of funding.

Bloomberg separately reported in April that Bridge Data Centres had told lenders in February that 68.4 megawatts of capacity previously earmarked for Megaspeed at one of its Malaysian facilities had been reassigned to cloud provider Zenlayer.

BT has sought comment from Megaspeed on its Malaysian operations and MSFusion’s project, and from Crescendo on the land transaction.