KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Background
Singapore’s fraud case involving three individuals accused of illegally transferring Nvidia AI chips to China’s DeepSeek has been adjourned to August 22. This case highlights rising geopolitical and supply chain risks surrounding AI chip exports.
Key Details:
Defendants: Singaporeans Aaron Woon Guo Jie (41), Alan Wei Zhaolun (49), and Chinese national Li Ming (51).
Charges: Fraud through false representations to server suppliers about end users.
Suppliers involved: Dell Technologies and Super Micro Computer.
The U.S. has banned Nvidia AI chip exports to China since 2022.
Why It Matters to Investors
Singapore accounted for 18% of Nvidia’s FY2024 revenue, though actual shipments were below 2%. The city-state serves primarily as an invoicing hub, which complicates tracking actual chip flows.
This case ties into a broader police probe into 22 entities suspected of organizing chip rerouting schemes — raising red flags for companies embedded in global AI infrastructure.
Investor Takeaways:
Export risk is real: Nvidia and its ecosystem face tightening scrutiny across trade hubs like Singapore and Malaysia.
Supply chain integrity is under watch — especially in high-demand, restricted tech like AI chips.
Volatility could rise: Legal probes and geopolitical restrictions may impact companies tied to Nvidia’s supply web.
MoneyMaster Insight:
As AI chips become central to both innovation and national security, investors must factor in regulatory risks. Keep an eye on court outcomes and U.S. enforcement signals. For now, Nvidia remains strong, but its global logistics chain may face more audits and compliance pressures ahead.
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