MITI clarifies Jatronics “trading/wholesale of semiconductor and fabrication service” and not as reported

5 June 2024

KUALA LUMPUR: The Ministry of Investment, Trade & Industry (MITI) clarified that Jatronics Sdn Bhd (“Jatronics”) is not a semiconductor manufacturer in Malaysia, as reported.

Jatronics is a Malaysian trading company primarily engaged in “trading/wholesale of semiconductor and fabrication service”. Jatronics has been alleged to supply electronic components to Russian firms linked to the militaryindustrial complex and has recently been added to the US unilateral sanction list.

MITI in a statement highlighted that The US Department of the Treasury’s action against Jatronics is part of its broader sanctions targeting 300 entities from various countries, including the People’s Republic of China (PRC), Belgium, Türkiye, Slovakia, and the UAE, in connection with the Ukraine-Russia conflict.

Malaysia enforces the Strategic Trade Management (STM) through the Strategic Trade Act 2010 (STA 2010), which regulates the exports, transits, transhipments and brokering of strategic items, particularly those that could potentially be used for developing sophisticated military weapons.

STM requires exporting companies and those in the supply chain to undertake all necessary efforts to ascertain key information i.e. the final destination, end-user and the usage of the product.

Based on records, Jatronics is not a registered company under STA 2010 and has not applied for export permits.

MITI also clarified that Malaysia adheres to multilateral sanctions and adopted “restricted or prohibited end-user list” under the United Nations Security Council Resolutions (UNSCR). Russia has not been listed by UNSCR and therefore is not included under STA 2010.

Given global supply chain challenges and restrictions from unilateral sanctions, MITI advises companies to be aware of sanction lists imposed by other countries, such as the U.S. MITI also urges exporters to be alert and stay informed of any trade-restrictive measures and unilateral sanctions imposed by major trading partners to ensure they will not be subjected to any sanctions or other non-tariff barriers.

MITI has been engaging with the US Embassy in Kuala Lumpur on U.S unilateral sanctions, while continuing to enhance the monitoring of international trade dealings of Malaysian exporters and manufacturers.

MITI wouod also continue its regular engagement with its key trading partners to address concerns, clarify Malaysia’s neutral stance, and ensure that our economic decisions continue to promote a safe and secure global trading environment.