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Jatronics just a trading company, not semiconductor manufacturer: Miti | Scoop
The Investment, Trade, and Industry Ministry said US actions against Jatronics is part of its broader sanctions targeting 300 entities from various countries, in connection with the Ukraine-Russia conflict. – Bernama file pic, June 5, 2024
News

Jatronics just a trading company, not semiconductor manufacturer: Miti

Firm is under scrutiny for its alleged supply of electronics to Russia for use in weapons production, based on its inclusion in a US sanctions list

Scoop Reporters
Updated
1:03 PM MYT

 

KUALA LUMPUR – The Investment, Trade, and Industry Ministry (Miti) has clarified the status of Jatronics Sdn Bhd in response to recent reports of sanctions from the United States. 

Contrary to earlier reports, the company is not a semiconductor manufacturer in Malaysia.

In a statement, the ministry said that Jatronics is a Malaysian trading company primarily engaged in “trading/wholesale of semiconductor and fabrication service”. 

Jatronics has come under scrutiny for its alleged supply of electronic components to Russian firms associated with its military-industrial complex, leading to its inclusion on the US’ unilateral sanctions list.

The ministry noted that the US Department of the Treasury’s action against Jatronics is part of its broader sanctions targeting 300 entities from various countries, including China, 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.”

The ministry said based on records, Jatronics is not a registered company under STA 2010 and has not applied for export permits.

Given global supply chain challenges and restrictions from unilateral sanctions, the ministry also advised companies to be aware of sanctions lists imposed by other countries, such as the US.

The ministry also urged exporters to be alert and stay informed of any trade-restrictive measures and unilateral sanctions imposed by Malaysia’s 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 US unilateral sanctions, while continuing to enhance the monitoring of international trade dealings of Malaysian exporters and manufacturers.

“Miti will 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.” – June 5, 2024

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