Instead, it said in a statement that the company functions as a trading company engaged in the wholesale trading of semiconductor products and fabrication services.

The ministry also said that Malaysia enforces strategic trade management through the Strategic Trade Act (STA) 2010, regulating the export, transit, transhipment, and brokering of strategic items, particularly those with potential military applications.

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

Miti also said that Malaysia adheres to multilateral sanctions and the “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,” it said.

Miti’s confirmation comes a day after second finance minister Amir Hamzah Azizan said he was made to understand that the Malaysian company was not a semiconductor producer but a trading company that sells semiconductor-related hardware.

It was previously reported that the US had imposed sanctions on Jatronics for allegedly supplying Russia’s military with crucial electronic components.

In its statement, Miti also said that the action by the US treasury department against Jatronics was part of broader sanctions related to the Ukraine-Russia conflict, targeting entities from various countries.

It advised companies to stay informed about the sanctions imposed by other countries, especially the US, and to monitor trade measures closely.

“Miti has been engaging with the US embassy in Kuala Lumpur on US unilateral sanctions while continuing to enhance the monitoring of the international trade dealings of Malaysian exporters and manufacturers,” it said.

The ministry added that it would continue regular engagement with key trading partners to address concerns, clarify Malaysia’s neutral stance, and promote a safe and secure global trading environment.