Seek US clarification over sanctions on local tech firms, govt told

SHAH ALAM - The Malaysian government needs to seek clarification from the United States (US) regarding sanctions imposed on six Malaysian-based companies accused of ‘aiding’ Russia’s war efforts.

Malaysia University of Science Technology economist Professor Emeritus Dr Barjoyai Bardai said that allegations that exported products were intended for military use were serious and required further investigation.

He stressed that if these items were meant for domestic use, the US should not take such action, as Malaysia had not cut trade ties with Russia but only refrained from supporting the Russia-Ukraine conflict.

“I see that the companies sanctioned are technology companies, some of which produce microchips, a common Malaysian export. These companies may have previously exported to the US without any issues, so the question is, why impose sanctions suddenly?

“We might need to consider the strategy the government wants to pursue. Are we yielding to pressure from the US and other entities, or does Malaysia aim to maintain a neutral stance?

“If we don’t want to be seen as siding with Russia or any party involved in attacking Ukraine, we could present that rationale. Currently, we see media reports on Turkey being accused of siding with Israel while supplying oil to various countries,” he told Sinar on Monday.

He made these remarks in response to sanctions imposed by the US State Department on six Malaysian-based companies that have either operated or are still operating in Russia’s manufacturing sector.

These sanctions aimed to block producers, exporters and importers of goods deemed critical to supporting Russia’s industrial and military base, with these companies among nearly 400 entities and individuals sanctioned.

Barjoyai added that some Middle Eastern countries engage in similar practices, supplying goods directly or indirectly to Israel.

“So, we might need to examine it from that perspective to assess whether these companies are acting appropriately or prioritising short-term profits at the expense of Malaysia’s goal of maintaining neutrality.

“We need to know if the goods exported are indeed for Russia’s war preparations or if they are simply technology supplies for standard transactions,” he said.

When asked if these sanctions could be a form of pressure on Malaysia due to its membership in BRICS, he disagreed.

“I think it’s a bit of a stretch to say it’s due to BRICS membership. As we know, Malaysia is an open economy, with 85 per cent of its products exported globally.

“Our primary trading partners are BRICS countries, such as China and Russia,” he said.