KUALA LUMPUR – Malaysian company Jatronics Sdn Bhd made international headlines being among nearly 300 entities slapped with US sanctions over their alleged links with Russia.
All that was revealed by the US Department of State is that Jatronics supplied Tier 1 Common High Priority List (CHPL) items to companies based in Russia.
According to Washington’s Bureau of Industry and Security, Tier 1 CHPL items include semiconductors, particularly electronic integrated circuits which may have a significant role in the production of Russian precision-guided weapon systems.
However, as confirmed by Malaysia’s Investment, Trade and Industry Ministry (Miti), Jatronics is not a semiconductor manufacturer.
This then begs the question as to why the US applied sanctions against the company.
Following a search with the Companies Commission of Malaysia, Jatronics’ nature of business involves the trading of semiconductors which confirms the ministry’s assertion that the company is merely a wholesale trader of electronic chips.
Additionally, Jatronics has two addresses – one of which is an office in Menara Keck Seng at Jalan Bukit Bintang here while the other is a shoplot in Taman Usahawan Kepong.
The address at Menara Keck Seng, however, also belongs to a company running a virtual and office suites service.
When contacted on June 4 and 5, the suites service company revealed that Jatronics operates there but none of the staff members were available to speak.
Meanwhile, the Jatronics office at Taman Usahawan Kepong appears to share an address with a company secretarial business.
Jatronics accounts in 2023 revealed that it has RM22 million worth of current assets and RM2.3 million in non-current assets, while liabilities amounted to RM23 million.
The company also recorded a profit-after-tax of almost RM1 million last year.
SSM filings revealed two shareholders – Lee Sutt Har and Pang Woei Yn, who are also named as directors.
There is not much information available on Pang and Lee, but Pang appeared as a shareholder for the now-dissolved Sontek Technologies (formerly Actualink Services Sdn Bhd) involved in the trade of semiconductors and electronic components.
Also, a “Pang Woei Yn” appears in two now-defunct companies based in Nevada, US – Gemos Semiconductor Ltd and Crown Tech Holdings Ltd.
However, Scoop is unable to confirm if the individual “Pang Woei Yn” named in these US companies is the same shareholder in Jatronics.
Jatronics’ international business transactions
Al Jazeera reports that Jatronics made 50 deliveries to Russian entities worth more than US$3 million between April 2022 and September 2023.
Among them includes OOO Planar, a Russian company that the US alleges procures foreign technology for Russian military and space programmes.
However, based on Scoop’s findings, Russia is not the only country Jatronics does business with as it also recorded transactions in China.
Documents from Guangdong Dapu Telecom Technology Co Ltd revealed that Jatronics supplied 825,600 yuan (RM535,161) worth of electronic chips to the Chinese company in 2023.
Guangdong Dapu Telecom also mentioned that Jatronics is a wholesaler which supplies the Chinese company semiconductors obtained from a Taiwanese company.
US sanctions do not mean Jatronics violated local or international laws
In addition to clarifying Jatronics’ nature of business, Miti said Malaysia does not adhere to unilateral sanctions imposed by individual countries.
Instead, Malaysia adheres to multilateral sanctions imposed by the United Nations Security Council (UNSC) via their resolutions.
Miti added that Putrajaya enforces Strategic Trade Management (STM) through the Strategic Trade Act 2010 (STA) which regulates the exports, transits, transhipments and brokering of strategic items, particularly those that could potentially be used for developing sophisticated military weapons.
Given that Russia is not sanctioned by UNSC, the country is not included under STA regulations.
“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,” the ministry said in a statement yesterday. – June 7, 2024