KUALA LUMPUR: The Ministry of Investment, Trade and Industry (MITI) has found no proof of high-performance artificial intelligence (AI) chips being smuggled into Malaysia, according to its minister, Tengku Datuk Seri Zafrul Tengku Abdul Aziz.
He stated that MITI has been coordinating with enforcement agencies, including the police, Customs Department, and the Malaysian Communications and Multimedia Commission (MCMC), alongside industry stakeholders to verify the claims.
“So far, we have not found any (evidence). We have spoken to the United States (US) and big players to cooperate and work with us. If there is any evidence, we will definitely take action. The investigation continues,“ he said during a press conference on MITI’s second-quarter 2025 performance report.
Tengku Zafrul noted that Malaysia’s expanding data centre industry has driven significant demand for AI chips, raising concerns among international observers.
“I think that has raised some red flags because Malaysia has started to be a dominant player in the industry,“ he added.
Earlier this week, MITI introduced immediate export, transhipment, and transit controls for US-origin high-performance AI chips under the Strategic Trade Act 2010.
The minister reiterated the government’s commitment to maintaining a transparent and lawful trade environment.
“We want to ensure there is a responsible trade, and we are currently reviewing the listing of AI chips under the Strategic Item List (SIL). We also want to make sure that we are in compliance with international standards and obligations,“ he said, stressing the need to prevent secondary sanctions affecting Malaysia’s economy. – Bernama
