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Malaysia adopts neutral approach to AI chip access for data centres

Malaysia ensures data centres have competitive access to AI chips from US and China while maintaining data security and sovereignty through strategic policies.

KUALA LUMPUR: Malaysia maintains a neutral and inclusive approach to artificial intelligence chip access to benefit domestic industries including data centres.

Investment, Trade and Industry Minister Tengku Datuk Seri Tengku Zafrul Abdul Aziz said this strategy ensures controlled, competitive, and secure access to global chips and AI platforms.

“The government’s main goal is to ensure that companies and industries, including data centres operating in Malaysia, have controlled, competitive, and secure access to global chips and AI platforms, while maintaining the country’s data security and sovereignty,” he said.

This includes access to AI chips from major economic blocs such as the United States, including NVIDIA Corporation, and from China, such as Huawei Ascend.

Several key strategies are being implemented in line with the National Semiconductor Strategic Plan and the country’s digital transformation agenda.

MITI has stipulated that all export, transit, and transshipment activities involving AI chips require a permit under the Strategic Trade Act 2010.

This step supports Malaysia’s commitment to ensure continuity in the global semiconductor supply chain while safely supporting domestic AI industry growth.

The government is strengthening collaboration with global technology companies and key trading partners to expand market access and enhance technology transfer.

Malaysia is negotiating a Reciprocal Trade Agreement with the US to ensure trade between both countries continues to flourish.

Both nations signed a memorandum of cooperation on resilient semiconductor supply chains in 2022, which remains effective until 2026.

The implementation of the AI sovereignty policy underscores the development of local capabilities alongside strict technical controls.

This approach allows Malaysia to leverage global AI technology while safeguarding national security, governance and strategic interests.

Through this integrated strategy, Malaysia can ensure companies have open and comprehensive access to international AI chips.

It also strengthens domestic technological resilience, enhances innovation capacity and accelerates digital transformation. – Bernama

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