FILE PHOTO: A smartphone with a displayed Nvidia logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/File Photo
KUALA LUMPUR: The Ministry of Investment, Trade and Industry (MITI) is verifying with relevant agencies to see whether any local laws have been breached following reports of a Chinese company using Nvidia-powered artificial intelligence (AI) chips for Large Language Model (LLM) training in Malaysia.
In a statement today, MITI said that servers using Nvidia chips and AI chips are not classified as controlled goods under the Malaysian Strategic Trade Act 2010 (STA 2010).
"However, Malaysia will cooperate with any government that requires assistance in monitoring trade in sensitive goods under the export control of their respective countries,’ it said.
Guided by the principles of transparency, good governance and the rule of law, businesses, including data centres operating in Malaysia, are free to make their own commercial decisions, provided that they operate within the scope of Malaysian laws and regulations, said MITI.
"The development and regulation of the Malaysian data centre industry and ecosystem is also actively and jointly managed by MITI and the Ministry of Digital through the Data Centre Task Force,” it said.
The ministry said that Malaysia stands firm against any individual or company that attempts to circumvent export controls or engage in illicit trade activities.
"MITI remains committed to facilitating legitimate trade and fostering a secure and responsible investment and trade environment, ensuring that all technology-related investments and trade align with international best practices as well as with multilaterally agreed commitments,” it said.
It also emphasised that Malaysia remains committed to upholding international trade regulations and ensuring full compliance with global export control measures.
"MITI will always act firmly against any company operating in Malaysia that violates Malaysian and international trading regulations, including those involved in the semiconductor and AI industries,” it said.
MITI added that while Malaysia maintains a neutral position on unilateral sanctions, companies operating here have been advised to adhere to other countries' unilateral export controls which apply to their international business activities to avoid any secondary sanctions on their businesses. - Bernama
