KUALA LUMPUR: The Ministry of Investment, Trade and Industry (Miti) has not found any evidence of incidents relating to the smuggling of high-performance artificial intelligence (AI) chips, said its minister Tengku Datuk Seri Zafrul Abdul Aziz.
He stated that the ministry has been working closely with authorities, including the police, the Customs Department, and the Malaysian Communications and Multimedia Commission (MCMC), as well as industry players, to investigate the matter.
“So far, we have not found any (evidence). We have spoken to the United States and big players to cooperate and work with us. If there is any evidence, we will take action. The investigation continues,” he told a press conference on Miti’s report card for the second quarter of 2025.
According to Tengku Zafrul, the demand for AI chips in Malaysia has been high due to its growing data centre industry.
“I think that has raised some red flags because Malaysia has started to be a dominant player in the industry,” he said, Bernama reported.
On Monday, Miti issued a new directive imposing immediate controls on the export, transshipment and transit of high-performance AI chips of US origin within Malaysia under Section 12 of the Strategic Trade Act 2010.
Tengku Zafrul emphasised that the government is dedicated to fostering a transparent and lawful trading environment for all partners and investors.
“We aim to ensure responsible trade practices, and we are currently reviewing the inclusion of AI chips in the Strategic Item List (SIL).
“We also want to make sure that we comply with international standards and obligations, he said, adding that it is to avoid secondary sanctions for the sake of the nation’s industry and economy,” he said.
