KUALA LUMPUR – Authorities have found no evidence of smuggling involving high-performance artificial intelligence (AI) chips in Malaysia, said Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz.
He said the Investment, Trade and Industry Ministry (Miti) has been working with the police, the Customs Department, and the Malaysian Communications and Multimedia Commission (MCMC), as well as engaging with the United States and major global chipmakers, to investigate the matter.
So far, no suspicious activity has been detected, but investigations are ongoing and action will be taken if any evidence emerges, he said at a press conference on his ministry’s second-quarter 2025 report card, Bernama reported.
Zafrul said demand for AI chips has surged in Malaysia due to the rapid expansion of its 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.
On Monday, Miti issued a directive to tighten oversight, imposing immediate controls on the export, transhipment and transit of US-origin high-performance AI chips within Malaysia. The order was made under Section 12 of the Strategic Trade Act 2010.
He added that the government is reviewing the listing of AI chips under the Strategic Item List to ensure compliance with international standards and obligations.
“We are committed to responsible trade and transparency. This is also to avoid the risk of secondary sanctions that could affect our economy and industry,” he said. – July 15, 2025