THE Ministry of Investment, Trade and Industry (MITI) has reiterated its zero-tolerance stance against individuals or companies involved in unlawful trade or operations, following reports that Nvidia AI chips are allegedly being used by Chinese firms to train large language models (LLMs) in the country.
MITI, in a statement on Wednesday, said it is currently verifying the claims with the relevant authorities to determine if there has been any breach of local laws or regulations.
“The servers equipped with Nvidia AI chips are not classified as controlled items under Malaysia’s Strategic Trade Act 2010 (STA 2010),” the ministry clarified. “Nonetheless, Malaysia is prepared to cooperate with any government that requires assistance in monitoring the trade of sensitive items subject to their respective export controls.”
MITI stressed that all businesses, including data centre operators in Malaysia, are free to make commercial decisions provided they comply with the nation’s legal and regulatory frameworks. The regulation and development of Malaysia’s data centre ecosystem is jointly managed by MITI and the Ministry of Digital through the Data Centre Task Force.
“Malaysia maintains a firm position and adopts a zero-tolerance approach towards any attempt by individuals or companies to circumvent export controls or engage in illicit trade activities,” the ministry stated.
MITI remains committed to facilitating legitimate trade to foster a safe and responsible investment environment. This includes ensuring that all technology-related trade and investments align with international best practices and multilateral commitments.
“Malaysia is equally committed to upholding international trade regulations and ensuring full compliance with global export control measures,” it said, adding that any company operating in Malaysia — including those in the semiconductor and AI industries — will face firm action if found to be in violation of domestic or international trade rules.
While Malaysia maintains a neutral position on unilateral sanctions, MITI has advised companies based in the country to comply with relevant unilateral export controls that may apply to their international business dealings to avoid potential restrictions. - June 18, 2025
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