Malaysia

MITI finds no evidence of AI chip smuggling, says Tengku Zafrul

Minister confirms ongoing probe with enforcement agencies as Malaysia tightens export rules on high-performance semiconductors

Updated 1 year ago · Published on 15 Jul 2025 3:39PM

MITI finds no evidence of AI chip smuggling, says Tengku Zafrul
Minister thinks some red flags were raised because Malaysia has started to be a dominant player in the industry - July 15, 2025

THE Ministry of Investment, Trade and Industry (MITI) has not uncovered any evidence of the smuggling of high-performance artificial intelligence (AI) chips, according to its minister, Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

Speaking at a press conference for MITI’s second quarter 2025 report card, Tengku Zafrul said the ministry is working in close collaboration with the Royal Malaysia Police, Royal Malaysian Customs Department, the Malaysian Communications and Multimedia Commission (MCMC), and industry players to investigate the matter.

“So far, we have not found any (evidence). We have spoken to the United States (US) and big players to cooperate and work with us. If there is any evidence, we will definitely act. The investigation continues,” he said.

He acknowledged the heightened scrutiny, noting the increased demand for AI chips in Malaysia due to the country’s fast-expanding data centre sector.

“I think that has raised some red flags because Malaysia has started to be a dominant player in the industry,” he said.

To reinforce regulatory oversight, MITI on Monday issued a directive under Section 12 of the Strategic Trade Act 2010, enforcing immediate controls on the export, transhipment, and transit of US-origin high-performance AI chips within Malaysia.

Tengku Zafrul stressed the government’s commitment to maintaining a transparent and rules-based trade environment that meets international standards.

“We want to ensure there is a responsible trade, and we are currently reviewing the listing of AI chips under the Strategic Item List (SIL).

“We also want to make sure that we are in compliance with international standards and obligations,” he said, adding that such efforts are crucial to avoiding secondary sanctions and safeguarding the country’s economic interests. - July 15, 2025

Spotlight

Malaysia

Sarawak schools told to halt outdoor activities as haze pushes air quality into unhealthy range

World

Indonesia haze forces schools to close as wildfires intensify amid severe dry season

Malaysia

PN walkout over Tabung Haji debate a political misstep, says analyst

By Alfian Z.M. Tahir

Malaysia

51 witnesses to testify at inquest into death of 10-year-old boy found unconscious in school toilet

Malaysia

Female student arrested for allegedly hurting classmate with kerambit at school

World

Colombia quake death toll hits 111 as rescue teams race to find survivors

World

Trump secretly switched to third aircraft in Türkiye over Iran assassination threat

Malaysia

Anwar questions PN’s priorities after Tabung Haji RCI walkout

Malaysia

MACC, police probing TH after RCI findings as govt warns no one will be spared

By Alfian Z.M. Tahir

You may be interested

Malaysia

DKU moves to join legal challenge over alleged bid to remove Tuanku Muhriz

By Alfian Z.M. Tahir

Malaysia

Speaker informs EC of Subang parliamentary seat vacancy

Malaysia

Kedah may delay Penang lease claim documents till change of federal government

Malaysia

PN walkout over Tabung Haji debate a political misstep, says analyst

By Alfian Z.M. Tahir

Malaysia

Two 11-year-olds feared drowned after disappearing near Pasir Gudang dam

Malaysia

PAS reaches out to UMNO as PN eyes Melaka talks

Malaysia

Arul Kumar takes over as DAP Negeri Sembilan chairman after Loke steps down

Malaysia

A birthday of service: Anwar turns 79 as Malaysia’s reform agenda remains in focus