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
