No evidence of AI chip smuggling, says Tengku Zafrul
He said the Investment, Trade and Industry Ministry (Miti) is working closely with the Customs Department, Malaysian Communications and Multimedia Commission, police and industry players to investigate the matter.
"We have not found any evidence. We've also engaged with the United States (US) and major tech companies to ensure full cooperation. If there is any evidence, we will take action. But the investigation is ongoing," he said at a press conference on the ministry's second-quarter 2025 performance report card.
Tengku Zafrul dismissed claims that millions of chips were involved, saying the concern may have been amplified by Malaysia's rising demand for AI chips, driven by rapid growth in data centres.
"One cannot deny that demand for AI chips in Malaysia has surged. I think that has raised some red flags, especially as Malaysia becomes a dominant player," he said.
On Monday, Miti announced that all export, transfer, and transit activities involving high-performance AI chips from the US are now subject to a Strategic Trade Permit, effective immediately.
The move is in line with Section 12 of the Strategic Trade Act 2010, which allows for catch-all controls.
The ministry said Malaysia will not tolerate any abuse of export controls or illicit trade activities.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
9 minutes ago
- The Star
Broadcom launches Jericho chip to advance AI data center networks
FILE PHOTO: The Broadcom company logo is shown outside one of their office complexes in Irvine, California, U.S., March 4, 2021. REUTERS/Mike Blake/File Photo SAN FRANCISCO (Reuters) -Broadcom's silicon division launched its next-generation Jericho networking chip on Monday, which is designed to connect data centers over 60 miles (96.5 km) apart and speed artificial intelligence computation. The company's Jericho4 introduces and improves several features that increase the amount of networking traffic speeding across large networks that operate inside and between data centers. Building and deploying artificial intelligence has become more computationally intensive and requires stringing together thousands of graphics processors (GPUs). Cloud computing companies such as Microsoft and Amazon require faster, more sophisticated networking chips to ensure data moves efficiently. Security when transferring data beyond the physical walls of a data center is crucial for cloud companies because of the potential attacks that could intercept it ahead of reaching its destination. Broadcom's engineers designed the Jericho chips to be deployed at a massive scale, and a single system can encompass roughly 4,500 chips, according toRam Velaga, senior vice president and general manager of Broadcom's Core Switching Group. To help mitigate issues around network congestion, the Jericho4 chips use the same high-bandwidth memory (HBM) designers such as Nvidia and AMD use for their AI processors. It's necessary because of the volume of data that needs to be stuffed into memory at any given moment of operation. "The switch is actually holding that traffic (in memory) till the congestion frees up," Velaga said. "It means you need to have a lot of memory on the chip." The longer the distance the data must travel from the chip to its destination, the more memory designers must include in the chip as well. In addition to performance improvements, the Jericho4 also beefs up security by encrypting data. Broadcom opted to use TSMC's three nanometer process for the Jericho4. (Reporting by Max A. Cherney; editing by Diane Craft)
The Star
35 minutes ago
- The Star
Malaysia could lead Asean in combating deepfake threats
THE Danish government recently proposed a landmark law that grants individuals legal ownership over their face, voice and body. Once enacted, this law will allow Danish citizens to request the removal of AI-generated deepfake content shared without their consent and to seek compensation for any harm caused. Malaysia, along with the wider Asean region, should view this development seriously. This is not merely a copyright issue; it is a matter of protecting personal identity, national security and public trust as the threat posed by deepfake technology is real and growing.
The Star
an hour ago
- The Star
Zafrul: 19% US tariff fair, ties intact
New pact protects national interests, preserves sovereignty KUALA LUMPUR: Malaysia considers the newly imposed 19% tariff on its exports to the United States a fair and balanced outcome that safeguards national interests, says Tengku Datuk Seri Zafrul Abdul Aziz. While Malaysia had hoped for a lower rate, the Investment, Trade and Industry Minister said the result of the negotiations does not compromise the nation's core policies or sovereignty. 'Among Asean countries, Malaysian goods remain competitive in the US market,' he told the Dewan Rakyat yesterday. He emphasised that the United States is Malaysia's top export destination and a source of foreign direct investments, with nearly RM200bil in export value, making trade relations too important to be taken lightly. Tengku Zafrul cited the electrical and electronics sector, where about 100,000 jobs, particularly in Penang and Kedah, could be impacted by any adverse shift in US trade policy. He said both countries have agreed in principle to an Agreement on Reciprocal Trade, covering six key areas: tariffs and quotas, non-tariff barriers, digital trade and technology, rules of origin, economic and national security, and commercial considerations. Malaysia has agreed to reduce or eliminate import duties on 98.4% of all tariff lines for US imports, he said. While excise duties remain untouched, Tengku Zafrul said sales tax exemptions will apply to certain US agricultural products like dairy and seafood. On digital trade, Malaysia agreed not to impose a discriminatory digital service tax on US companies, to drop the 6% Universal Service Fund contribution requirement for American cloud and social media firms, and to lift the directive requiring domain name system traffic routing through local servers. However, Malaysia rejected several US demands that could undermine sovereignty. 'Cloud service providers and social media platforms remain subject to Malaysian laws. We also retain the right to request source code transfers for use in critical infrastructure, government procurement and the financial sector,' said Tengku Zafrul. Malaysia, he added, also agreed to strengthen export controls under Section 12 of the Strategic Trade Act, addressing US concerns over the export and transit of AI chips to third countries. It also committed not to restrict exports of rare earth elements and critical minerals to the United States, though no exclusivity was granted over Malaysia's supply. Tengku Zafrul also dismissed claims that Malaysia Airlines' US$19bil (RM80.51bil) acquisition of Boeing aircraft was made under pressure from the United States, clarifying that it is part of a long-term fleet renewal plan by Malaysia Aviation Group. He said the purchase includes aircraft, engines, training, maintenance and long-term support, which would benefit Malaysia's aerospace and tourism sectors. Tengku Zafrul said that many Malaysian companies supply critical components to both Boeing and Airbus, contributing RM25.1bil annually and supporting 30,000 jobs nationwide. 'At the same time, our tourism sector has shown strong post-pandemic recovery. Boeing forecasts global passenger traffic to grow by 4.7% over the next 20 years. This investment enables Malaysia to tap into the growth potential of both tourism and aerospace industries,' he said. Tengku Zafrul reaffirmed that the government remains firm on key national interests, including SME participation in supply chains, bumiputra vendor empowerment, halal import standards, and protections for critical sectors. He also rejected allegations that Malaysia will automatically recognise halal certificates from US bodies. While both countries have agreed to facilitate the import of meat and poultry products from the United States, such imports must still comply with halal standards set by the Malaysian Islamic Development Department. Other key areas of agreement include streamlined registration for US dairy, meat and poultry exporters, regionalisation for disease control in poultry exports, and alignment of standards for industrial products like medical devices, pharmaceuticals, and automotive goods with Malaysian regulations. Tengku Zafrul said both nations have also committed to strengthening enforcement in areas such as intellectual property rights, labour, environmental protection and sustainable fisheries management, based on Malaysia's obligations under relevant international organisations. 'I want to stress that Malaysia has not relaxed any controls or conditions that would compromise the rights of the people or the sustainability of local industries,' he said. 'There is no blanket exemption granted to import licensing or approved permits for products imported from the United States. 'There is also no full liberalisation of foreign equity ownership conditions in strategic sectors, and bumiputra equity requirements remain in place for all relevant sectors.'
