No evidence of AI chip smuggling found, says Zafrul
The Investment, Trade and Industry Minister said they has been working closely with authorities such as the police, Customs Department, Malaysian Communications and Multimedia Commission (MCMC), as well as industry players to investigate the matter.
"So far, we have not found any (evidence). We have spoken to the United States and big players to cooperate and work with us. If there is any evidence, we will definitely take action. The investigation continues," he told a press conference on the ministry's report card for the second quarter of 2025.
According to Tengku Zafrul, the demand for AI chips in Malaysia has been high due to its growing 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, the ministry issued a directive imposing immediate controls on the export, transhipment and transit of high-performance AI chips of US origin within Malaysia, under Section 12 of the Strategic Trade Act 2010.
"We want to ensure there is a responsible trade, and we are currently reviewing the listing of AI chips under the Strategic Item List.
"We also want to make sure that we are in compliance with international standards and obligations," he said, adding that it is to avoid secondary sanctions for the sake of the nation's industry and economy. – Bernama
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