MITI finds no proof of AI chips smuggling in Malaysia
He stated that MITI has been coordinating with enforcement agencies, including the police, Customs Department, and the Malaysian Communications and Multimedia Commission (MCMC), alongside industry stakeholders to verify the claims.
'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 take action. The investigation continues,' he said during a press conference on MITI's second-quarter 2025 performance report.
Tengku Zafrul noted that Malaysia's expanding data centre industry has driven significant demand for AI chips, raising concerns among international observers.
'I think that has raised some red flags because Malaysia has started to be a dominant player in the industry,' he added.
Earlier this week, MITI introduced immediate export, transhipment, and transit controls for US-origin high-performance AI chips under the Strategic Trade Act 2010.
The minister reiterated the government's commitment to maintaining a transparent and lawful trade environment.
'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, stressing the need to prevent secondary sanctions affecting Malaysia's economy. - Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
5 hours ago
- The Star
Trump, Xi tipped to meet ahead of or during APEC summit in South Korea, SCMP reports
US President Donald Trump might visit China before going to the APEC summit between October 30 and November 1, or he could meet his Chinese counterpart on the sidelines of the APEC event in South Korea, the South China Morning Post reported on Sunday citing multiple sources. According to SCMP, Trump might visit China before going to the Apec summit between October 30 and November 1, or he could meet his Chinese counterpart on the sidelines of the Apec event. According to South Korean media reports, Xi plans to attend the event in Gyeongju, but Trump's participation is yet to be confirmed. Earlier this month Chinese Foreign Minister Wang Yi and US Secretary of State Marco Rubio had their first face-to-face meeting – a potentially important step towards the two presidents meeting. Meanwhile, in a phone call last month, Xi invited Trump and his wife to visit China, an invitation the US president reciprocated. Rubio told reporters after meeting Wang that there was a 'strong desire on both sides' for a meeting between the two presidents. Analysts said a meeting in China before the Apec summit or on the sidelines was the most likely scenario, adding that Trump may visit Shanghai or another location rather than Beijing, to distinguish it from his 2017 visit to the Chinese capital. Diao Daming, an international relations professor at Renmin University in Beijing, said: 'Under favourable conditions and an appropriate atmosphere, any form of interaction between the two leaders will aid in the stabilisation and development of US-China relations.' A meeting between Trump and Xi would be beneficial from China's point of view, according to Bonnie Glaser, managing director of the German Marshall Fund of the United States, who cited her discussions with Chinese counterparts. 'They maintain that a leaders' meeting could create greater stability in the relationship,' Glaser said. 'It would also present an opportunity for Xi to press Trump to ease some restrictions on technology and reaffirm that the United States doesn't support Taiwan independence – and perhaps say that the US supports peaceful reunification.' Beijing views Taiwan as part of its territory that must be reunited with mainland China, by force if necessary. Most countries, including the US, do not recognise it as an independent state, but Washington opposes any attempt to take the island by force and is legally bound to provide arms to help it defend itself. Sun Chenghao, a fellow at Tsinghua University's Centre for International Security and Strategy, said a direct leaders' meeting would be beneficial for breaking the impasse on issues such as fentanyl and tariffs. 'If certain issues can be clarified directly through a summit between the two leaders, I believe we could see relatively swift breakthroughs in specific areas of US-China relations, where leaders could effectively mobilise efforts at the working level.' Chen Qi, a professor of international relations at Tsinghua, said: 'Both sides are indeed working to create a conducive atmosphere for a meeting. Despite some fluctuations since June, there was a mutual effort to establish an improved atmosphere for a potential meeting' As long as the pair can achieve a certain degree of 'mutual cooperation', particularly on issues that Trump cares about such as trade and export controls, it would foster positive interactions, Chen added. Diplomatic observers agreed Trump wanted the meeting more than Xi, handing an advantage to Beijing. 'It's up to China. Trump would be on a plane to Beijing tomorrow if he could,' said Jeremy Chan, a senior analyst with Eurasia Group. 'China is very protocol driven and wants all agreements lined up well in advance while Trump would be happy to hash it all out over a Big Mac.' However, analysts warned that several factors could jeopardise a meeting, including Taiwan or the actions of the more hawkish elements in Washington. 'The summit will be well telegraphed in advance,' said Chan. 'But all it would take would be one slip up along the way to derail the whole thing.' Diao said that if the US insisted on containing China or 'interfering' over Taiwan, it would create obstacles to the leaders' meeting. Reports that Taiwanese leader William Lai Ching-te intends to transit in the US ahead of a trip to the island's Latin American allies have already prompted condemnation from Beijing. Xin Qiang, deputy director of the Centre for American Studies at Fudan University in Shanghai, said the prospects for a meeting were uncertain and Beijing would closely monitor how the US handles Lai's transit. 'If significant provocative incidents occur during Lai's transit, or if Washington extends an overly high-profile reception, it could erode the goodwill and trust that have been painstakingly built up to this point.' But Chen predicted that Trump would not play the Taiwan card during the summit preparations. Analysts said the summit was likely to have a visible lead-up if it was on track, citing the meeting between Rubio and Wang as a possible first step and Trump's decision to allow Nvidia to sell AI chips to China. They said there may be other signs of progress – such as meetings on fentanyl, US export controls and rare earths – as well as a possible further meeting between Rubio and Wang. Chan of Eurasia Group said Beijing was likely to keep the sanctions it imposed on Rubio as a senator over his comments on human rights, Hong Kong, Xinjiang and Taiwan, to keep some leverage and avoid the impression it was bowing to Washington. But if he were to visit China, a 'suspension' or some other face-saving arrangement would probably be worked out. Details for the story are from reports by SCMP and Reuters
The Star
6 hours ago
- The Star
Ringgit closes slightly lower against greenback
SPI Asset Management's Innes said the ringgit is under pressure mainly because of concerns the US Federal Reserve might keep interest rates higher for longer. KUALA LUMPUR: The ringgit slipped 0.01% against the US dollar at the close, as the local note continued trading on the defensive yesterday, which offered some technical comfort for the ringgit. At 6pm, the local note was traded at 4.2400/2490 from 4.2395/2440 at Wednesday's close. SPI Asset Management managing partner Stephen Innes said the ringgit is under pressure mainly because of concerns that the US Federal Reserve (Fed) might keep interest rates higher for longer, as markets reassess the inflation outlook. He added that the US dollar has strengthened recently as investors are becoming less certain that the Fed will cut rates in September. Innes also said that the dollar's recent bid reflected a subtle but growing shift in sentiment, which markets are slowly walking back their conviction that the Fed will cut the interest rate in September. 'Sticky core inflation, fuelled in part by service-sector dynamics and the slow-burn impact of tariffs, is keeping the Fed in a wait-and-see mode. 'The ringgit remains vulnerable to a temporary widening in the US-Malaysia exchange rate spread. 'This does not necessarily break the broader 4.20-4.30 range, and we are still inside expected bands for now, but it does create a bias for further weakness,' he added. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that the ringgit weakened against the US dollar in the early morning session to 4.2575 in response to the US Consumer Price Index (CPI), which continued to increase in June to 2.7% from 2.4% previously. 'The latest CPI print appears to give the impression that the Fed may not be inclined to cut the Fed Fund Rate in the upcoming meeting in July. 'In a nutshell, the ringgit maintained its narrow-range trade in light of the ongoing uncertainties over the US tariffs,' Mohd Afzanizam said.
The Star
7 hours ago
- The Star
Ringgit to be traded at RM4.24 and RM4.26 range this week; market participants will be closely watching US Fed moves
KUALA LUMPUR (Bernama): The ringgit is expected to hover around RM4.24 to RM4.26 this week amid mixed signals in the market. This follows the anticipation of a potential meeting between United States (US) President Donald Trump and Chinese leader Xi Jinping, as well as the upcoming Federal Open Market Committee (FOMC) meeting by the end of the month. SPI Asset Management managing partner Stephen Innes said the market is expected to adopt a tone of cautious optimism next week, as the potential Trump-Xi meeting could reset the US-China dialogue, lifting broader Asian sentiment. "For Malaysia, any thaw in trade tensions could brighten the macro outlook and, by extension, offer a floor to the ringgit in the near term. That diplomatic backdrop, however tentative, has helped curb more aggressive ringgit selling into the weekend,' he told Bernama. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that the next FOMC meeting will be held on July 29 and 30, and therefore, market participants will be closely watching to see whether the US Federal Reserve (Fed) will cut the Fed Fund Rate. "Next week, there are not many data points to look at other than some comments from the Fed officials; thus, the market will be adopting a wait-and-see stance,' he added. Meanwhile, Kenanga Investment Bank Bhd said the ringgit remains supported by improving domestic fundamentals, rising foreign direct investment inflows, and infrastructure catalysts such as the resumption of the Mass Rapid Transit 3 project. "We expect US dollar-ringgit to range between RM4.23 to RM4.25 per US dollar in the near term,' it said in a note today. On a Friday-to-Friday basis, the ringgit ended the week better against the greenback, closing at 4.2410/2455 as compared with 4.2475/2525 previously. The local note also traded higher against a basket of major currencies. The ringgit appreciated vis-à-vis the Japanese yen to 2.8517/8549 from 2.8893/8929, and strengthened against the British pound to 5.6999/7060 from 5.7524/7592 last Friday. It also rose versus the euro to 4.9336/9388 from 4.9679/9737 at the end of last week. Against Asean currencies, the ringgit traded mostly higher. The local note firmed against the Singapore dollar to 3.3027/3065 from 3.3186/3228, strengthened versus the Indonesian rupiah to 260.2/260.6 from 261.8/262.3 previously, and improved against the Philippine peso to 7.41/7.43 from 7.52/7.53 last Friday. However, it weakened versus the Thai baht to 13.3027/3065 from 13.0668/0886. - Bernama
