MITI Finds No Evidence Of AI Chips Smuggling -- Tengku Zafrul

KUALA LUMPUR, July 15 (Bernama) -- The Ministry of Investment, Trade and Industry (MITI) has not found any evidence of incidents relating to the smuggling of high-performance artificial intelligence (AI) chips, said its minister, Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

He said the ministry has been working closely with authorities such as the police, the Royal Malaysia Customs Department, the 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 (US) 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 MITI'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, MITI issued a new 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.

Tengku Zafrul emphasised that the government is committed to a transparent and lawful trading environment for all partners and investors.

"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 it is to avoid secondary sanctions for the sake of the nation’s industry and economy.

-- BERNAMA