The Ministry of Investment, Trade and Industry (MITI) has reaffirmed its commitment to uphold strict enforcement against individuals or companies involved in illegal operations or illicit trading activities within Malaysia, following recent media reports concerning the use of Nvidia and artificial intelligence (AI) chips by a Chinese company operating in the country.
In a statement published on 18 June, MITI confirmed that it is currently verifying with relevant government agencies whether any domestic law or regulation has been breached in the case.
The ministry responded to media coverage suggesting that servers equipped with Nvidia chips were being used to train large language models (LLMs) in Malaysia by a foreign company.
“We would like to reiterate that servers using Nvidia chips and AI chips are not classified as controlled goods under the Malaysian Strategic Trade Act 2010 (STA 2010),” the ministry said.
Despite the chips not being subject to Malaysian export controls, the ministry emphasized that Malaysia is ready to cooperate with any government that seeks assistance in monitoring trade involving sensitive goods, particularly those governed by export control regulations of their own jurisdictions.
MITI stated that Malaysia’s business environment is governed by transparency, good governance, and the rule of law. Businesses, including data centres operating in Malaysia, are allowed to make independent commercial decisions, but only within the legal boundaries of Malaysian law.
“The development and regulation of the Malaysian data centre industry and ecosystem is also actively and jointly managed by MITI and the Ministry of Digital through the Data Centre Task Force,” the statement added.
The ministry took a firm stance, stating, Malaysia stands firm against any individual or company that attempts to circumvent export controls or engage in illicit trade activities.
MITI further underscored its commitment to enabling legitimate trade while ensuring a secure and responsible investment and trading environment. It assured that all technology-related investments and trade in the country must align with international best practices and adhere to multilaterally agreed commitments.
MITI will always act firmly against any company operating in Malaysia, including those involved in semiconductor and AI industries, that violates Malaysian and international trading regulations.
While reiterating Malaysia’s neutral stance on unilateral sanctions, MITI reminded companies to remain vigilant in complying with other countries’ export control laws if they engage in international trade.
“While Malaysia maintains a neutral position on unilateral sanctions, companies operating here have been advised to adhere to other countries’ unilateral export controls which apply to their international business activities to avoid any secondary sanctions on their businesses,” the statement concluded.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
