Kuala lumpur: 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 mentioned that the ministry has been collaborating closely with authorities such as the police, the Royal Malaysia Customs Department, the Malaysian Communications and Multimedia Commission (MCMC), and industry players to investigate the issue.

According to BERNAMA News Agency, Tengku Zafrul stated that no evidence has been found so far, despite consultations with the United States and major industry players. “If there is any evidence, we will definitely take action. The investigation continues,” he remarked during a press conference on MITI’s report card for the second quarter of 2025.

Tengku Zafrul highlighted the high demand for AI chips in Malaysia, attributing it to the country’s burgeoning data centre industry. He noted that Malaysia’s increasing prominence in this sector has raised some concerns internationally.

On Monday, MITI introduced a new directive imposing immediate controls on the export, transhipment, and transit of high-performance AI chips of US origin within Malaysia, adhering to Section 12 of the Strategic Trade Act 2010. This measure aims to ensure responsible trade practices and compliance with international standards.

Tengku Zafrul reiterated the government’s commitment to maintaining a transparent and lawful trading environment for all partners and investors. He indicated that the government is reviewing the listing of AI chips under the Strategic Item List (SIL) to prevent potential secondary sanctions, safeguarding the nation’s industry and economy.