The Ministry of Investment, Trade and Industry (MITI) has revealed that it is in the process of verifying recent reports alleging that a Chinese company used servers in Malaysia equipped with NVIDIA chips to train artificial intelligence (AI) models. The development follows a Wall Street Journal article which reported that Chinese engineers transported 80 terabytes of data via suitcases to Malaysia in March to train AI systems in local data centres.
The report, which was published earlier this week, alleged that this strategy is part of a broader effort by Chinese firms to circumvent growing US export restrictions on advanced semiconductors and AI hardware. As access to high-performance chips becomes increasingly limited for China, countries like Malaysia may become alternative hubs for computing power.
In response, MITI clarified that servers using NVIDIA or other AI-related chips are not considered controlled goods under Malaysian regulations. However, the ministry assured that it would cooperate with any country seeking assistance to monitor the trade of sensitive goods under their respective export controls.
MITI emphasised that all businesses in Malaysia, including data centres, are permitted to make commercial decisions freely as long as they operate within the bounds of national laws. At the same time, it reaffirmed the country’s strong stance against any attempts to bypass export controls or engage in illicit trade.
The ministry further noted that companies have been advised to respect unilateral export restrictions imposed by other nations in order to avoid exposure to secondary sanctions. MITI said it would act firmly against any entity that violates Malaysian or international trade regulations, particularly in the semiconductor and AI sectors.
(Source: The Edge Malaysia)
