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Home News

MITI: No Evidence Of Illegal AI Chips Trade Found

The ministry is working closely with customs, police, MCMC, and industry players as investigations continue.

by Heirul Kamel
July 15, 2025
miti verifying claims of chinese ai model training in malaysia

Image: Bernama

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No evidence of any illegal trade involving high-performance artificial intelligence (AI) chips have been discovered, according to Investment, Trade and Industry minister Tengku Zafrul Abdul Aziz. He said investigations are ongoing, with close collaboration between MITI and enforcement bodies including the Royal Malaysian Customs Department, police, the Malaysian Communications and Multimedia Commission (MCMC), and industry playuers.

“We have not found any case,” said Zafrul at a press briefing on Tuesday, adding that Malaysian authorities have been engaging with the United States and semiconductor firms to ensure cooperation. “If there is any evidence, we will definitely take action.”

Tengku-Zafrul-ai-ev-trade-investment
Image: Tengku Zafrul via X

The statement comes as Malaysia faces increasing scrutiny over chip exports amid global efforts led by Washington to curb the flow of advanced semiconductors to China. In response, the country has begun tightening its regulatory oversight. As of Monday, any exports, transhipments or transits of US-origin high-performance AI chips will require a trade permit, with immediate effect.

Earlier this month, the US announced a new 25% import tax on Malaysian goods, which will take effect on 1 August. Discussions with the US are currently ongoing, with hopes to reduce the rate. Additionally, there are concerns that semiconductors might face extra, industry-specific taxes on top of the general tariff.

Trump China Tariffs tariff
Image: Samuel Wölfl, via Pexels

“What we don’t want is the circumvention of export controls and misuse of jurisdiction for illicit trade,” said Zafrul. He reiterated Malaysia’s commitment to a rules-based trading system and said the country remains in full compliance with international standards and obligations.

(Source: Bernama)

Filed Under ai chipsmiti
Updated 7:23 pm, Tue, 15 July 25
https://lowy.at/qbgoc
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