The Ministry of Investment, Trade and Industry (MITI) has explained that it has no involvement with any AI projects utilising Huawei chips. The initiative is not a government project, but rather a private sector venture.
According to MITI, the private sector’s use of AI technologies depend on the strategic choices of the individual companies. The ministry added that these decisions are not subject to government control.
This clarification is intended to prevent misinformation and address sensitivities concerning current geopolitical issues. It also serves as a response to a query concerning the internal review process and code of conduct regarding the use of Huawei chips in AI projects, as well as Malaysia’s existing policy on the adoption of AI technology.
MITI stated that it implemented the “Directive of the Strategic Trade Controller No 1/2025 – Declaration of Unlisted Items Under Section 12 of the Strategic Trade Act (STA) 2010”, which came into effect on 14 July after a risk-based assessment of the current global trade landscape.
According to this directive, companies that wish to export, transit, or transfer advanced AI chips must apply for a permit. The ministry enacted this directive to address the increasing international concerns that Malaysia might become a transshipment hub for illegally transferring advanced AI chips.
MITI asserted that it will continue assessing the list of strategic items according to the chips’ capabilities and potential risks. It also affirmed Malaysia’s commitment to attracting investments to support AI development while prioritising domestic capabilities and data security.
(Source: Bernama)
