Malaysia denies chip smuggling claims, reaffirms export control commitments
Malaysia has firmly rejected allegations it is being used to smuggle restricted Nvidia AI chips to China, while emphasising its commitment to international export control regulations, the official Bernama news agency reported, 7 February.
‘We firmly adhere to export control regulations under the Strategic Trade Act, which governs the export, transit, and transshipment of strategic goods, including semiconductors,’ said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
‘Malaysia’s policy aligns with control measures implemented by the United States (US), the European Union (EU), and the United Kingdom,’ he added, stressing that his country does not want its position as a semiconductor and regional logistics hub exploited for illegal activities, according to Bernama.
The comments come as the US considers new export restrictions on advanced AI chips that would categorise countries into tiers with varying levels of access. Under the proposed regulations, Malaysia reportedly would fall into the second tier, limiting its access to cutting-edge AI chips used in data centres and AI model training. US concerns follow a recent AI breakthrough by China’s DeepSeek.
To strengthen oversight, Zafrul said his government is enhancing international cooperation to monitor sensitive technologies like Nvidia’s H100 and A100 chips used in high-performance AI applications.
Earlier this week, neighbouring Singapore also firmly rejected suggestions it served as a conduit for DeepSeek to obtain restricted US semiconductors, following concerns raised by two US lawmakers about potential export control evasion.
