Huawei AI Chip Project A Private Sector Initiative, Not Govt Backed - MITI
KUALA LUMPUR, July 31 (Bernama) -- The Ministry of Investment, Trade and Industry (MITI) has clarified that it is not involved in any artificial intelligence (AI) project utilising Huawei chips, stating that the initiative is a private-sector undertaking and not a government project.
In a written parliamentary reply published on the Dewan Rakyat portal today, MITI said the clarification is aimed at preventing misinformation and addressing sensitivities surrounding current geopolitical issues.
“The selection and use of AI technologies by the private sector in Malaysia are based on the strategic decisions of individual companies and are not subject to government control,” the ministry stated.
The reply was in response to a query from Wan Ahmad Fayhsal Wan Ahmad Kamal (PN–Machang) regarding the internal review process and code of conduct relating to the use of Huawei chips in AI projects, as well as Malaysia’s current policy on AI technology adoption.
MITI said it had implemented a directive, titled “Directive of the Strategic Trade Controller No. 1/2025 – Declaration of Unlisted Items Under Section 12 of the Strategic Trade Act (STA) 2010”, effective July 14, following a risk-based assessment of the current global trade landscape.
Under this directive, any company intending to export, transit, or transfer advanced AI chips that meet the technical parameters listed in Annex I of the directive is required to inform MITI of the transaction details for permit approval consideration.
“The directive is implemented based on national risk assessments and in line with Malaysia’s legal framework, while also taking into account international best practices to ensure effective and credible export controls,” MITI explained.
The ministry added that this move was a proactive measure to address growing international concerns over the potential misuse of Malaysia as a transhipment hub for unauthorised transfers of advanced AI chips.
MITI emphasised that it will continue to evaluate and review the list of strategic items based on the capabilities of advanced AI chips and their potential security risks at regional and global levels.
“Malaysia remains committed to attracting investments in the data centre and high-performance computing infrastructure industries to support AI development, with a focus on building domestic capabilities and ensuring data security,” it added.
-- BERNAMA