KUALA LUMPUR, February 19 — The Malaysian government has reiterated its commitment to international export control regulations following allegations that the country is being used as a transit point for smuggling Nvidia AI chipsto China. Minister of Investment, Trade, and Industry Datuk Seri Tengku Zafrul Abdul Aziz assured that Malaysia strictly adheres to the Strategic Trade Act, aligning with export control measures imposed by the United States, European Union, and United Kingdom.
He emphasized that Malaysia will not allow its role as a semiconductor and logistics hub to be exploited for illegal activities. Beyond regulatory compliance, Malaysia is enhancing R&D and technology investment to strengthen its position in the semiconductor and AI industries. Tengku Zafrul highlighted the need for local firms to expand beyond assembly and testing into integrated circuit (IC) design and wafer manufacturing.
To support this shift, the government is offering incentives and R&D grants. Additionally, Malaysia is working to attract high-tech companies to retain skilled professionals and mitigate brain drain to countries like Singapore, the US, and China.
