KUALA LUMPUR, Nov 5 — Malaysia practices a neutral and inclusive approach centred on the country's strategic interests to ensure domestic industries, including data centres, can benefit from the latest technological advancements.
Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said this includes access to artificial intelligence (AI) chips from major world economic blocs, such as the United States (US) through Nvidia Corporation, as well as from China, such as Huawei Ascend.
"The government's main goal is to ensure that companies and industries, including data centres operating in Malaysia, have controlled, competitive, and secure access to global chips and AI platforms, while maintaining the country's data security and sovereignty," he said.
Tengku Zafrul was responding via a written reply on the Dewan Rakyat website today to Pulai MP Suhaizan Kaiat's query on the government’s strategy to ensure data centres in Malaysia can access AI chips from both the US and China.
He added that several key strategies are being implemented and will continue to be implemented, in line with the aspirations under the National Semiconductor Strategic Plan (NSS) and the country's digital transformation agenda.
To ensure a safe and transparent trading environment, the Investment, Trade, and Industry Ministry (Miti), via the Strategic Trade Act 2010 (STA 2010), stipulated on July 14, 2025, that all export, transit, and transhipment activities involving AI chips require a permit.
"This step is in line with Malaysia's commitment to ensure continuity in the global semiconductor supply chain while safely supporting the growth of the domestic AI industry," Tengku Zafrul said.
The government is also continuously strengthening collaboration with global technology companies and key trading partners to expand market access and enhance technology transfer.
“For instance, Malaysia is negotiating to develop a Reciprocal Trade Agreement with the US to ensure trade between both countries continues to flourish.
“Malaysia and the US also signed a memorandum of cooperation on resilient semiconductor supply chains in 2022, which remains in effect until 2026. The government will leverage this cooperation to support the local semiconductor ecosystem,” he said.
The minister noted that implementing the AI sovereignty policy underscores the development of local capabilities alongside the integration of stringent technical controls.
This approach allows Malaysia to leverage global AI technology while safeguarding national security, governance and strategic interests.
"Through this integrated strategy, Malaysia can ensure that companies operating in the country, including data centres, have open and comprehensive access to international AI chips, while also strengthening domestic technological resilience, enhancing innovation capacity and accelerating digital transformation," Tengku Zafrul said.
