KUALA LUMPUR (Nov 26): Companies operating in Malaysia face no restrictions in accessing artificial intelligence (AI) chips from either the US or China, as the country maintains a neutral and inclusive stance amid intensifying tech rivalry between the two powers.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said firms — including local companies — are free to choose between US-made chips such as Nvidia’s or Chinese alternatives like Huawei’s Ascend.

“Malaysia is an open economy. We want to strengthen access to these chips so that companies from all countries can operate here,” he told the Dewan Rakyat on Wednesday during the oral question-and-answer session.

Zafrul acknowledged that access to AI chips remains a sensitive geopolitical issue but stressed that Malaysia’s neutral approach aims to ensure domestic industries continue to benefit from the latest global technological advancements.

To enhance trade transparency and security, he said the Investment, Trade and Industry Ministry has mandated that all export, transit and transfer activities involving AI chips require permits under the Strategic Trade Act 2010, effective July 14 this year.

Zafrul said the government is also strengthening collaboration with global technology companies and key trading partners to expand market access and facilitate technology transfer, including ongoing negotiations with the US on a reciprocal trade agreement to keep bilateral trade strong.

“Malaysia and the US 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.

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