Malaysia ‘stands firm’ on US chip sanctions after alleged workaround by Chinese company
Chinese engineers rented Malaysian data centres packed with high-end Nvidia chips to train their AI model, a newspaper report has alleged

Malaysia’s trade ministry said it was in the process of verifying the claims. Though the activity might not necessarily breach local laws, the ministry said it “stands firm” against attempts to work around export controls or engage in illicit trade activities.
“While Malaysia maintains a neutral position on unilateral sanctions, companies operating here have been advised to adhere to other countries’ unilateral export controls … to avoid any secondary sanctions on their businesses,” it said in a statement on Wednesday.
A team of four Chinese engineers allegedly flew into Malaysia from Beijing in March, each carrying a suitcase with 15 hard drives containing 80 terabytes’ worth of spreadsheets, images and video clips to train an AI model, according to the New York-based newspaper.