In a statement, the ministry said the private initiative is not part of any government-to-government agreement or nationally mandated technology programme.
The ministry said that while the government is committed to building an AI-powered infrastructure to enhance public sector capacity and services, any such initiative must undergo the appropriate legal, operational and reputational due diligence.
“Malaysia also reaffirms its sovereign right to formulate its policies in line with national interests while facilitating transformative technologies that continue to support global research and innovation in developing advanced technologies for the good of humanity.”
The ministry said Malaysia remains fully committed to all applicable export control laws, national security directives and international regulatory frameworks, “especially those that uphold the highest standards of transparency, accountability, neutrality and security, premised upon the principles of multilateralism, with the World Trade Organization (WTO) at its core”.
The statement follows a Bloomberg report quoting deputy communications minister Teo Nie Ching as saying that Malaysia would be the first country to deploy Huawei’s Ascend GPU-powered AI servers on a national scale.
On Monday, Teo announced that Malaysia planned to deploy 3,000 units of Huawei’s flagship AI servers by 2026. Her office later retracted the statement without explanation.
It remains unclear whether the project will proceed as initially outlined. Huawei has not issued any comment.
The project was first reported by local outlet Malaysia-China Insight and has since drawn attention from the White House, which is working to curb China’s expansion in the global AI market.
David Sacks, a former AI and crypto adviser in the Donald Trump administration, wrote on X that the Trump team’s reversal of Joe Biden-era semiconductor export controls affecting Malaysia came “just in time”.
The reversal followed guidance published — and later revised — by the US commerce department, warning global firms that using Huawei’s Ascend chips could violate export controls.
The department initially said the chips’ use “anywhere in the world” might breach regulations but later modified its statement and removed the phrase amid rising tensions with Beijing.
Observers say the US is aiming to expand its AI hardware presence in regions like Southeast Asia and the Middle East to reduce global reliance on Chinese alternatives.