Malaysia has clarified that it is not involved in a local artificial intelligence (AI) initiative linked to China’s Huawei Technologies, as the United States ramps up efforts to curb Beijing’s influence in advanced technologies.

In a statement, the Ministry of Investment, Trade and Industry (MITI) stated that the government neither developed, coordinated, nor endorsed the AI project initiated by Skyvast Corporation, which reportedly utilizes Huawei-made chips. The ministry further emphasized that the initiative is not part of any government-to-government (G2G) agreement or nationally sanctioned technology program.

The clarification comes after international reports highlighted Huawei’s involvement in Skyvast’s AI systems, raising questions over Malaysia’s position in the ongoing tech rivalry between Washington and Beijing.

Analysts see Malaysia’s response as a strategic move to navigate escalating geopolitical pressure. The United States has intensified scrutiny over the global use of Chinese technology, particularly in areas deemed sensitive to national security, such as AI and semiconductors.

Like many ASEAN countries, Malaysia is seeking to balance deep economic ties with China while maintaining strong relations with Western partners. In 2024 alone, trade between ASEAN and China reached US$982.3 billion, underscoring China’s dominant economic presence in the region.

While Malaysia remains open to technological cooperation with Chinese firms, the government is cautious not to be seen as aligning too closely with Beijing’s tech ambitions. This balancing act is viewed as crucial to safeguarding Malaysia’s national interests while avoiding potential fallout from either superpower.

The statement reflects a broader regional sentiment — one of hedging and neutrality — as Southeast Asian nations attempt to insulate themselves from the intensifying US-China rivalry in the AI and digital infrastructure race.