Malaysia navigates geopolitical pressure to maintain technology neutrality amid US-China AI chip export controls.

Despite Malaysia's insistence that its long-standing non-alignment policy extends to cyberspace, analysts caution that dependence on American and Chinese technology could make maintaining such neutrality difficult amid ongoing superpower rivalry.

Defence Minister Mohamed Khaled Nordin said Monday that Malaysia would "always remain neutral" in cyberspace, arguing that cyber threats emanate from non-state actors and should not be viewed solely through geopolitical rivalry. "As a principle of the country, we are non-aligned. We are neutral, and it goes into every domain," Nordin told reporters at the Cyber Digital Services, Defence & Security Asia 2026 event. "Cyberattacks can come from anybody from anywhere, and it may not come from a state actor."

Analysts warn, however, that reliance on foreign technology could expose critical systems to disruptions if major-power confrontation triggers sanctions, export controls and other restrictions.