MITI's AI Chip Export Rule To Have No Impact On Data Centres -- MIDF
KUALA LUMPUR, July 15 (Bernama) -- MIDF Amanah Investment Bank Bhd believes that data centres will not be affected by the Ministry of Investment, Trade and Industry's (MITI) latest directive on artificial intelligence (AI) chips.
The ministry has issued a directive which requires all exports, transshipments and transits of high-performance AI chips of United States (US) origin in Malaysia to obtain a Strategic Trade Permit (STP).
In a research note today, the investment bank said the import of US-made advanced AI chips for use in domestic servers does not fall under the scope of the new rules unless the data centre operators intend to move the chips out of Malaysia.
'There is zero impact from this directive in our opinion, as far as data centres in Malaysia are concerned. This is not an additional red tape that could delay the process of setting up a data centre in Malaysia,' it said.
MIDF noted that since the beginning of the year, it has consistently reiterated that most new data centres are AI-ready, though some may eventually be used for non-AI purposes.
The investment bank said the directive primarily addresses the movement of AI chips out of Malaysia, which it views as a prudent move by MITI to prevent suspected smuggling of chips into China through intermediaries.
'This shows Malaysia's willingness to take responsibility for the movement of US-origin AI chips out of the country by stepping up its enforcement,' it added.
MIDF said negotiations between Malaysia and the US will likely focus on regulatory enforcement, end-user monitoring, and the seriousness in addressing violations of the control measures.
'MITI's latest directive covers all these. It is hoped that this will be able to placate the US when negotiating the restrictions of AI chip exports under Trump's refashioned AI Diffusion Rule,' it said.
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Hainan Daily Press Group Deputy Editor-in Chief, Niu Xiaomin (3rd from left) and Bernama Chairman, Datuk Seri Wong Chun Wai launching the Hainan International Media Centre. Looking on is (from left) Nanyang Siang Pau, Editor-in-Chief Evie Loh, Kwong Wah Yit Poh, Executive Editor-in-Chief Tee Hor Yean, Eng Teck and Datuk George Yong Ket How.—SAMUEL ONG/The Star KUALA LUMPUR: Efforts to strengthen China–Asean ties gained momentum following the opening of Hainan International Media Centre (HIMC)'s regional hub for Asean here. The centre serves as a bridge to engage with the Southeast Asia region to develop an international land-sea trade corridor. It also plays a critical role in sharing Hainan's development narrative, including tourism, commercial expansion and policy reforms. Hainan Daily Press Group deputy editor-in-chief Niu Xiaomin said Malaysia was chosen because it is home to a sizeable population of Chinese descendants, particularly the Hainanese community, which has preserved deep-rooted cultural ties and continues to uphold strong traditions. He hoped the stories of Malaysian Chinese and Chinese citizens could serve as a cultural bridge, strengthening people-to-people ties between the two nations while promoting mutual understanding and highlighting shared values across the region. He also said that Hainan would officially become a free trade port on Dec 18, allowing for some 74% of goods entering the island to enjoy zero-tariff benefits. "This marks a new starting point for Hainan's journey towards a higher level of openness to the outside world," he said at the launch of the HIMC–Asean Liaison Centre here on Friday (Aug 1). The event also saw the establishment of the New International Land-Sea Trade Corridor Asean Economic and Trade Station, and the Haifeng International Film and Television Base Asean Centre. Several agreements on media collaboration were also signed with Bernama, Nanyang Siang Pau and Kwong Wah Yit Poh to jointly produce programmes and conduct activities about Malaysia and Hainan. Partnerships were also established between HIMC and the Federation of Hainan Association Malaysia, Mila University and Lingshui Yingli Wanxiang Digital Media Industry. The HIMC–Asean Liaison Centre also serves as the Malaysia office for Guangxi International Communication Centre and the International Communication Centre of Guizhou Radio and TV Station. Also present were Bernama chairman Datuk Seri Wong Chun Wai, Kwong Wah Yit Poh executive editor-in-chief Tee Hor Yean, Nanyang Siang Pau editor-in-chief Evie Loh, the Federation of Hainan Association Malaysia president Datuk George Yong Ket How and HIMC senior advisor for Hainan-Asean international communication Dr Pua Eng Teck. Later in the day, Niu led a delegation to visit Star Media Group. They were briefed on the media company's history, operations and commitment to journalistic integrity while engaging in a fruitful meeting with its group chief executive officer Chan Seng Fatt to explore opportunities for collaboration.
