Malaysia acts to avoid US sanctions amid escalating global AI chip war
The new requirement falls under Section 12 of the Strategic Trade Act 2010, which serves as a catch-all control provision for items not explicitly listed in the Strategic Items List.
Companies and individuals must notify authorities at least 30 days before moving these AI chips if they know or suspect potential misuse or restricted activities.
"This initiative serves to close regulatory gaps while Malaysia undertakes further review on the inclusion of high-performance AI chips of US origin into the SIL (Strategic Items List) of the STA 2010 (Strategic Trade Act)," the ministry said in a statement.
Malaysia has warned it will take strict legal action against any violations of the Strategic Trade Act 2010 or related laws.
The ministry emphasised that while Malaysia supports investments and trade aligned with international best practices, all entities must comply with relevant international obligations to avoid secondary sanctions.
Miti also reaffirmed Malaysia's commitment to maintaining a safe, secure, transparent, and rules-based trading environment with all trade partners.
Last week, Bloomberg reported that the US plans to restrict shipments of advanced AI chips to Malaysia to prevent them from being diverted to China, as part of a broader crackdown on semiconductor smuggling.
Despite Malaysia's previous pledges to tighten import scrutiny, chip exports to the country have surged, drawing US attention and prompting proposed curbs that may include temporary exemptions for American and allied firms operating there.
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