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The Star
5 days ago
- Business
- The Star
Miti requires permit for US-made AI chip exports
KUALA LUMPUR: The Investment, Trade and Industry Ministry (Miti) has imposed an immediate requirement for a Strategic Trade Permit on all exports, transshipments and transits of high-performance artificial intelligence (AI) chips of US origin, as part of efforts to close regulatory gaps. Miti said the new measure falls under Section 12 of the Strategic Trade Act 2010 (STA 2010), known as the Catch-All Control provision. It mandates individuals or firm to notify the authorities at least 30 days in advance if they intend to export, transship, or transit any item not listed in the Strategic Items List (SIL), where there is knowledge or reasonable suspicion that the item may be misused or involved in 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 of the STA 2010,' Miti said in a statement yesterday. Miti said Malaysia takes a firm stance against any attempt to circumvent export controls or engage in illicit trade. Any individual or company found violating the STA 2010 or related laws will face strict legal action. 'While Malaysia supports investments and trade that align with international best practices and multilaterally agreed commitments, all entities operating in the country are expected to comply with applicable international obligations to avoid secondary sanctions on their businesses,' it said. Miti reaffirmed its commitment to maintaining a safe, secure, transparent and rules-based trading environment, and said it will not tolerate misuse of Malaysia's jurisdiction for illicit trade activities. Commenting on the development, SPI Asset Management managing director Stephen Innes said the new export control does not directly hinder Malaysia's ongoing AI and data centre expansion efforts, which are driven by infrastructure investment, cloud partnerships and local talent. However, it does signal tighter regulatory oversight. 'If you want to play in the AI sandbox, you now need to watch your sourcing, disclosure and compliance trail more carefully,' he told Bernama. Innes said while multinational technology firms are likely to view this as a manageable hurdle, smaller local players or startups could face some challenges without the benefit of robust legal support. On the chip industry itself, he said Malaysia's core strength in testing and packaging means it may be spared the brunt of disruptions. 'This law forces the industry to mature quickly in terms of compliance infrastructure. The upside is that it may accelerate Malaysia's push toward more transparent, globally integrated standards,' he added. Meanwhile, economist Professor Geoffrey Williams said the changes in regulations showed a more cooperative approach from the tariff talks, which is a good sign. Williams said this indicated that both sides are listening to each other and responding quickly. 'This will deliver a much better chance of lowering the 25% reciprocal tariffs and is better than taking a belligerent stance. It is a closer win-win engagement,' he said. Williams said the United States has been concerned that AI chips are being sent to China through third countries in Asean, in breach of the US embargo. 'Therefore, getting better coordinated regulation across Asean is a positive response to address US concerns, and Malaysia is playing a key role in this,' he said, adding that this would have no significant effect on data centre and AI operations in Malaysia, except to restrict illicit activities.
Business Recorder
5 days ago
- Business
- Business Recorder
Malaysia clamps down on export, transit of US-made AI chips
KUALA LUMPUR: Malaysia clamped down Monday on the export, transshipment and transit of all US-made artificial intelligence chips, seeking to stop illegal trade to countries including China. 'Effective immediately, all exports, transships and transits of high-performance AI chips of US origin are subject to a strategic trade permit,' the investment, trade and industry ministry said in a statement. 'This initiative serves to close regulatory gaps while Malaysia undertakes further review on the inclusion of high-performance AI chips of US origin' into its so-called Strategic Items List, the government said. Washington has previously voiced concern about the transshipment of US-made AI chips, particularly the potential of sensitive components being diverted to China. Malaysia is a major hub for the export and transhipment of high-end AI chips due to its position in the global supply chain, its strategic location and advanced logistical capabilities, experts say. The Wall Street Journal reported that Chinese engineers had in March brought hard drives to Malaysia containing data to build AI models in Malaysian data centres using advanced US-made chips. The engineers then planned to bring the AI models back to China, the report said.
Time of India
6 days ago
- Business
- Time of India
Malaysia AI chip export curb: Malaysia blocks export and transit of US-made AI chips, targets illegal shipments to China
Malaysia on Monday imposed immediate restrictions on the export, transshipment and transit of high-performance AI chips made in the United States, aiming to plug regulatory gaps and prevent unauthorised rerouting of sensitive technology to countries including China. Tired of too many ads? go ad free now The country's investment, trade and industry ministry said in a statement that all such movements of US-origin AI chips will now require a strategic trade permit, according to AFP. "This initiative serves to close regulatory gaps while Malaysia undertakes further review on the inclusion of high-performance AI chips of US origin" into its Strategic Items List, the government said. The move follows concerns raised by Washington over the transshipment of advanced AI chips via Malaysia, especially amid reports that these chips may have been diverted to Chinese entities despite ongoing US export curbs. Malaysia serves as a key logistics and export hub for high-end AI chips due to its strategic location and deep integration in global supply chains, experts say. Last month, Malaysia said it was investigating reports that a Chinese company had used Malaysian data centres equipped with US-made Nvidia chips to circumvent US export controls. According to a Wall Street Journal report, Chinese engineers allegedly transported hard drives containing training data to Malaysia in March to develop AI models locally, before planning to bring the finished models back to China. The US has tightened restrictions on advanced chip exports to China as part of broader efforts to limit Beijing's access to cutting-edge technologies seen as vital to AI and defence capabilities. China, in response, has maintained that its firms operate within the bounds of international and domestic laws. "China is willing to work with countries in the region, including Malaysia, to jointly maintain a free and open international trade order," Chinese foreign ministry spokesman Guo Jiakun said at the time. In Monday's statement, the Malaysian government reiterated its position, saying it "stands firm against any attempt to circumvent export controls or engage in illicit trade activities by any individual or company."
The Star
6 days ago
- Business
- The Star
Miti imposes permit requirement on US-origin AI chip exports to close regulatory gaps
KUALA LUMPUR: The Ministry of Investment, Trade and Industry (MITI) has imposed an immediate requirement for a Strategic Trade Permit on all exports, transshipments and transits of high-performance artificial intelligence (AI) chips of United States origin, as part of efforts to close regulatory gaps. MITI said the new measure falls under Section 12 of the Strategic Trade Act 2010 (STA 2010), known as the Catch-All Control provision. It mandates individuals or companies to notify the authorities at least 30 days in advance if they intend to export, transship, or transit any item not listed in the Strategic Items List (SIL), where there is knowledge or reasonable suspicion that the item may be misused or involved in 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 of the STA 2010,' the Ministry said in a statement today. MITI said Malaysia takes a firm stance against any attempt to circumvent export controls or engage in illicit trade. Any individual or company found violating the STA 2010 or related laws will face strict legal action. "While Malaysia supports investments and trade that align with international best practices and multilaterally agreed commitments, all entities operating in the country are expected to comply with applicable international obligations to avoid secondary sanctions on their businesses,' it said. MITI reaffirmed its commitment to maintaining a safe, secure, transparent and rules-based trading environment, and said it will not tolerate misuse of Malaysia's jurisdiction for illicit trade activities. - Bernama
The Sun
6 days ago
- Business
- The Sun
Malaysia requires permits for US-origin AI chip exports to tighten regulations
KUALA LUMPUR: The Ministry of Investment, Trade and Industry (MITI) has introduced an immediate permit requirement for all exports, transshipments, and transits of high-performance artificial intelligence (AI) chips originating from the US. This move aims to close regulatory loopholes and strengthen oversight under the Strategic Trade Act 2010 (STA 2010). The new rule, enforced under Section 12 of the STA 2010 (Catch-All Control provision), requires companies and individuals to notify authorities at least 30 days before exporting, transshipping, or transporting any unlisted items suspected of potential misuse. '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 Strategic Items List,' MITI stated. The ministry emphasised Malaysia's firm stance against export control violations and illicit trade. Non-compliance with the STA 2010 or related laws will result in strict legal action. 'Malaysia supports investments and trade that follow international best practices, but all businesses must adhere to global obligations to avoid secondary sanctions,' the ministry added. MITI reiterated its commitment to a secure and rules-based trading environment, warning against the misuse of Malaysia's jurisdiction for illegal trade activities. - Bernama
