Malaysia Enforces Export Controls on U.S. AI Chips

(MENAFN) Malaysia has swiftly enacted new limitations on the export, transshipment, and transit of advanced artificial intelligence (AI) semiconductors originating from the United States.

According to local media reports published Monday, such activities will now require a Strategic Trade Permit before proceeding.

These enhanced regulations are being implemented under the Strategic Trade Act 2010, as disclosed by the Ministry of Investment, Trade and Industry (MITI), a news outlet reported.

The ministry emphasized, “Malaysia will not tolerate the misuse of its jurisdiction for illicit trading activities.”

Furthermore, MITI affirmed its dedication to maintaining “a safe, secure, transparent and rules-based trading environment with all its trade partners,” including the United States.

Last week, a news agency revealed that the U.S. government is preparing to limit shipments of sophisticated AI semiconductors to Malaysia, aiming to prevent these technologies from being rerouted to China.

This initiative is part of Washington’s broader efforts to clamp down on unlawful semiconductor trafficking.

Although Malaysian officials have previously vowed to enhance inspection measures on imports, exports of AI chips to the Southeast Asian nation have surged.

This uptick has drawn heightened scrutiny from the U.S., leading to potential restrictions, which could involve temporary exceptions for American and allied companies operating within Malaysia.

Under the newly established protocol, entities and individuals are now mandated to inform Malaysian authorities at least 30 days in advance before transferring AI chips—if they are aware of, or suspect, any potential misuse or involvement in prohibited dealings.

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