Malaysia Restricts AI Chip Trade

Malaysia Restricts AI Chip Trade

14 July 2025

Malaysia now requires permits for exports and transshipments of high-performance US-origin AI chips. The move, effective immediately, aims to prevent the diversion of sensitive technology, particularly to China. This decision falls under the Strategic Trade Act 2010, specifically Section 12, which mandates a 30-day advance notification for items suspected of misuse, even if unlisted.

The Ministry of Investment, Trade and Industry (MITI) stated that this action closes regulatory loopholes while reviews are conducted to formally include these AI chips in the Strategic Items List. The ministry has also warned of strict legal action against those attempting to circumvent export controls.

These restrictions arrive amidst US pressure to control the flow of advanced chips to China. The US is also implementing stricter export controls, requiring licenses for shipments to Malaysia and Thailand unless destined for US-approved data centres. Malaysia's move highlights the increasing geopolitical tensions surrounding AI chip technology and supply chains.

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Published on 14 July 2025
aiaichipsexportcontrolmalaysiatradetechnology
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