Malaysia’s Ministry of Investment, Trade and Industry announced Monday that all exports, transshipments, and transit of high-performance AI chips originating from the United States will now require a trade permit. The measure takes effect immediately and is aimed at tightening control over sensitive technologies amid rising global concerns over illicit chip transfers.
Under the new directive, both individuals and companies must notify authorities at least 30 days in advance when dealing with any items not explicitly listed under Malaysia’s current strategic items list. The ministry said the move is part of a broader effort to update its regulatory framework and assess whether U.S.-origin AI chips should be included in its list of strategic goods.
In an official statement, the ministry emphasized its zero-tolerance stance on unauthorized exports: “Malaysia stands firm against any attempt to circumvent export controls or engage in illicit trade activities by any individual or company, who will face strict legal action if found violating the laws.”
The announcement comes amid increased scrutiny over global semiconductor trade, particularly involving technologies deemed critical to artificial intelligence development. According to a March report from the Financial Times, the U.S. has been pressuring Malaysia and other Southeast Asian countries to prevent advanced chips from reaching China through indirect routes.
Malaysia, a key player in the global semiconductor supply chain, has already begun tightening oversight in response. Authorities are also investigating whether local laws were violated in the shipment of servers tied to a fraud case in Singapore. These servers may have included high-performance chips subject to U.S. export restrictions.
By mandating permits for the movement of such technology, Malaysia aims to close potential loopholes that could be exploited for unauthorized trade. The country is currently reviewing its strategic items list to better align with evolving geopolitical and technological concerns.
This swift regulatory adjustment highlights Malaysia’s balancing act between supporting its semiconductor industry and adhering to international expectations around technology trade security.
