Malaysia Implements Strict Controls on US-Origin AI Chip Exports
Malaysia has moved to immediately tighten its export controls on high-performance artificial intelligence (AI) chips originating from the United States. Effective today, all exports, transhipments, and transits of these chips will necessitate a Strategic Trade Permit under the Strategic Trade Act 2010 (STA 2010).
New Permit Requirement and ‘Catch-All Control’
The Ministry of Investment, Trade and Industry (MITI) announced on Monday that this measure falls under the ‘catch-all control’ provision of Section 12 of the STA 2010. This provision mandates that individuals or companies must notify the relevant authority at least 30 days in advance if there are reasonable grounds to suspect an item could be misused or employed in restricted activities, even if the item is not explicitly listed in the Strategic Items List (SIL).
Addressing Regulatory Loopholes
MITI clarified that this decision aims to close existing regulatory loopholes while the country conducts a comprehensive review to determine whether these specific AI chips should be formally added to the SIL.
Stance Against Illicit Trade
“Malaysia stands firm against any attempt to circumvent export controls or engage in illicit trade activities,” MITI stated, issuing a stern warning that strict legal action will be pursued against any party found in breach of the STA 2010 or related laws.
Compliance with International Obligations
While reaffirming its commitment to fostering investments and trade that align with international best practices and multilateral commitments, MITI underscored the importance for all entities operating within Malaysia to comply with relevant international obligations. This compliance is crucial to mitigate the risk of secondary sanctions.
Commitment to a Transparent Trading Environment
The ministry concluded by reiterating its dedication to maintaining a safe, secure, transparent, and rules-based trading environment, emphasising that any misuse of Malaysia’s jurisdiction for illicit trade activities will not be tolerated.
