- Permit now required for exporting US-origin AI chips from Malaysia
- 30-day advance notice mandatory for suspect or dual-use items
- Review underway to formally include AI chips in restricted list
In a meaningful regulatory measure, the Ministry of Investment, Trade and Industry (MITI) in Malaysia, revised controls on the exporting of high-performance AI chips from the USA. Henceforth, any and all exports, transhipments, and transit involving these chips must be conducted under the Strategic Trade Act 2010 (STA 2010) and require a Strategic Trade Permit (STP).
The announcement is made under Section 12 of STA, which requires a person who knows, or has reasonable grounds to suspect that an item will be misused or reused for the limited activities, to give notice to authorities 30 days in advance.
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This pro-active action is part of an ongoing review of regulations on whether this class of advanced AI chips should be on the officially maintained Strategic Item List (SIL). The objective is to help close regulatory gaps; to improve national compliance with international standards; and responsible behavior surrounding restricted items and technologies.
MITI emphasized the review does not signal a move against innovation or the trade of AI but that Malaysia must formalize its export practices in line with its multilateral commitments and global norms pertaining to non-proliferation. Every company offering/operating in Malaysia must ensure compliance with these requirements.
This development puts Malaysia in line with numerous countries that are tightening controls on emerging technologies - specifically around the export of AI and semiconductor technologies, where there is heightened global competition and geopolitical sensitivities.