KUALA LUMPUR – Companies must now apply for a special government permit before exporting, shipping through, or transiting high-performance artificial intelligence (AI) chips made in the United States, the Investment, Trade and Industry Ministry (Miti) announced today.
The new rule takes effect immediately and is meant to prevent such chips from being misused or illegally traded. It applies even though these AI chips are not currently listed as restricted under Malaysia’s Strategic Items List.
Miti said the move falls under the “Catch-All Control” clause in the Strategic Trade Act 2010, which allows the government to act when there is reason to believe an item could be used for harmful purposes.
“This initiative serves to close regulatory gaps while Malaysia undertakes further review on the inclusion of high-performance AI chips of US origin into the SIL of the STA 2010,” the ministry said in a statement.
Companies must notify Miti at least 30 days before making any shipment of such chips, even if the chips are not formally listed as controlled.
The ministry stressed it “takes a firm stance against any attempt to circumvent export controls or engage in illicit trade,” and warned that violators will face legal action.
While Malaysia welcomes trade and investment, Miti said all businesses must respect international rules to avoid potential sanctions.
“All entities operating in the country are expected to comply with applicable international obligations to avoid secondary sanctions on their businesses,” it said.
The ministry said it remains committed to ensuring Malaysia is not used as a hub for illegal trade, and that it upholds a “safe, secure, transparent and rules-based trading environment.” – July 14, 2025