If you’re planning to export or move artificial intelligence (AI) chips made in the United States through Malaysia, you’ll now need a trade permit. Malaysia’s Ministry of Investment, Trade and Industry (MITI) announced that the export, transhipment, and transit of high-performance AI chips of U.S. origin are now subject to permit requirements, effective immediately.
This change comes as part of Malaysia’s move to tighten oversight of sensitive technology and prevent unauthorised trade. If you or your company are dealing with such chips—even if they aren’t specifically listed under Malaysia’s strategic items list—you must notify the authorities at least 30 days before making a move.
Stricter controls to close regulatory gaps
According to MITI’s official statement, this decision is part of a broader review to determine whether high-performance AI chips from the U.S. should be officially added to the country’s list of strategic items. While that review is ongoing, the permit requirement ensures that Malaysia maintains control over where and how such technology is deployed.
Why is this happening now? Malaysia said it’s acting to close potential regulatory loopholes and protect against any illegal or unauthorised trading. The government has made it clear that any attempt to bypass these rules will result in firm legal consequences. As the statement put it, “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.”
Pressure from the U.S. and local investigations is underway
This move also reflects broader geopolitical concerns. In recent months, the United States has stepped up efforts to stop the flow of advanced AI chips to China, given their strategic value in defence and tech development. As a key player in the global semiconductor supply chain, Malaysia is now aligning its policies more closely with U.S. trade controls, especially around sensitive technologies.
Back in March, the Financial Times reported that the U.S. was urging countries like Malaysia to tighten their export controls, particularly to prevent advanced chips from reaching China through third-party nations.
Adding to the urgency, Malaysia is currently investigating a case involving the shipment of servers connected to a Singapore-based fraud investigation. These servers may have contained advanced U.S.-made chips that fall under export restrictions. Authorities are now investigating whether any Malaysian laws were violated during the process.
Malaysia’s role in the global semiconductor network
You should be aware that Malaysia plays a crucial role in the global semiconductor industry. The country is a major hub for chip packaging, testing, and logistics. As such, any policy change—like this new trade permit requirement—can have ripple effects throughout the tech industry.
With this latest measure, Malaysia is sending a strong message: it intends to remain a responsible player in the international tech trade, particularly when it comes to advanced technologies with national security implications.
