Malaysia Tightens Oversight on US-Made AI Chip Transfers

Malaysia has introduced new permit requirements for transfers of US-made AI chips under Section 12 of the Strategic Trade Act 2010. The regulation targets items not explicitly listed on Malaysia’s Strategic Items List, aiming to close regulatory gaps. Companies and individuals must notify authorities at least 30 days before shipping unlisted devices, ensuring customs can VET suspicious transfers.

The MOVE reflects Malaysia’s broader effort to scrutinize high-performance chips capable of advanced machine learning, even those transiting through the country. "Malaysia stands firm against any attempt to circumvent export controls or engage in illicit trade activities," the trade ministry warned, emphasizing strict penalties including fines and criminal charges.

This interim measure precedes a formal review to potentially add US-origin AI chips to the strategic items catalogue. The policy underscores growing global tensions over semiconductor supply chains and dual-use technology controls.