Malaysia has announced a significant regulatory shift concerning the movement of high-performance artificial intelligence (AI) chips of U.S. origin. Effective immediately, exporters, transshippers, and those involved in transit operations of such chips will be required to obtain a trade permit, the Ministry of Investment, Trade and Industry (MITI) said in a statement released Monday.
The new policy is part of a broader review aimed at addressing regulatory gaps and ensuring alignment with global best practices in the handling of strategic and sensitive technologies.
“Any individual or company intending to export, transship or transit items not listed in the Strategic Trade Act must notify the relevant authorities at least 30 days in advance,” MITI stated. The requirement adds a new layer of oversight, particularly as Malaysia positions itself as a critical player in the global semiconductor and AI supply chain.
While the directive does not constitute a ban, it signals Malaysia’s increasing vigilance in controlling technologies that could have dual-use applications both civilian and military. The move also aligns Malaysia more closely with global standards and mirrors recent tightening of chip export regulations by other countries, including the United States.
Malaysia serves as a vital node in the global semiconductor ecosystem, hosting major assembly and testing facilities. The country’s efforts to ensure its technology exports are not misused come at a time of heightened geopolitical tension, particularly between Washington and Beijing, over access to cutting-edge chips and AI capabilities.
Analysts suggest the move could have implications for multinational companies operating within Malaysia, especially those handling AI chips from firms like NVIDIA, AMD, and Intel. These companies may now need to reassess their logistics and compliance frameworks to avoid disruptions.
MITI clarified that this regulatory update is not aimed at stifling innovation but is part of responsible governance in the age of emerging technologies. The ministry is expected to release further guidance in the coming weeks to aid businesses in complying with the new requirements.
This decision underscores Malaysia’s growing role not just as a manufacturing hub, but also as a responsible steward of next-generation technologies on the global stage.
