KUALA LUMPUR, July 17 — In a decisive move to avoid secondary sanctions and align with international trade regulations, Malaysia’s Ministry of Investment, Trade and Industry (Miti) has mandated that all exports, transhipments, and transits of high-performance US-origin AI chips now require a Strategic Trade Permit under Section 12 of the Strategic Trade Act 2010.
The policy, effective immediately, seeks to close regulatory loopholes as the country reassesses whether to formally list such chips under the Strategic Items List. The announcement comes as global tensions escalate over AI chip distribution, with the US reportedly eyeing new restrictions to curb shipments to Malaysia amid concerns over diversions to China.
Miti stressed its zero-tolerance approach to violations of the STA 2010, urging compliance from all companies and individuals, who must report any suspected misuse 30 days in advance. The ministry reaffirmed Malaysia’s commitment to safe, rules-based trade while balancing national interests and global responsibilities in the rapidly evolving semiconductor landscape.
