Malaysia imposes new curbs on AI chip exports as US targets China smuggling
The measures, which are effective immediately, will require individuals and firms to notify Kuala Lumpur at least 30 days before exporting or shipping such hardware.
Malaysia will now require permits for exports of high-performance US artificial intelligence (AI) chips, suggesting the government is seeking to clamp down on potential diversion of the sensitive components to places like China.
Effective immediately, individuals and companies must notify Kuala Lumpur at least 30 days prior to exporting or shipping such hardware, Malaysia's trade and industry ministry said on July 14.
They must inform the agency if they know or 'have reasonable grounds' to suspect the items will be misused or used for restricted activities.
Malaysia 'will not tolerate the misuse of Malaysia's jurisdiction for illicit trading activities,' the ministry said.
Kuala Lumpur has come under increasing pressure from Washington – which has effectively
banned the sale of advanced AI chips to China since 2022 – to halt the suspected flow of those parts to China via intermediaries in Malaysia.
Malaysian authorities said in March that they would tighten regulations on the country's burgeoning data centre industry, which relies on chips from the likes of Nvidia.
The new permit requirements aim to 'close regulatory gaps,' according to the ministry's statement, while Malaysia 'undertakes further review' of the potential inclusion of AI chips to a national list of items covered by the Strategic Trade Act.
Top stories
Swipe. Select. Stay informed.
Singapore Singapore to train more aviation and maritime officials from around the world
Singapore Special edition SG60 Nets card now on sale for $10
Singapore Same person, but different S'porean Chinese names? How have such naming practices evolved?
Business Singapore's economy sees surprise expansion in Q2 despite US tariff uncertainty: Advance estimate
Singapore Jail for woman who opened bank accounts that received over $640.7m, including scam proceeds
Sport After Olympic heartbreak, Singaporean swimmer Chantal Liew turns pain into inspiration
Business From wellness zone to neurodivergent room: How companies are creating inviting, inclusive offices
Singapore Swift action needed to stop vaping's slide from health risk to drug epidemic
The ministry did not immediately respond to questions about whether the controls came at Washington's urging.
Semiconductor sales to Malaysia also are a focal point of a court case in neighboring Singapore, where prosecutors charged
three men with defrauding customers about the ultimate destination of AI servers – originally shipped from the island nation to Malaysia – that may have contained advanced Nvidia chips.
Malaysia said in March that its investigation into the matter hadn't uncovered evidence of such shipments, and that the country will continue to monitor for possible fraud.
Nvidia has not been accused of any wrongdoing in Singapore's investigation.
Malaysia is a key part of the AI supply chain, home to many facilities used for developing and deploying AI models.
American companies including Oracle are massively
expanding their data centre footprints in the country , which saw an increase in imports of crucial components this year – particularly in April, the month before the US was expected to start requiring licences to ship AI chips to Malaysia and many other countries.
US President Donald Trump's administration decided not to move forward with that policy in May, though officials have since drafted a separate regulation that would mandate such approvals for AI chip shipments to Malaysia and Thailand in particular – an effort that seeks to crack down on suspected semiconductor smuggling into China, Bloomberg reported.
That rule is not yet finalised and could still change.
Nvidia's chief executive Jensen Huang has said there's 'no evidence' of AI chip diversion, in general remarks that didn't touch on any particular country.
In response to earlier Bloomberg queries about the potential US curbs, Malaysia's trade ministry said that it welcomes dialogue with the US and other nations to 'clarify any misunderstandings,' while also warning that unilateral restrictions could disrupt legitimate trade and hamper innovation.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
2 hours ago
- Straits Times
Brazil still waiting for US reply to May trade proposal, vice president says
Find out what's new on ST website and app. Brazil's Vice President Geraldo Alckmin and Brazil's President Luiz Inacio Lula da Silva attend a ceremony at the Planalto Palace, in Brasilia, Brazil, July 14, 2025. REUTERS/Adriano Machado BRASILIA - Brazil has yet to hear a response from Washington about an offer it made in trade talks two months ago, Vice President Geraldo Alckmin said on Monday, after U.S. President Donald Trump slapped much higher tariffs on Brazil last week. Speaking to reporters at the presidential palace, Alckmin said President Luiz Inacio Lula da Silva had set up a task force to start discussing a response with business leaders on Tuesday. Last week, Trump imposed what he called a reciprocal tariff targeting Latin America's largest economy, rising to 50% from 10% starting in August, and demanded an end to the trial of former President Jair Bolsonaro for allegedly plotting a coup. Alckmin added on Monday that the Brazilian government would also seek talks with U.S. companies affected by the measure. He said the government had not yet asked for a delay or reduction in the new tariffs after Trump's announcement, but was instead engaging with the most-affected industries to ensure the private sector mobilizes and coordinates with U.S. counterparts to help reverse Trump's measure. Lula will sign on Monday a decree setting criteria for his government's response to foreign trade measures hurting the Brazilian economy, his chief of staff Rui Costa told journalists earlier in the day. His decree regulating the trade reciprocity law, which Brazil's Congress passed in April, should be published in the official gazette on Tuesday, Costa added. REUTERS Top stories Swipe. Select. Stay informed. Singapore HSA intensifies crackdown on vapes; young suspected Kpod peddlers nabbed in Bishan, Yishun Singapore Man charged over distributing nearly 3 tonnes of vapes in one day in Bishan, Ubi Avenue 3 Singapore Public healthcare institutions to record all Kpod cases, confiscate vapes: MOH, HSA Singapore Man allegedly attacks woman with knife at Kallang Wave Mall, to be charged with attempted murder Singapore Singapore boosts support for Timor-Leste as it prepares to join Asean Singapore UN aviation and maritime agencies pledge to collaborate to boost safety, tackle challenges Singapore High Court dismisses appeal of drink driver who killed one after treating Tampines road like racetrack Singapore 18 years' jail for woman who hacked adoptive father to death after tussle over Sengkang flat
Straits Times
2 hours ago
- Straits Times
‘We now start each day looking at data'
Ms Ong Hwee Hwee, who oversees ST's visualisation cluster, says it is about 'going back to good old basics: Know who you are writing for – but with more than gut feel to rely on'. Ong Hwee Hwee, 49 Portrait Ms Ong Hwee Hwee joined The Straits Times in 1999 as a translator. Over the years, she took on editing roles at the foreign and Singapore desks, as well as an overseas posting as the paper's Taiwan correspondent from 2005 to 2008. In 2014, she made the leap from print to digital journalism, at a time when the media industry was undergoing a transformation from print to online. She was the digital editor from 2016 to 2023, and also led The Straits Times' audience growth strategy. In this capacity, Ms Ong was involved in the online coverage of major news events, from the death of Singapore's founding prime minister Lee Kuan Yew in 2015, to the Covid-19 pandemic, and Singapore's general elections. Ms Ong, 49, now oversees the visualisation cluster, comprising the digital graphics, video, photo and art desks, as well as the product and tech teams who build and develop The Straits Times' website and apps. Recollections 'It was March 23, 2015, just after 4am. I was woken up by a call from my editor, who said: 'He has passed; let's get down to work.' Within minutes, I was in the next room sitting in front of my laptop, which had been left switched on so I could start work quickly. My colleagues were up and working from home too, and we were communicating online. I was then working at The Straits Times' digital desk, which was responsible for putting out breaking news. We were on the alert after Singapore's founding prime minister Lee Kuan Yew was hospitalised for severe pneumonia on Feb 5. Top stories Swipe. Select. Stay informed. Singapore HSA intensifies crackdown on vapes; young suspected Kpod peddlers nabbed in Bishan, Yishun Singapore Man charged over distributing nearly 3 tonnes of vapes in one day in Bishan, Ubi Avenue 3 Singapore Public healthcare institutions to record all Kpod cases, confiscate vapes: MOH, HSA Singapore Man allegedly attacks woman with knife at Kallang Wave Mall, to be charged with attempted murder Singapore Singapore boosts support for Timor-Leste as it prepares to join Asean Singapore UN aviation and maritime agencies pledge to collaborate to boost safety, tackle challenges Singapore High Court dismisses appeal of drink driver who killed one after treating Tampines road like racetrack Singapore 18 years' jail for woman who hacked adoptive father to death after tussle over Sengkang flat The official announcement of Mr Lee's passing came at 4.07am. By 4.21am, we had published the news and sent out the news alert. In the hours that followed, there was a live stream which showed then Prime Minister Lee Hsien Loong announcing the death of his father: 'The first of our founding fathers is no more.' Condolences and tributes poured in, and we put up a microsite in remembrance of the late Mr Lee. In the week that followed, a live blog captured the outpouring of grief and gratitude, as Singaporeans lined up in the sun for hours to pay their last respects, and stood in the rain to bid a final farewell to Mr Lee during the funeral procession. It was an emotional week for Singaporeans. For us in the newsroom, it was also one of the biggest moments in the early days of our digital journey. Through live blogs, videos, almost round-the-clock updates and also an e-book, Lee Kuan Yew: The Final Journey, we captured the mood of a country in mourning, and the life of a great man who built an unlikely nation. In particular, our live blogging of the week-long mourning period was something that readers followed day after day. Till this day, I remember blogging and reading the heart-warming anecdotes and poignant moments of volunteers distributing food and drinks, or people looking out for one another as they stood in quiet solidarity. Live blogging was just one of many new things we explored in the course of our digital transformation. We tried marrying storytelling with new technology, with augmented reality, virtual reality (VR) and generative artificial intelligence being the latest. One memorable project for me was using VR to visualise the Merlion statue being submerged by rising sea levels to highlight the threat of climate change. We challenged ourselves to tell an 800-word story in a two -minute video. We crunched numbers into graphics that users could share with others on social media. But the most significant change for me has been in the way we inform and interact with our audiences. We now start each day looking at data to understand what resonates with them. It's about going back to good old basics: Know who you are writing for – but with more than gut feel to rely on.'
Straits Times
2 hours ago
- Straits Times
From crisis to comeback: How The Straits Times reported Singapore's economic ups and downs
Find out what's new on ST website and app. The paper has chronicled economic realities. Post-independence, five turbulent periods tested the nation's resilience. The Straits Times has chronicled Singapore's economic highs and lows, capturing pivotal moments with immediacy, insight – and even foresight. Sometimes, a newspaper article can offer a rich and nuanced understanding of a past era that can't quite be captured by a history book. The Straits Times, Singapore's paper of record since 1845, has chronicled the country's economic highs and lows, capturing pivotal moments with immediacy, insight – and even foresight. Take a brief article titled 'Malayan trade in 1930', published on March 13, 1931. Though short, the report offers important clues to the impact of the Great Depression on British Malaya and, by extension, Singapore. The article highlighted how the global downturn, which began in 1929, severely affected the two mainstays of Malayan trade: tin and rubber. Even opium, then still legally traded, was declining as a revenue source. The piece noted that the nascent palm-oil industry could serve as a 'third string' to reduce economic over-reliance on tin and rubber, a hint of the concept of diversification, which would later become a policy mantra for independent Singapore's economic planners. An article, titled 'Malayan trade in 1930', published in The Straits Times on March 13, 1931. PHOTO: ST FILE The writer also looked to Singapore for industrial promise, noting its 'illimitable supplies of cheap labour from east and west – China and India', and the slow but steady emergence of a manufacturing base. The Great Depression, which ended with the onset of World War II, marked the beginning of the end of British global economic dominance. By the end of the war, the United States had emerged as the pre-eminent global power. Top stories Swipe. Select. Stay informed. Singapore HSA intensifies crackdown on vapes; young suspected Kpod peddlers nabbed in Bishan, Yishun Singapore Man charged over distributing nearly 3 tonnes of vapes in one day in Bishan, Ubi Avenue 3 Singapore Public healthcare institutions to record all Kpod cases, confiscate vapes: MOH, HSA Singapore Man allegedly attacks woman with knife at Kallang Wave Mall, to be charged with attempted murder Singapore Singapore boosts support for Timor-Leste as it prepares to join Asean Singapore UN aviation and maritime agencies pledge to collaborate to boost safety, tackle challenges Singapore High Court dismisses appeal of drink driver who killed one after treating Tampines road like racetrack Singapore 18 years' jail for woman who hacked adoptive father to death after tussle over Sengkang flat Singapore, gaining independence in 1965, began a dramatic industrial transformation. Manufacturing took the lead over commodity trade, and the paper continued to document the journey of modern Singapore's economy, through its triumphs and turbulence alike. Here are five key moments: Independent Singapore's first recession (1985) In the two decades following independence, Singapore focused on rapid industrialisation through export-led growth. Foreign investment and labour-intensive manufacturing helped reduce unemployment and raise incomes. But by 1985, its first post-independence economic recession loomed, triggered by external economic headwinds and internal structural weaknesses. Early warnings came from then Prime Minister Lee Kuan Yew. In his New Year message on Jan 1, 1985, he cautioned about slowing growth in the US, Japan and Europe and warned of knock-on effects across Asean and developing economies. Among other things, the developed economies had crushed their own economic growth by raising interest rates sharply to control runaway energy prices caused by the 1979 revolution in Iran, a major oil exporter. This led to a drop in global demand, hitting Singapore's export-dependent economy hard. At home, Singapore was grappling with rising business costs after two decades of rapid growth. The construction sector, which had boomed in the early 1980s, also began to contract as projects slowed and oversupply loomed. In March 1985, then Minister for Trade and Industry Tony Tan announced the formation of an Economic Committee, led by then Minister of State for Defence and Trade and Industry Lee Hsien Loong, to study the causes of the downturn and map out recovery strategies. It became clear that unprecedented measures were needed to shore up the economy. The most controversial proposal was to sharply cut employers' Central Provident Fund (CPF) contributions from 25 per cent to 10 per cent. The aim was to reduce business costs and restore competitiveness. The proposed cut led to heated parliamentary debates. Even among People's Action Party MPs, views were divided. Public reaction was equally intense. The Straits Times published letters from readers on both sides of the argument. The Economic Committee's report in February 1986 recommended a package of reliefs and reforms that would inject $2.7 billion into the ailing economy and make Singapore a developed country by 1990. The boost came from measures including the proposed two-year cut in employers' CPF contribution, and a 10-point cut in corporate tax and the top income tax rate. On Feb 14, 1986, ST reported on the Economic Committee recommending a package of reliefs and reforms to boost Singapore's economy. PHOTO: ST FILE The committee also said flexibility was needed in all areas of the economy, including government policies and wage structures. 'The effect of these cost-cutting measures will be a temporary drop in the standard of living of Singaporeans,' the report said. 'This is unpalatable but inevitable. It is the only way companies can regain their profitability, so that Singapore can prosper and our incomes rise again.' The recession also triggered a major corporate failure in Singapore. In November 1985, Pan-Electric Industries, a conglomerate involved in marine salvage, hotels and property, went bankrupt with massive unpaid debts. It sent shockwaves through Singapore's stock market and financial sector. Mr Lee Kuan Yew's New Year message in 1986 laid bare the toll: rising unemployment, falling exports and a general sense of uncertainty. But from the crisis came structural reforms that strengthened the economy down the road, including wage flexibility, productivity drives and a shift towards higher value-added industries. Asian financial crisis (1997 to 1998) Singapore's economy rebounded strongly after the 1985 crisis, growing steadily through the early 1990s. But in 1997, a storm swept through Asia's financial markets, sparked by the collapse of the Thai baht on July 2. Thailand's decision to float the baht set off a chain reaction across the region. One headline read: 'Floating baht seen as a devaluation'. In an editorial, the paper asked: 'What else can a beleaguered government do when the economy threatens to seize up with falling exports, massive debts, a growing trade deficit and its currency under relentless speculative attack?' The Singapore dollar was able to avoid a massive decline, thanks to the central bank's policy of managing it against a basket of currencies rather than pegged to the US dollar, as Thailand had been doing before floating the baht. But by the second half of 1998, regional contagion had dragged Singapore into recession. Gross domestic product (GDP) shrank by 2.2 per cent for the year. 'Singapore in recession', read the front-page headline on Nov 11, 1998. PHOTO: ST FILE Singapore's flexible exchange rate mechanism helped maintain its export competitiveness, resulting in an economic rebound in 1999 led by the manufacturing sector. The recovery was sustained through the year and overall GDP for 1999 grew by 5.7 per cent. The Government also helped by announcing off-Budget measures in June 1998 that were worth $2 billion, aimed at reducing business costs. crash and recession (2001) The burst of the bubble in 2000 marked the end of an era of exuberance in global technology stocks. Over the next two years, trillions of dollars in market value were wiped out. Singapore, heavily reliant on electronics manufacturing and global trade, was not spared. A March 14, 2000, front-page article noted: 'Sentiments were unnerved by the knocking suffered by technology stocks whose meteoric rise in recent months had seemed unstoppable.' The Singapore economy contracted by 1.1 per cent in 2001, a sharp reversal from the 9 per cent growth in 2000. This was exacerbated by the Sept 11, 2001, terrorist attacks in the US which rattled global markets, curbed consumer confidence and slowed down travel and investment. Singapore's downturn was thankfully brief, but it marked another turning point: a further diversification in sources of economic growth by shifting towards services, financial resilience and innovation-driven growth. Global financial crisis (2007 to 2009) The financial crisis began with the collapse of sub-prime mortgage markets in the US and quickly escalated into a global credit crunch following the bankruptcy of investment bank Lehman Brothers on Sept 15, 2008. Although Singapore's banks had limited direct exposure to US sub-prime assets, the global freeze in lending and plummeting demand for exports hit the economy hard. In the fourth quarter of 2008, Singapore's GDP shrank on a seasonally adjusted basis by 2.3 per cent quarter on quarter, followed by a 2.6 per cent contraction in the first quarter of 2009. Public anger erupted when thousands of consumers lost their savings in complex investment products linked to Lehman Brothers, such as Minibonds and High Notes 5. About 10,000 retail investors, including the elderly and less educated, lost over $500 million in products sold by financial institutions here. On Oct 11, 2008, more than 500 angry investors turned up at the Speakers' Corner in Hong Lim Park. Several such protests were held every Saturday in the weeks to follow. The Straits Times reported on these extensively. A special report in the paper on Oct 19, 2008, about the Lehman Brothers debacle. PHOTO: ST FILE The Government launched investigations, which led to penalties for 10 financial institutions, and tighter industry supervision. The Government also pledged $2.9 billion in November 2008, followed by a massive $20.5 billion Resilience Package in January 2009. For the first time in history, Singapore dipped into its national reserves, drawing $4.9 billion to support the economy and jobs. In the end, it needed $4 billion, and was able to return the full amount into the reserves by the end of its term in 2011. The Singapore economy weathered the financial storm better than feared. In August 2009, then Prime Minister Lee Hsien Loong said that 'the worst is over for the Singapore economy' and that 'the eye of the storm has passed'. In November 2009, the Ministry of Trade and Industry declared that the recession was effectively over. Covid-19 pandemic (2020) The Covid-19 pandemic led to Singapore's worst recession since independence, with the economy contracting by 3.8 per cent in 2020. The 'circuit breaker' period from April to June 2020 severely impacted the food and beverage, retail and travel sectors. The Government responded with a series of stimulus packages totalling nearly $100 billion, or about 20 per cent of GDP. This included a Jobs Support Scheme to subsidise wages and prevent widespread layoffs. For the second time in history, Singapore tapped its national reserves. The Government drew about $40 billion from past reserves for Covid-19 response measures across financial years 2020 to 2022. By late 2021, with high vaccination rates and phased reopening, Singapore's economy began to recover. The rebound was uneven, but GDP grew by 9.8 per cent that year.
