Latest news with #STA2010
The Star
6 hours ago
- Business
- The Star
Miti requires permit for US-made AI chip exports
KUALA LUMPUR: The Investment, Trade and Industry Ministry (Miti) has imposed an immediate requirement for a Strategic Trade Permit on all exports, transshipments and transits of high-performance artificial intelligence (AI) chips of US origin, as part of efforts to close regulatory gaps. Miti said the new measure falls under Section 12 of the Strategic Trade Act 2010 (STA 2010), known as the Catch-All Control provision. It mandates individuals or firm to notify the authorities at least 30 days in advance if they intend to export, transship, or transit any item not listed in the Strategic Items List (SIL), where there is knowledge or reasonable suspicion that the item may be misused or involved in restricted activities. 'This initiative serves to close regulatory gaps while Malaysia undertakes further review on the inclusion of high-performance AI chips of US origin into the SIL of the STA 2010,' Miti said in a statement yesterday. Miti said Malaysia takes a firm stance against any attempt to circumvent export controls or engage in illicit trade. Any individual or company found violating the STA 2010 or related laws will face strict legal action. 'While Malaysia supports investments and trade that align with international best practices and multilaterally agreed commitments, all entities operating in the country are expected to comply with applicable international obligations to avoid secondary sanctions on their businesses,' it said. Miti reaffirmed its commitment to maintaining a safe, secure, transparent and rules-based trading environment, and said it will not tolerate misuse of Malaysia's jurisdiction for illicit trade activities. Commenting on the development, SPI Asset Management managing director Stephen Innes said the new export control does not directly hinder Malaysia's ongoing AI and data centre expansion efforts, which are driven by infrastructure investment, cloud partnerships and local talent. However, it does signal tighter regulatory oversight. 'If you want to play in the AI sandbox, you now need to watch your sourcing, disclosure and compliance trail more carefully,' he told Bernama. Innes said while multinational technology firms are likely to view this as a manageable hurdle, smaller local players or startups could face some challenges without the benefit of robust legal support. On the chip industry itself, he said Malaysia's core strength in testing and packaging means it may be spared the brunt of disruptions. 'This law forces the industry to mature quickly in terms of compliance infrastructure. The upside is that it may accelerate Malaysia's push toward more transparent, globally integrated standards,' he added. Meanwhile, economist Professor Geoffrey Williams said the changes in regulations showed a more cooperative approach from the tariff talks, which is a good sign. Williams said this indicated that both sides are listening to each other and responding quickly. 'This will deliver a much better chance of lowering the 25% reciprocal tariffs and is better than taking a belligerent stance. It is a closer win-win engagement,' he said. Williams said the United States has been concerned that AI chips are being sent to China through third countries in Asean, in breach of the US embargo. 'Therefore, getting better coordinated regulation across Asean is a positive response to address US concerns, and Malaysia is playing a key role in this,' he said, adding that this would have no significant effect on data centre and AI operations in Malaysia, except to restrict illicit activities.
Malaysian Reserve
14 hours ago
- Business
- Malaysian Reserve
Tengku Zafrul: Malaysia's trade performance on track to hit growth target
KUALA LUMPUR — Malaysia's trade performance for this year remains within expectations and is on track to reach the target growth of four to five per cent, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz (picture). Nevertheless, Tengku Zafrul said the Ministry of Investment, Trade and Industry (MITI) expects global trade to moderate in the second half of 2025 (2H 2025) amid ongoing uncertainties. 'Yes, there is some front-loading, especially in the last five months, but at the same time, given the Aug 1 deadline (for US tariff), we expect the (moderation) to continue. 'We are going to issue the latest trade numbers for June on Friday, and what is important is that Malaysia's trade performance is still within expectations,' he told a press conference on MITI's report card for the second quarter of 2025. Tengku Zafrul noted that the projection by Bank Negara Malaysia for trade growth is around five per cent this year, while the Ministry of Finance has projected about 3.9 per cent. 'We will continue to focus on achieving (those) targets,' he said. Earlier during the report card presentation, Tengku Zafrul highlighted that the country has been gathering a total of RM25.6 billion in potential investments and RM30.8 billion in potential exports from the trade and investment missions held to date. Malaysia has also recently inked new free trade agreements with the European Free Trade Association (EFTA) in June, which is expected to reach a total of RM14.4 billion in trade with the EFTA market. Meanwhile, on the tariff negotiation with the United States, Tengku Zafrul said his ministry is now looking at tariff and non-tariff related matters that can be agreed upon by both parties. 'I have set a deadline for the negotiation team, and there are issues that we still need time for because they involve many agencies and ministries. We are trying to conclude it before US President Donald Trump's tariff deadline on Aug 1st. 'We are doing the calculations as well on what the impact is to our export and the impact to the government's revenue as well. We will continue to have another discussion this week and accelerate the discussion until the end of this month,' he added. Tengku Zafrul noted that some concerns on non-tariff issues have been addressed by MITI through the implementation of the Strategic Trade Act 2010 (STA 2010), while 'red line' issues, such as those related to the equity interest in certain sectors, need to be studied carefully. 'As you know, Malaysia has equity restrictions for foreign shareholders for certain sectors, so there is a request for us to relook at or liberalise those sectors. Many countries have also been asked to do the same. 'For us, we need to consult the industries whether we are ready to liberalise those equity shareholding restrictions, especially when it comes to foreign equity restrictions that we have for many sectors. So we need to study carefully what the impact is,' he said. — BERNAMA
Barnama
18 hours ago
- Business
- Barnama
AI Chip Trade Permit Ensures Malaysia's Compliance, Credibility
BUSINESS By Rosemarie Khoo Mohd Sani KUALA LUMPUR, July 15 (Bernama) -- The trade permit imposed for United States (US) origin high-performance artificial intelligence (AI) chips reaffirms Malaysia's commitment as a trusted hub for managing advanced technology exports, transshipments, and transits. In stating this, Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai said the measure sent a strong signal of Malaysia's seriousness in complying with international trade obligations, including the US export controls. 'The trade permit makes it clear that the government will not tolerate any abuse of exports, transshipment, or illicit trading,' Wong told Bernama when asked to comment on the current measures announced by the Ministry of Investment, Trade and Industry (MITI) on Monday. Wong added that many Malaysian firms have already taken proactive steps, including internal audits, to ensure they adhere to local and global regulations. 'We in Malaysia, both the private sector and government, take this very seriously. We want to make sure everything is fully compliant,' he added. However, Wong said there is a need for greater clarity from the government on specific reporting obligations under the strategic trade permit. 'We need to know what needs to be reported and what constitutes notification to authorities. Once this is clear, companies can incorporate any additional steps needed to meet compliance,' he said. MITI on Monday announced that, effective immediately, all exports, transshipments, and transits of US-origin high-performance AI chips would be subject to a Strategic Trade Permit under Section 12 of the Strategic Trade Act 2010 (STA 2010), also known as the Catch-All Control provision.
The Sun
19 hours ago
- Business
- The Sun
AI chip trade permit ensures Malaysia's compliance, credibility
KUALA LUMPUR: The trade permit imposed for United States (US) origin high-performance artificial intelligence (AI) chips reaffirms Malaysia's commitment as a trusted hub for managing advanced technology exports, transshipments, and transits. In stating this, Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai said the measure sent a strong signal of Malaysia's seriousness in complying with international trade obligations, including the US export controls. 'The trade permit makes it clear that the government will not tolerate any abuse of exports, transshipment, or illicit trading,' Wong told Bernama when asked to comment on the current measures announced by the Ministry of Investment, Trade and Industry (MITI) on Monday. Wong added that many Malaysian firms have already taken proactive steps, including internal audits, to ensure they adhere to local and global regulations. 'We in Malaysia, both the private sector and government, take this very seriously. We want to make sure everything is fully compliant,' he added. However, Wong said there is a need for greater clarity from the government on specific reporting obligations under the strategic trade permit. 'We need to know what needs to be reported and what constitutes notification to authorities. Once this is clear, companies can incorporate any additional steps needed to meet compliance,' he said. MITI on Monday announced that, effective immediately, all exports, transshipments, and transits of US-origin high-performance AI chips would be subject to a Strategic Trade Permit under Section 12 of the Strategic Trade Act 2010 (STA 2010), also known as the Catch-All Control provision. Under the provision, individuals or companies are required to notify authorities at least 30 days in advance if they intend to export, transship, or transit any unlisted item that may be suspected of being misused or involved in restricted activities. Meanwhile, Pacific Research Center of Malaysia principal adviser Oh Ei Sun said the move would not affect local data centre or AI development projects, as it pertains primarily to the transshipment or export of US-made chips, not their import into Malaysia for domestic use. 'I would not say Malaysia's industry lacked transparency before this. But the US is now taking this issue very seriously, and we are acting accordingly because we value our overall relationship with the US,' he said. - Bernama
Straits Times
a day ago
- Business
- Straits Times
Malaysia tightens domestic oversight on US chip movements as tariffs negotiation tactic
Industry players and analysts view Kuala Lumpur's plan on the domestic movements of the high-end chips as a concession to Washington. - Malaysia has moved to tighten oversight on the movement of high-end chips from the United States by imposing a strategic trade permit requirement, in the hope of lowering the tariffs imposed by US President Donald Trump from Aug 1. Mr Trump on July 8 sent a letter to Malaysia's King Sultan Ibrahim Iskandar and Prime Minister Anwar Ibrahim, formally notifying them of a 25 per cent tariff on Malaysian exports – a percentage point higher than the 24 per cent announced in April 2025. Industry players and analysts view Kuala Lumpur's plan on the domestic movements of the high-end chips as a concession to Washington aimed at preserving its trade ties with the US – Malaysia's second-largest trading partner after China, and its top export destination, especially for semiconductors and electronic goods. Malaysia recorded a trade surplus of US$24.8 billion (S$31.77 billion) with the US in 2024. Malaysia's Ministry of Investment, Trade and Industry on July 14 invoked the Strategic Trade Act 2010 (STA 2010) – regulates the export, transit, transhipment and brokering of sensitive goods to prevent their use in weapons of mass destruction (WMDs) – to compel individuals or companies to notify the authorities at least 30 days before the cross-border movement of these chips if there is a possibility that they may be used for a restricted activity. 'This initiative serves to close regulatory gaps while Malaysia undertakes further review on the inclusion of high-performance AI chips of US origin into the strategic item listing (SIL) of the STA 2010,' the ministry's statement said. Nuclear materials, electronics, computers, telecommunication and information security goods that may facilitate the development of WMDs are regulated under the SIL. Singapore's Home Affairs and Law Minister K Shanmugam on May 3 revealed that computer servers that might contain Nvidia chips had been exported to Malaysia from the Republic, and possibly to an unknown final destination . Singapore had come under the spotlight in a Washington investigation in February into whether Chinese start-up DeepSeek had circumvented US restrictions on advanced Nvidia chips by buying them from third parties in other countries, including the Republic. 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 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 Asia Thailand's anti-graft agency set to probe suspended premier Paetongtarn 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 Kuala Lumpur's move to enforce the new permit requirement for high-end chips signals the country's commitment to curbing activities prohibited by Washington, said Malaysia Semiconductor Industry Association president Wong Siew Hai. 'It's another reinforcement from the government to show its dead seriousness in complying with US requirements. We want to position Malaysia as a trusted nation for handling high-end chips,' he told The Straits Times. Datuk Wong noted that Malaysia's semiconductor industry, which accounted for over 7 per cent of global export market share in 2024, has a longstanding track record of compliance, including adhering to US export controls that prohibit shipments to sanctioned countries for more than four decades. While acknowledging that high-end chips are not directly linked to WMD, academic Dr Lam Choong Wah said Malaysia is taking US concerns over potential misuse of the technology seriously. 'Regulating these chips under the STA 2010 shows that Malaysia is willing to align with Washington's rules. Hopefully, Washington may consider reducing the tariff by a few percentage points,' Dr Lam, the deputy head of Department of International and Strategic Studies at the University of Malaya told ST. However, senior lecturer Dr Tee Chwee Ming of Monash University Malaysia believed the restriction on AI chips is primarily aimed at preventing Malaysian companies from being blacklisted by US firms, which could disrupt the AI chip supply chain and undermine Malaysia's ambition to become a global data centre hub. Dr Tee added that to secure more favourable tariff terms, Kuala Lumpur may be expected to move away from certain domestic policies the US has cited as trade barriers – such as pro-Bumiputera preferences in government procurement and halal certification requirements – as well as to reduce the involvement of Chinese firms in its semiconductor supply chain. 'The first two are red lines for the Malaysian government, while the last is an impossible request to fulfil,' he told ST. Minister of Investment, Trade and Industry Tengku Zafrul Aziz on July 14 said Malaysia remains open to US agricultural exports, provided they meet local regulatory requirements. But areas such as 'digital commerce, government procurement, and standards related to health or technical matters' are considered red lines and are unlikely to be open to negotiation, he noted.
