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Economic Times
2 hours ago
- Business
- Economic Times
Malaysia controls AI chip exports as US targets China smuggling
Synopsis Companies must notify Kuala Lumpur 30 days before exporting, especially if misuse is suspected. TIL Creatives Malaysian authorities said in March that they would tighten regulations on the country's burgeoning data center industry, which relies on chips from the likes of Nvidia Corp. Malaysia will now require permits for exports of high-performance US artificial intelligence chips, suggesting the government is seeking to clamp down on potential diversion of the sensitive components to places like 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 Monday. 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 center industry, which relies on chips from the likes of Nvidia Corp. 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. 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 Corp. are massively expanding their data center 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 licenses to ship AI chips to Malaysia and many other 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 has reported. That rule is not yet finalized and could still change. Nvidia Chief Executive Officer 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 ministry — which, like many others in Asia, is currently hammering out a trade deal with US officials — added that 'all matters related to Malaysia-US bilateral trade are interlinked, each having its own unique role in the current trade negotiations.'
Time of India
3 hours ago
- Business
- Time of India
Malaysia controls AI chip exports as US targets China smuggling
Malaysia will now require permits for exports of high-performance US artificial intelligence 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 Monday. 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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An engineer reveals: One simple trick to get internet without a subscription Techno Mag Learn More Undo Malaysian authorities said in March that they would tighten regulations on the country's burgeoning data center industry, which relies on chips from the likes of Nvidia Corp. 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. The ministry did not immediately respond to questions about whether the controls came at Washington's urging. Live Events Bloomberg Malaysian authorities said in March that they would tighten regulations on the country's burgeoning data center industry, which relies on chips from the likes of Nvidia Corp. 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 Corp. are massively expanding their data center 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 licenses to ship AI chips to Malaysia and many other countries. 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 has reported. That rule is not yet finalized and could still change. Nvidia Chief Executive Officer 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 ministry — which, like many others in Asia, is currently hammering out a trade deal with US officials — added that 'all matters related to Malaysia-US bilateral trade are interlinked, each having its own unique role in the current trade negotiations.'
New Straits Times
a day ago
- Business
- New Straits Times
Malaysia intensifies talks with US on tariffs, non-tariff barriers
KUALA LUMPUR: Malaysia is ramping up discussions with the United States (US) on the 25 per cent tariff, as it seeks to resolve key tariff and non-tariff issues ahead of a looming Aug 1 deadline. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the ministry had a productive engagement with the US Trade Representative last week and is now working to identify areas where both parties can reach an agreement. "I have set a deadline for the team and the US has set a deadline on Aug 1. We will try and go through even before that if we can. But again, there are issues that we still need time because it involves many agencies and ministries. "We are doing the calculations as well. What is the impact to our export if we agree to certain terms? What is the impact on our revenue? That is ongoing. "We will continue to have another discussion this week," he said at a press conference held in conjunction with the ministry's second quarter 2025 Performance Report Card announcement. Tengku Zafrul acknowledged that Malaysia, like many other countries, is finding it challenging to meet the earlier deadline that was set. Nevertheless, he said the ministry will work towards meeting the new Aug 1 deadline, but not at the cost of agreeing to all demands, particularly those that may be unfavourable to Malaysia. While there are no new terms proposed by the US, the minister noted ongoing concerns over non-tariff issues. He said Malaysia has addressed one such concern by updating the Strategic Trade Act to include a new item on the controlled list. "On the issues where we cannot move, which is the red line, again, I have signed a non-disclosure agreement, but I can share with you. Some of the issues are related to equity interests. "In certain sectors, Malaysia has equity restrictions for foreign shareholders for certain sectors, there is a request for us to relook or liberalise those sectors. "For us, we need to consult those industries, whether we are ready to liberalise those equity maximum shareholding restrictions," he added. He said that while certain sectors have been fully liberalised, others still maintain foreign equity limits and any decision to review these restrictions must be carefully studied to assess the potential impact.
Malaysian Reserve
a day ago
- Business
- Malaysian Reserve
Malaysia controls AI chip exports as US targets China smuggling
MALAYSIA will now require permits for exports of high-performance US artificial intelligence 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 Monday. 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 center industry, which relies on chips from the likes of Nvidia Corp. 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. 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 Corp. are massively expanding their data center 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 licenses to ship AI chips to Malaysia and many other countries. 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 has reported. That rule is not yet finalized and could still change. Nvidia Chief Executive Officer 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. The ministry — which, like many others in Asia, is currently hammering out a trade deal with US officials — added that 'all matters related to Malaysia-US bilateral trade are interlinked, each having its own unique role in the current trade negotiations.' –BLOOMBERG
Japan Times
2 days ago
- Business
- Japan Times
Malaysia controls AI chip exports as U.S. targets China smuggling
Malaysia will now require permits for exports of high-performance U.S. artificial intelligence 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 Monday. 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 center 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. 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 center footprints in the country, which saw an increase in imports of crucial components this year — particularly in April, the month before the U.S. was expected to start requiring licenses to ship AI chips to Malaysia and many other countries. U.S. 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 has reported. That rule is not yet finalized and could still change. Nvidia Chief Executive Officer 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 U.S. curbs, Malaysia's trade ministry said that it welcomes dialogue with the U.S. and other nations to "clarify any misunderstandings,' while also warning that unilateral restrictions could disrupt legitimate trade and hamper innovation. The ministry — which, like many others in Asia, is currently hammering out a trade deal with U.S. officials — added that "all matters related to Malaysia-U.S. bilateral trade are interlinked, each having its own unique role in the current trade negotiations.'
