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.
