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Malaysia imposes restrictions on exports of AI American chips

(MENAFN) Malaysia has introduced new restrictions on the export, transshipment, and transit of advanced artificial intelligence (AI) chips manufactured in the United States, according to reports from local media on Monday.

Effective immediately, any such movement of US-origin AI chips now requires a Strategic Trade Permit, as outlined by the Strategic Trade Act 2010, the Ministry of Investment, Trade and Industry (MITI) confirmed.

“Malaysia will not tolerate the misuse of its jurisdiction for illicit trading activities,” the ministry stated. It emphasized the government’s ongoing commitment to maintaining “a safe, secure, transparent and rules-based trading environment with all its trade partners,” including the United States.

The policy shift follows recent reports that the US is preparing to impose tighter restrictions on AI chip shipments to Malaysia. This move is part of Washington’s broader effort to prevent American semiconductors from being rerouted to China through third countries.

While Malaysia had previously pledged to strengthen oversight of high-tech imports, a sharp rise in chip exports to the country has attracted US scrutiny. Proposed American measures may include limited exemptions for US and allied companies that operate within Malaysia.

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