RM50 Million AI Chip Servers Seized In KLIA Smuggling Bust

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The Royal Malaysian Customs Department (JKDM) at Kuala Lumpur International Airport (KLIA) has successfully foiled two high-profile smuggling attempts involving 72 units of servers containing advanced AI chips and an attempted export of vape liquid believed to contain methamphetamine, with the total seizures valued at RM54.11 million.

KLIA JKDM director Zulkifli Muhammad said the success came from several enforcement operations carried out throughout June at the KLIA Free Commercial Zone.

He said the largest seizure involved 72 server units fitted with advanced AI chips, valued at RM50.4 million, with estimated taxes of RM2.52 million, bringing the total value close to RM53 million.

On June 5, enforcement officers inspected a warehouse in the free zone and discovered the servers, which had been imported from an Asian country under a single Air Waybill.

Initial investigations suggest the servers were intended for re-export to another Asian country and were seized for further probe.

Authorities believe the equipment falls under controlled trade items under the Strategic Trade Act 2010 due to the high-end artificial intelligence chips embedded within the servers.

The syndicate is believed to have misdeclared the goods as “computer components” to evade detection and used Malaysia as a transit hub before shipping them to their final destination.

The case is being investigated under Section 12 of the Strategic Trade Act 2010, which carries penalties of up to RM10 million fine, a maximum of 10 years’ imprisonment, or both.

In a separate case, JKDM KLIA also seized 4,760 vape cartridges valued at RM1.19 million, suspected to contain methamphetamine.

The seizure took place on June 10 after enforcement officers inspected six black-wrapped boxes at the Ground Team Red facility in the KLIA Free Commercial Zone, which had been declared as “CPU spare parts” for export to a neighbouring country.

Further inspection revealed the vape cartridges were hidden inside CPU casings in an attempt to evade detection, with early tests indicating the presence of methamphetamine.

The case is being investigated under Section 39B(1)(a) of the Dangerous Drugs Act 1952, which carries the death penalty or life imprisonment and at least 12 strokes of the cane upon conviction.

JKDM said it will continue to strengthen border controls to curb smuggling activities that cause revenue loss and threaten national security.

The department also urged the public to provide information on smuggling activities via the Customs toll-free hotline or nearby offices, assuring that informants’ identities will be kept confidential.

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