Effective immediately, Malaysia will require all exports, transhipments, and transit of high-performance artificial intelligence (AI) chips originating from the United States to obtain a Strategic Trade Permit under the Strategic Trade Act 2010 (STA 2010).
The Ministry of Investment, Trade and Industry (MITI) announced on Monday (July 14) that this move comes under the “catch-all control” clause in Section 12 of the STA, which mandates individuals or companies to notify authorities at least 30 days in advance if they are aware, or have reason to suspect, that any item may be misused or used for prohibited activities — even if that item is not listed in the Strategic Items List (SIL).
MITI stated that the measure is being introduced to close existing regulatory loopholes as the government continues reviewing whether AI chips should be formally added to the SIL.
“Malaysia stands firm against any attempt to circumvent export controls or engage in illicit trade activities,” the ministry stressed, adding that strict legal action will be taken against violators of the STA or related laws.
While the government continues to support trade and foreign investment in line with international norms, MITI also warned that all companies operating in Malaysia must comply with global obligations to avoid potential secondary sanctions.
The ministry reaffirmed its commitment to maintaining a secure, transparent, and rules-based trade environment, underscoring that Malaysia will not allow its jurisdiction to be misused for any illicit trade involving sensitive technology.
