The Ministry of Investment, Trade and Industry (MITI) announced Monday that effective immediately, all exports, transships and transits of high-performance artificial intelligence (AI) chips of US origin are subject to a Strategic Trade Permit.

MITI said in a statement these powers are provided for under Section 12 of the Strategic Trade Act 2010 (STA 2010), a Catch-All Control provision which requires individuals or companies to notify the relevant authority at least 30 days before exporting, transshipping, or bringing in transit any item not expressly listed in the Strategic Items List (SIL), if the individual or company knows or have reasonable grounds to suspect the item will be misused, or used for a restricted activity.

This initiative serves to close regulatory gaps while Malaysia undertakes further review on the inclusion of high-performance AI chips of US origin into the SIL of the STA 2010.

Malaysia stands firm against any attempt to circumvent export controls or engage in illicit trade activities by any individual or company, who will face strict legal action if found violating the STA 2010 or related laws.

While Malaysia supports investments and trade aligned with international best practices as well as with multilaterally agreed commitments, all entities operating in the country are expected to comply with relevant international obligations that are applicable to their operations to avoid any secondary sanctions on their businesses.

“MITI remains committed to preserving a safe, secure, transparent, and rules-based trading environment with all its trade partners, and will not tolerate the misuse of Malaysia’s jurisdiction for illicit trading activities,” it said.

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