MIDF Amanah Investment Bank Bhd said in a research note today that Malaysia’s newly announced controls on US-origin high-performance AI chips will not impact local data centres.
The Ministry of Investment, Trade and Industry (MITI) recently directed that all exports, transshipments and transits of such AI chips must obtain a Strategic Trade Permit (STP).
According to MIDF, these rules only apply if data centre operators intend to move the chips out of Malaysia.
“There is zero impact from this directive on data centres in Malaysia. It does not add any red tape nor delay the process of setting up data centres,” the report said.
MIDF noted that most new data centres are AI-ready, even if some may later serve non-AI purposes.
It added that the directive primarily targets preventing suspected smuggling of chips into China, demonstrating Malaysia’s commitment to responsible export control.
Negotiations with the US, MIDF said, are likely to focus on regulatory enforcement, end-user monitoring, and strict compliance. MITI’s directive aligns with these priorities and could help ease US concerns under Trump’s revamped AI Diffusion Rule.
Speculation also points to a possible shift from a three-tier country system to a licensing regime based on government-to-government agreements, potentially lifting the current 7% AI computing power limit for countries like Malaysia.
“Regardless of policy shifts, the core aim remains to contain China’s AI advancement and ensure US AI chips are not used to train Chinese AI models,” MIDF said.
