Malaysia’s data centres unaffected by US AI chip export restrictions, says deputy Miti minister
Liew Chin Tong said the Malaysian government will take a cautious, evaluative stance to better understand how these proposed restrictions might influence future developments and partnerships.
KUALA LUMPUR (Jan 16): The potential implementation of export limitations by the US government on artificial intelligence (AI) chips is not expected to impact the operations of existing data centres in Malaysia, according to deputy minister of investment, trade and industry (Miti) Liew Chin Tong. (pictured)
After his keynote speech at the CEO Series: Economy & Business Forum on Thursday, Liew said the Malaysian government will take a cautious, evaluative stance to better understand how these proposed restrictions might influence future developments and partnerships.
“We will engage in internal discussions, collaborate with key stakeholders, and also reach out to the incoming US administration to gain a clearer understanding of the extent of the regulatory changes,” he said.
Liew added that Malaysia, along with other countries classified under Tier 2, has prepared strategies to manage the potential challenges.
Under these proposed restrictions, the American companies would be permitted to request blanket approval for shipping chips to data centres globally, with stipulations that no more than 25% of their total computational capacity is located outside of Tier 1 nations, and no more than 7% is situated in any single Tier 2 country.
Meanwhile, Liew highlighted the importance of Malaysia fortifying its internal economic infrastructure to foster mutual benefits for both local and foreign investors, noting that many of Malaysia’s industrial parks have become overly concentrated on real estate development, which fails to advance the nation’s broader economic objectives.
“As the global supply chain has shifted over recent years, it is clear that investors are drawn to Malaysia not simply because of our numerous industrial parks, but because of the strength and depth of our ecosystem,” Liew explained.
He added that while factories may be interconnected on a global scale, they often lack sufficient domestic linkages.
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