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Malaysia examines legal options to prevent restricted GPU re-exports

The government wants chips imported for Malaysian data centres to be used locally rather than shipped onwards, Johari Abdul Ghani said.

By Maya Santos

Rows of server cabinets inside a data centre
Photo: New Straits Times

Malaysia's Investment, Trade and Industry Ministry (Miti) is checking whether current legislation can be used against companies routing restricted graphics processing unit (GPU) chips through the country for re-export, minister Datuk Seri Johari Abdul Ghani said.

Johari said Malaysia lacked a specific law barring these chip movements. US export restrictions had prompted the reassessment, with the government seeking to ensure that chips entering Malaysia were deployed domestically for the purposes declared by importers.

Addressing reporters after launching the MySaham Miti application, he described concerns that businesses might bring GPUs into Malaysia ostensibly for local data centres, then send them overseas without using them. Officials were considering whether existing legislation offered a basis for action against those involved, he said.

Johari said exporters, particularly US suppliers, needed accurate shipping documents naming the recipients and destinations. Malaysian authorities could help exporters verify which data centre would use a shipment and where that facility was located, he added.

Reporters also asked about possible investigations involving Malaysia's Speedmatrix Sdn Bhd and Singapore-based Megaspeed International and their data centre operations. Johari said wrongdoing or regulatory violations would have to be established before action could follow. He saw no legal grounds to act if the companies bought GPUs for their own facilities, but said any restrictions governing re-exports needed to be addressed.

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