Malaysia may encounter challenges in advancing its artificial intelligence (AI) data centre industry due to U.S. export restrictions on AI chips, according to Deputy Investment, Trade, and Industry Minister Liew Chin Tong.
During a Dewan Rakyat question-and-answer session, Liew stated that while these restrictions could impact AI-driven data centres, they are not expected to hinder the overall growth of Malaysia’s data centre ecosystem.
Under the revised U.S. regulations, Malaysia has been designated as a Tier 2 country for AI chip exports, alongside Singapore, Indonesia, and Vietnam. This classification places certain controls on access to advanced AI technologies.
However, Liew noted that other data centre operations, including those supporting transaction services, e-commerce, and data storage, are not reliant on AI-specific chips and will not be affected by the restrictions.
In response to concerns about Malaysia’s positioning as a regional data hub, Liew emphasized that the country aims to diversify its semiconductor market access by expanding trade opportunities in ASEAN, the Middle East, and South America.
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