US restrictions may only affect part of data centre ecosystem - Miti

Summary

• The Investment, Trade and Industry Ministry says the US plan to restrict AI and technology exports could only affect part of the data centre ecosystem.

• Deputy Minister Liew Chin Tong says only data centres that use AI chips might be affected.

• Malaysia hopes to trade with other countries to prevent dependency on the US for the semiconductor export market.

PARLIAMENT | Deputy Investment, Trade and Industry Minister Liew Chin Tong said the United States’ plan to tighten restrictions on artificial intelligence (AI) and technology exports could only affect part of the data centre ecosystem.

He told the Dewan Rakyat that the US’ Framework for AI Diffusion might only affect data centres that use AI chips, and not the other data centres that will be used for media processing and cloud storage.

“But the government does wish to create and open market access to other countries, countries in Asean, countries in Commonwealth of Independent States (CIS), countries in the Middle East, countries such as those in South America (like) Brazil, or those in Africa.

“This is the desire and also the mission of the government so that we develop and expand our market and maybe one day we won’t depend only on the semiconductor export market to the US,” he said.

Liew (above) was responding to a question from Pang Hok Liong (Harapan-Labis), who asked whether the US announcement of restrictions will affect Malaysia’s agenda to become a regional data centre destination.

Last month, outgoing US president Joseph Biden's administration introduced new regulations to control access to US-designed AI chips and technology in foreign markets.

These measures were reported to ensure unrestricted access for America’s closest allies while continuing to block exports to nations such as China, Russia, Iran, and North Korea.

Framework not yet in place

Malaysia is classified as a Tier 2 country under these regulations, which subject it to export caps.

However, Liew contended that the regulations are not yet in place as the framework is still in the public consultation stage.

"This framework was announced on Jan 13 and is currently undergoing the online public consultation process that will take 120 days.

"This means that it was announced by Biden's administration and the consultation will take time," he said.

The ministry will consult the US on the matter, he added.

He said the ministry also encourages all industry players, including US companies in Malaysia, to consult with the US administration to provide it with feedback.

COMMENT | Navigating the Trump havoc

DeepSeek, AI advancements could boost data centre demand: Gobind

Span suggests measures to address data centre issues

AI chip restrictions by US have limited impact on M'sia - RHB Investment

Stricter US regulations expected to hinder M'sia's AI ambitions

COMMENT | Future of AI in Malaysia - Part 2

Rafizi envisions 'Made by M'sia' chips, GPUs within 5-10 years