“Malaysia may face challenges in AI data centre development due to US chip export restrictions, but overall operations remain unaffected, says Deputy Minister Liew Chin Tong..“
Kuala Lumpur, 19th Feb 2025, 01.40pm – Malaysia’s development of artificial intelligence (AI) data centres may face challenges due to the recent US restrictions on AI chip exports, said Deputy Investment, Trade and Industry Minister Liew Chin Tong.
However, Liew assured that these restrictions would not impact the country’s overall data centre ecosystem. He explained that Malaysia, along with Singapore, Indonesia, and Vietnam, falls under the Tier 2 category, meaning it has limited and controlled access to advanced AI technology exports.
“This restriction does not affect data centres that provide transaction processing, e-commerce, or data storage services, as they do not require AI chips or advanced AI technology,” he said during a Dewan Rakyat session on Wednesday.
Liew was responding to a question from Pang Hok Liong (PH-Labis) regarding Malaysia’s position as a regional data centre hub following the US directive categorising Malaysia as a Tier 2 country for AI chip exports.
To counter potential setbacks, Liew said the government aims to expand market access for semiconductor products to other regions, including ASEAN, the Middle East, and South America.
