US AI Chip Restrictions Unlikely to Impact Malaysia’s Data Centres

January 25, 2025
January 25, 2025

KUALA LUMPUR: Malaysia’s Tier 2 classification under the United States’ new artificial intelligence (AI) chip export restrictions is expected to have minimal impact on existing data centres, according to Deputy Investment, Trade and Industry Minister Liew Chin Tong.

Speaking at the Rehda Institute’s CEO Series 2025, Liew said, “As far as we understand, it has no impact on existing data centres. Future implications will depend on discussions with the incoming US administration.”

The US directive categorizes nations into three tiers, with Tier 1 countries enjoying unrestricted chip access, Tier 2 facing certain limitations, and Tier 3 nations barred entirely. Liew noted Malaysia would work with internal stakeholders to address these restrictions.

He also highlighted the need for industrial parks to prioritize local talent retention and affordable housing for engineers, urging a shift away from reliance on foreign workers. The conference explored Malaysia’s economic outlook and the role of digital disruption.

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