Malaysia Reviews Laws to Block GPU Re-Export Transits: Miti

Malaysia's Ministry of Investment, Trade and Industry (Miti) is reviewing existing laws to stop the country from serving as a transit point for re-exporting restricted graphics processing unit (GPU) chips, local media NST Online reported on Thursday.

Trade and Industry Minister Johari Abdul Ghani said Malaysia currently has no specific legislation prohibiting the movement of such shipments. He said the government wants to ensure imported GPUs are used for their declared purposes inside the country.

The review follows US export restrictions, which require greater scrutiny over how advanced semiconductor chips move and where they end up.

What did the minister say?

Speaking to reporters at an event in Kuala Lumpur, Johari was direct about the legal gap.

"We don't have a specific law to stop any chip movement. But this is the thing that I want to make sure of, because last time, there was no restriction," he said.

"But now when the US imposes a restriction, as a country, we want to make sure that whatever chip arrives here is meant for our own use, for our own data center."

His concern is concrete: companies could import GPUs into Malaysia claiming they will power local data centers, then re-export the chips without ever deploying them.

"When the GPU arrives here, then they re-export. So that part now, the US deems it illegal to get that chip. So as a country, we want to make sure that such activity cannot take place in our country," he was quoted as saying.

How would enforcement work?

Johari said the government is examining whether existing laws can be applied against parties involved in such transactions. Officials are reassessing GPU chip movements following the US export restrictions, according to the minister.

This isn't Malaysia's first move on the issue. The country introduced export controls last year on the movement of US-origin high-performance AI chips, after pressure from Washington to curb the flow of such chips to China, according to earlier reports.

Why is this surfacing now?

The timing matters. Johari's remarks came amid media reports of an alleged affair involving NVIDIA CEO Jensen Huang and a woman accused of helping entities circumvent US export restrictions on high-performance chips to China.

Huang reportedly acknowledged the affair, and NVIDIA has launched an internal investigation in response. The reports have renewed scrutiny of whether Malaysia is being used as a transit point to bypass Washington's restrictions on exporting advanced AI chips to China.

For Malaysia, the stakes are twofold. The country wants to keep attracting data center investment and legitimate GPU imports for its own digital infrastructure. At the same time, it faces US pressure to prove those chips stay put.

Until Miti decides which existing laws can be applied — or drafts new ones — the legal gap Johari described remains open. How quickly Kuala Lumpur closes it will shape both its standing with Washington and its pitch to chip-dependent investors.