The Customs Department has foiled an attempt to use Malaysia as a transit point for advanced artificial intelligence chips worth RM49.5 million, with the shipment bound for another Asian country.
Thirty server units carrying the chips were seized from a warehouse inside the KLIA Free Commercial Zone at about 11.30am on 15 Oct, KLIA Customs director Aspalila AG Tuah said at a press conference in Sepang, as NST reported.
Preliminary checks showed the servers arrived from an Asian country the department did not name, travelling under a single air waybill and declared as ordinary electronic components.
“The syndicate also used Malaysia as a transit point to ensure there would be no restrictions when exporting the servers to their next destination,” Aspalila said.
The servers were valued at RM45 million, with estimated taxes of RM4.5 million, bringing the total seizure value to RM49.5 million. It was the fifth case involving advanced AI chips recorded this year, and the combined value of all five has passed RM100 million. Investigators believe one syndicate is behind them.
The chips are also believed to be capable of supporting technology linked to weapons development. Masyita Ismail, a senior assistant director at the Investment, Trade and Industry Ministry’s Strategic Trade Secretariat, said the components are classified as dual-use items, according to FMT.
“The Strategic Trade Act 2010 regulates dual-use items, which can be used in the development of weapons of mass destruction,” she said. The brands, origin and destination of the chips have been withheld while investigations continue.
Under Strategic Trade Controller Directive No. 1/2025, issued by the ministry’s Strategic Trade Secretariat, chips meeting a total processing performance value of 4,800 or higher, or 1,600 or higher alongside a performance density of 3.2 or above, need a permit. Companies planning to export, transship or transit such chips must notify the secretariat at least 30 days in advance when they know, or have reasonable grounds to suspect, that the goods could be used for restricted activities. Approval is also required before applying for a strategic trade permit.
Aspalila said preliminary investigations indicate the servers fall under controls covering unlisted items and restricted activities in the Strategic Trade Act. All 30 units have been held for inspection, and the freight forwarding company that handled the shipment has been called in to assist.
No arrests have been made so far. The cases are being investigated under Section 12 of the Strategic Trade Act 2010, which carries a fine of up to RM20 million for a corporation, or a fine of up to RM10 million, up to 10 years’ jail, or both, for an individual convicted of a wilful offence.
