16/07/2025

BIZ & FINANCE WEDNESDAY | JULY 16, 2025

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US-origin AI chip permit rule ‘sends strong signal’

Batik Air’s KL-Palembang direct service starts Sept 12

PETALING JAYA: Batik Air is launching direct flights between Kuala Lumpur and Palembang, marking another milestone in the airline’s continued expansion across Indonesia. Scheduled to commence on Sept 12, the service will strengthen air connectivity between Malaysia and Indonesia, while enhancing Kuala Lumpur International Airport’s role as a key gateway for Umrah and international travel. This new route brings Palembang, South Sumatra’s capital and one of Indonesia’s most historically significant cities, into Batik Air’s growing network, which already includes Jakarta, Bali, Batam, Surabaya, Medan, Lombok and Pekanbaru. The Kuala Lumpur–Palembang service will be operated with Batik Air’s B737-800 aircraft, offering both economy and business class cabins. Batik Air CEO Datuk Chandran Rama Muthy said Indonesia continues to be one of the strongest markets, and the airline is pleased to bring Palembang into its expanding network. “This new route reflects our ongoing efforts to connect more cities across the archipelago directly to Kuala Lumpur, offering travellers greater flexibility, convenience, and access to global destinations. Kuala Lumpur International Airport is developing into a leading hub for Umrah and international travel, and we’re proud to support this growth by adding more strategic gateways like Palembang to our network,” he added. Palembang is among the oldest cities in Southeast Asia, with a rich heritage tracing back to the Srivijaya Empire. Set along the iconic Musi River, the city is renowned for its historic Ampera Bridge, charming floating markets, traditional songket weaving, and culinary specialities. While steeped in cultural heritage, Palembang is an emerging industrial and economic centre, making it a dual purpose destination for both leisure and business travellers.

internal audits, to ensure they adhere to local and global regu lations. “We in Malaysia, both the private sector and government, take this very seriously. We want to make sure everything is fully compliant.” However, Wong said there is a need for greater clarity from the government on

high-performance AI chips would be subject to a Strategic Trade Permit under Section 12 of the Strategic Trade Act 2010, also known as the Catch-All Control Provision. Under the provision, individuals or companies are required to notify authorities at least 30 days in advance if they intend to export, transship, or transit any unlisted item that may be suspected of being misused or involved in restricted activities. Meanwhile, Pacific Research Center of Malaysia principal adviser Oh Ei Sun said the move would not affect local data centre or AI development projects, as it pertains primarily to the transshipment or export of US-made chips, not their import into Malaysia for domestic use. “I would not say Malaysia’s industry lacked transparency before this. But the US is now taking this issue very seriously, and we are acting accordingly because we value our overall relationship with the US,” he said. added. The research house noted that Malaysia exported US$16.2 billion (RM68.6 billion) worth of chips to the US in 2024, making up nearly 20% of all US semiconductor imports. “Generally, Malaysia does not fabricate these AI chips, but these chips usually enter Malaysia for testing, packaging, and assembling, and are re-exported as part of the sub-systems like AI servers or AI hardware,” it said. Hence, Public Investment Bank’s top picks are Cloudpoint Technology Bhd and MI Technovation Bhd. – Bernama state government for their part nership. The policies of the state as well as federal governments had enabled a company like ours to take root and grow internationally,” he said. Invest Kedah chief operation officer Noor Ikhsan Abdul Aziz said this public-private initiative is part of the state’s broader effort to modernise Kedah’s economy. “By empowering companies like DXN, we are enabling the creation of self-sustaining entrepreneurs and strengthening local supply chains.” The partnership also enables DXN to further strengthen its sustainable value chain. Access to local land for cultivating key ingredients such as cocoa and coffee will reduce reliance on external suppliers, improve cost efficiency, and support quality assurance. This complements DXN’s current practice of cultivating spirulina and ganoderma for its own use.

o MSIA president says Miti’s move shows Malaysia’s seriousness in complying with international trade obligations

KUALA LUMPUR: The trade permit imposed for US origin high performance artificial intelligence (AI) chips reaffirms Malaysia’s commitment as a trusted hub for managing advanced technology exports, transshipments, and transits. In stating this, Malaysia Semi conductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai ( pic ) said the measure sent a strong signal of Malaysia’s seriousness in complying with international trade obligations, including the US export controls. “The trade permit makes it

when asked to comment on the current mea sures announced

specific reporting obli gations under the strategic trade per mit. “We need to know what needs to be reported and what constitutes notification to the authorities. Once this is clear, companies can incorporate any addi tional steps needed to meet compliance,” he said. Miti on Monday an effective immediately, all exports, transshipments, and transits of US-origin that,

by the Ministry of Investment, Trade and In dustry (Miti) on Monday. He added that many Malaysian firms have already taken proactive steps, including

clear that the government will not tolerate any abuse

nounced

of exports, transship ment, or illicit trading,” Wong told Bernama PublicInvest maintains ‘overweight’ call on tech sector

KUALA LUMPUR: Public Investment Bank Bhd (PIVB) has maintained its “overweight” rating on the tech nology (tech) sector following the Ministry of Investment, Trade and Industry’s (Miti) announcement on artificial intelligence (AI) chip export control measures. On Monday, Miti imposed a trade permit requirement on all exports, transshipments and transits of high performance US-origin AI chips as part of efforts to close regulatory gaps. The new measure falls under Section 12 of the Strategic Trade Act 2010, known as the Catch-All Control

trade permits may reduce the risk of a US-imposed AI chip export ban on Malaysia and Thailand. However, it could increase compliance burden on companies handling US-origin AI chips as well as the risk of delays,” it said. Following the latest initiative, the investment bank believes there is a low risk of a US chip export restriction being imposed on Malaysia, which is positioned to become a data centre hub in Southeast Asia. “Our channel checks indicate that five multibillion-ringgit data centre contract tenders from a US-based hyperscaler are expected to be launched in the coming months,” it

Provision. It mandates individuals or companies to notify the authorities at least 30 days in advance if they intend to export, transship, or transit any item not listed in the Strategic Items List (SIL), where there is knowledge or reasonable suspicion that the item may be misused or involved in restricted activities. In a research note yesterday, PIVB views that the new restriction may help close regulatory loopholes and prevent stricter legal action from the US government, which is considering new export restrictions on AI chips to Malaysia and Thailand. “In our view, the enforcement of

DXN eyes agroforestry, aquaculture and eco-tourism initiatives in Kedah PETALING JAYA: DXN Holdings Bhd, a global manufacturer of health focused nutraceutical products, signed a memorandum of under standing (MoU) with Invest Kedah Bhd, the state’s principal investment promotion agency, to explore strategic initiatives in agroforestry, aquaculture, and eco-tourism. global reach, sets a benchmark for excellence in both governance and growth for companies in Kedah and Malaysia. “Their continued investment not only strengthens confidence in our state’s economic direction but also contributes to the momentum of our planned economic corridors. footprint. DXN’s collaboration with Invest Kedah builds on that legacy to unlock socio-economic potential through entrepreneurship and innovation, while ensuring that local communities benefit from development across sectors. It will also focus on aquaculture and island ventures, whereby the develop ment of sustainable aquaculture systems for species such as oysters, red snapper, grouper, and coral trout, including those in hatcheries on the island and in coastal zones.

The MoU will also focus on eco tourism in Langkawi, with wellness driven tourism offerings aligned with DXN’s global brand and sustainability ethos. DXN founder and executive chairman Datuk Lim Siow Jin said Kedah holds tremendous untapped potential for agro-based and tourism development. “Through this MoU, we can deepen our footprint in the state while delivering inclusive economic benefits. This reflects our philosophy of building a vertically integrated, sustainable business that grows alongside the communities it serves. “We sincerely thank the Kedah

These initiatives are expected to generate significant employment opportunities and stimulate economic activity in Kedah, with a strong emphasis on engaging local talent, contractors, and entrepreneurs. DXN will also support technology and knowledge transfer to enhance local capabilities. Under the MoU, DXN and Invest Kedah will explore high-impact opportunities through job creation and economic growth in agroforestry, focusing on the cultivation of high value crops such as coffee and mushrooms in designated forest reserve areas.

“This is the kind of business leadership that creates real impact for the people of Kedah and can form anchor partners for the Greater Kedah 2050 Vision,“ he said in a statement. DXN has deep roots in Kedah. It commenced business in Jitra in 1995 and continues to play a key role in the Company’s global operations, with approximately 90% of its production exported across 54 countries. The site is supported by a workforce of around 1,825 employees, reflecting the company’s continued investment in local talent while complementing its broader international manufacturing

The five-year MoU also supports socio-economic and talent develop ment aligned with Kedah’s long-term plans. The MoU was formalised during an official ceremony attended by the Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor, who emphasised the importance of part nerships between the state and forward-looking companies. “We welcome collaborations that align with our vision for a smart, competitive, and sustainable Kedah. “DXN, a home-grown company which began in Kedah and now has a