KLIA Customs seizes RM49.5m in AI chips with potential military uses, fifth case in RM100m syndicate probe

KLIA Customs director Aspalila Ag. Tuah said the seizure of 30 AI chip servers worth nearly RM49.5 million is the fifth case linked to the same suspected syndicate this year. — Bernama pic

First Published: Wednesday, 28 Oct 2026 4:01 PM MYT

SEPANG, Oct 28 — The Customs Department at Kuala Lumpur International Airport (KLIA) foiled an attempt to transit 30 servers containing advanced artificial intelligence (AI) chips worth nearly RM49.5 million without the required authorisation.

The chips could potentially be used in the development of military technology.

KLIA Customs director Aspalila Ag. Tuah said the seizure was made by a team from the KLIA Customs Enforcement Division following a thorough inspection of a warehouse in the KLIA Free Trade Zone on October 15 at about 11.30am.

She said preliminary investigations found that the servers had been brought in from an Asian country under a single air waybill declaring them as electronic components, allegedly to evade detection by the authorities, before being re-exported to another Asian country.

“The syndicate also used Malaysia as a transit point to ensure there were no restrictions on the export of the servers to their next destination,” she told a press conference here today.

Meanwhile, Investment, Trade and Industry Ministry (Miti) Strategic Trade Secretariat senior assistant director Masyita Ismail said the high-performance AI chips were subject to strict controls as they were classified as dual-use items.

“The Strategic Trade Act 2010 regulates dual-use items, which can be used in the development of weapons of mass destruction,” she said, adding that the brands, countries of origin and destinations of the chips could not be disclosed as investigations were ongoing.

Miti enforces Strategic Trade Controller’s Directive No. 1/2025 to regulate the export, transit and transhipment of advanced AI chips in Malaysia, with the aim of preventing the country from being used as a transit hub for high-performance chips destined for sanctioned countries.

The directive stipulates that chips with a Total Processing Performance (TPP) value of 4,800 or higher, or 1,600 or higher when combined with a Performance Density of 3.2 or higher, require a permit, which must be applied for 30 days before the chips are brought into Malaysia.

Aspalila confirmed that the seizure was the fifth case involving the same syndicate recorded by Customs this year, with the total value of seizures across all five cases exceeding RM100 million.

She said companies handling the shipments had been called in to assist investigations, but no arrests had been made so far.

All the cases are being investigated under Section 12 of the Strategic Trade Act 2010, which provides for a fine of up to RM20 million for a corporation, or a fine of up to RM10 million, imprisonment for up to 10 years, or both, for an individual convicted of an offence committed wilfully. — Bernama