US AI Chip Export Restrictions Proposal Won't Hinder Mah Sing-BDC Collaboration

KUALA LUMPUR, Jan 14 (Bernama) -- Mah Sing Group Bhd remains confident that the proposed new restrictions on artificial intelligence (AI) chip exports by the United States (US) will not hinder collaboration with Bridge Data Centres (BDC) or the broader growth of Malaysia’s digital infrastructure sector.

In response to reports about the US-proposed AI chip export restrictions, Mah Sing emphasised that the details of these measures are still under review.

The Science, Technology and Innovation Minister Chang Lih Kang recently was quoted as saying that 85 per cent of countries fall under Tier 2, which is neither the most permissive nor the most restrictive category.

“We do not know what kind of categories and what countries are in which categories,” Chang was reported as saying.

The report said that under the new restrictions, US-based companies can apply for blanket permission to ship chips to data centres worldwide, as long as no more than 25 per cent of their total computing power is located outside of Tier 1 countries and no more than 7.0 per cent in any single Tier 2 country.

“To address these challenges and gain exemptions from imposed quotas, companies in Tier 2 countries like Malaysia have the opportunity to obtain validated end-user (VEU) designations, provided they comply with the US standards on security, cyber resilience, and human rights.

“This compliance not only ensures uninterrupted access to critical technologies but also strengthens Malaysia’s position as a trusted partner for global technology leaders,” Mah Sing said in a statement today.

Therefore, the developer said it will continue to monitor developments to ensure full compliance and mitigate potential risks.

Mah Sing’s partner, BDC, is primarily owned by Bain Capital, a US-based firm.

The group said both parties have established two joint ventures to expand their data centre hub at Mah Sing DCHub@Southville City to 300 megawatts (MW) of power capacity.

It said the first phase is slated to commence operations in 2026, with the entire hub potentially supporting a 500MW power capacity. 

Additionally, Mah Sing’s 17-hectare land at Meridin East township in Johor Bahru is strategically positioned for future development, capable of supporting an additional 300MW power capacity.

“The Malaysian technology sector has consistently demonstrated resilience and ingenuity.

“Through strong collaboration among industry players, we believe Malaysia will navigate these challenges successfully, driving sustained growth and innovation in the global digital economy,” it noted.

-- BERNAMA