KUALA LUMPUR (Jan 14): Mah Sing Group Bhd (KL:MAHSING), whose stock price had declined by 12% over the past five days, said it is confident that its data centre projects will pass through the proposed US restrictions on the export of artificial intelligence (AI) chips.
Companies in Malaysia can secure validated end-user designations by adhering to US standards on security, cyber resilience, and human rights, the property developer said in a statement. Mah Sing will ensure full compliance and mitigate potential risks, it said.
Compliance would not only ensure uninterrupted access to critical technologies, but also “strengthen Malaysia’s position as a trusted partner for global technology leaders”, Mah Sing said, noting that its partner Bridge Data Centres is primarily owned by US-based Bain Capital.
On Monday, the US announced controls on advanced computing and certain AI chips, alongside new licence exceptions and updates to the data centre rules.
The rules provide exceptions for certain allies and for supply chains of the chips, as well as allow companies to obtain approvals to build data centres in select locations.
Since the beginning of the year, Mah Sing's share price has dropped by 19 sen, or 10.6%, to close at RM1.61 on Tuesday, giving the company a market capitalisation of RM4.12 billion.
Mah Sing and Bridge Data Centres have established two joint ventures for a 300-megawatt capacity data centre hub. The first phase is expected to commence operations in 2026, with the hub capable of scaling up to 500 megawatts.
The company also has 42-acre land in the Meridin East township in Johor Bahru that could be further developed to support an additional 300 megawatts of power capacity.
“Through strong collaboration among industry players, we believe Malaysia will navigate these challenges successfully, driving sustained growth and innovation in the global digital economy," Mah Sing added.