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Malaysia enforces trade controls on AI chips with US origin

Malaysia’s trade ministry announced new restrictions on the export, transshipment and transit of high-performance AI chips of US origin. Effective immediately, individuals and companies must obtain a trade permit and notify authorities at least 30 days in advance for such activities.

The restrictions apply to items not explicitly listed in Malaysia’s strategic items list, which is currently under review to include relevant AI chips. The move aims to close regulatory gaps while Malaysia updates its export control framework to match emerging technologies.

‘Malaysia stands firm against any attempt to circumvent export controls or engage in illicit trade activities,’ the ministry stated on Monday. Violations will result in strict legal action, with authorities emphasising a zero-tolerance approach to export control breaches.

The announcement follows increasing pressure from the United States to curb the flow of advanced chips to China. In March, the Financial Times reported that Washington had asked allies including Malaysia to tighten semiconductor export rules.

Malaysia is also investigating a shipment of servers linked to a Singapore-based fraud case that may have included restricted AI chips. Authorities are assessing whether local laws were breached and whether any controlled items were transferred without proper authorisation.

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Meta under pressure after small business loses thousands

A New Orleans bar owner lost $10,000 after cyber criminals hijacked her Facebook business account, highlighting the growing threat of online scams targeting small businesses. Despite efforts to recover the account, the company was locked out for weeks, disrupting sales.

The US-based scam involved a fake Meta support message that tricked the owner into giving hackers access to her page. Once inside, the attackers began running ads and draining funds from the business account linked to the platform.

Cyber fraud like this is increasingly common as small businesses rely more on social media to reach their customers. The incident has renewed calls for tech giants like Meta to implement stronger user protections and improve support for scam victims.

Meta says it has systems to detect and remove fraudulent activity, but did not respond directly to this case. Experts argue that current protections are insufficient, especially for small firms with fewer resources and little recourse after attacks.

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Report shows China outpacing the US and EU in AI research

AI is increasingly viewed as a strategic asset rather than a technological development, and new research suggests China is now leading the global AI race.

A report titled ‘DeepSeek and the New Geopolitics of AI: China’s ascent to research pre-eminence in AI’, authored by Daniel Hook, CEO of Digital Science, highlights how China’s AI research output has grown to surpass that of the US, the EU and the UK combined.

According to data from Dimensions, a primary global research database, China now accounts for over 40% of worldwide citation attention in AI-related studies. Instead of focusing solely on academic output, the report points to China’s dominance in AI-related patents.

In some indicators, China is outpacing the US tenfold in patent filings and company-affiliated research, signalling its capacity to convert academic work into tangible innovation.

Hook’s analysis covers AI research trends from 2000 to 2024, showing global AI publication volumes rising from just under 10,000 papers in 2000 to 60,000 in 2024.

However, China’s influence has steadily expanded since 2018, while the EU and the US have seen relative declines. The UK has largely maintained its position.

Clarivate, another analytics firm, reported similar findings, noting nearly 900,000 AI research papers produced in China in 2024, triple the figure from 2015.

Hook notes that governments increasingly view AI alongside energy or military power as a matter of national security. Instead of treating AI as a neutral technology, there is growing awareness that a lack of AI capability could have serious economic, political and social consequences.

The report suggests that understanding AI’s geopolitical implications has become essential for national policy.

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Qantas hacked as airline cyber threats escalate

Qantas Airways has confirmed that personal data from 5.7 million customers was stolen in a recent cyberattack, including names, contact details and meal preferences. The airline stated that no financial or login credentials were accessed, and frequent flyer accounts remain secure.

An internal investigation found the data breach involved various levels of personal information, with 2.8 million passengers affected most severely. Meal preferences were the least common data stolen, while over a million customers lost addresses or birth dates.

Qantas has contacted affected passengers and says it offers support while monitoring the situation with cybersecurity experts. Under pressure to manage the crisis effectively, CEO Vanessa Hudson assured the public that extra security steps had been taken.

The breach is the latest in a wave of attacks targeting airlines, with the FBI warning that the hacking group Scattered Spider may be responsible. Similar incidents have recently affected carriers in the US and Canada.

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M&S still rebuilding after April cyber incident

Marks & Spencer has revealed that the major cyberattack it suffered in April stemmed from a sophisticated impersonation of a third-party user.

The breach began on 17 April and was detected two days later, sparking weeks of disruption and a crisis response effort described as ‘traumatic’ by Chairman Archie Norman.

The retailer estimates the incident will cost it £300 million in operating profit and says it remains in rebuild mode, although customer services are expected to normalise by month-end.

Norman confirmed M&S is working with UK and US authorities, including the National Crime Agency, the National Cyber Security Centre, and the FBI.

While the ransomware group DragonForce has claimed responsibility, Norman declined to comment on whether any ransom was paid. He said such matters were better left to law enforcement and not in the public interest to discuss further.

The company expects to recover some of its losses through insurance, although the process may take up to 18 months. Other UK retailers, including Co-op and Harrods, were also targeted in similar attacks around the same time, reportedly using impersonation tactics to bypass internal security systems.

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Cyber defence effort returns to US ports post-pandemic

The US Cybersecurity and Infrastructure Security Agency (CISA) has resumed its seaport cybersecurity exercise programme. Initially paused due to the pandemic and other delays, the initiative is now returning to ports such as Savannah, Charleston, Wilmington and potentially Tampa.

These proof-of-concept tabletop exercises are intended to help ports prepare for cyber threats by developing a flexible, replicable framework. Each port functions uniquely, yet common infrastructure and shared vulnerabilities make standardised preparation critical for effective crisis response.

CISA warns that threats targeting ports have grown more severe, with nation states exploiting AI-powered techniques. Some US ports, including Houston, have already fended off cyberattacks, and Chinese-made systems dominate critical logistics, raising national security concerns.

Private ownership of most port infrastructure demands strong public-private partnerships to maintain cybersecurity. CISA aims to offer a shared model that ports across the country can adapt to improve cooperation, resilience, and threat awareness.

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AI-powered imposter poses as US Secretary of State Rubio

An imposter posing as US Secretary of State Marco Rubio used an AI-generated voice and text messages to contact high-ranking officials, including foreign ministers, a senator, and a state governor.

The messages, sent through SMS and the encrypted app Signal, triggered an internal warning across the US State Department, according to a classified cable dated 3 July.

The individual created a fake Signal account using the name ‘Marco.Rubio@state.gov’ and began contacting targets in mid-June.

At least two received AI-generated voicemails, while others were encouraged to continue the chat via Signal. US officials said the aim was likely to gain access to sensitive information or compromise official accounts.

The State Department confirmed it is investigating the breach and has urged all embassies and consulates to remain alert. While no direct cyber threat was found, the department warned that shared information could still be exposed if targets were deceived.

A spokesperson declined to provide further details for security reasons.

The incident appears linked to a broader wave of AI-driven disinformation. A second operation, possibly tied to Russian actors, reportedly targeted Gmail accounts of journalists and former officials.

The FBI has warned of rising cases of ‘smishing’ and ‘vishing’ involving AI-generated content.

Experts now warn that deepfakes are becoming harder to detect, as the technology advances faster than defences.

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OpenAI locks down operations after DeepSeek model concerns

OpenAI has significantly tightened its internal security following reports that DeepSeek may have replicated its models. DeepSeek allegedly used distillation techniques to launch a competing product earlier this year, prompting a swift response.

OpenAI has introduced strict access protocols to prevent information leaks, including fingerprint scans, offline servers, and a policy restricting internet use without approval. Sensitive projects such as its AI o1 model are now discussed only by approved staff within designated areas.

The company has also boosted cybersecurity staffing and reinforced its data centre defences. Confidential development information is now shielded through ‘information tenting’.

These actions coincide with OpenAI’s $30 billion deal with Oracle to lease 4.5 gigawatts of data centre capacity across the United States. The partnership plays a central role in OpenAI’s growing Stargate infrastructure strategy.

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Groq opens AI data centre in Helsinki

Groq has opened its first European AI data centre in Helsinki, Finland, in collaboration with Equinix. The facility offers European users fast, secure, and low-latency AI inference services, aiming to improve performance and data governance.

The launch follows Groq’s existing partnership with Equinix, which already includes a site in Dallas. The new centre complements Groq’s global network, including facilities in the US, Canada and Saudi Arabia.

CEO Jonathan Ross stated the centre provides immediate infrastructure for developers building fast at scale. Equinix highlighted Finland’s reliable power and sustainable energy as key factors in the decision to host capacity there.

The data centre supports GroqCloud, delivering over 20 million tokens per second across its network. European businesses are expected to benefit from improved AI performance and operational efficiency.

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US targets Southeast Asia to stop AI chip leaks to China

The US is preparing stricter export controls on high-end Nvidia AI chips destined for Malaysia and Thailand, in a move to block China’s indirect access to advanced GPU hardware.

According to sources cited by Bloomberg, the new restrictions would require exporters to obtain licences before sending AI processors to either country.

The change follows reports that Chinese engineers have hand-carried data to Malaysia for AI training after Singapore began restricting chip re-exports.

Washington suspects Chinese firms are using Southeast Asian intermediaries, including shell companies, to bypass existing export bans on AI chips like Nvidia’s H100.

Although some easing has occurred between the US and China in areas such as ethane and engine components, Washington remains committed to its broader decoupling strategy. The proposed measures will reportedly include safeguards to prevent regional supply chain disruption.

Malaysia’s Trade Minister confirmed earlier this year that the US had requested detailed monitoring of all Nvidia chip shipments into the country.

As the global race for AI dominance intensifies, Washington appears determined to tighten enforcement and limit Beijing’s access to advanced computing power.

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