Malaysian Customs Seizes AI Servers Worth RM52.9 Million, Foils Meth-Laced Vape Smuggling at KLIA
SEPANG: Malaysian customs authorities have dismantled two major smuggling operations involving advanced artificial intelligence servers and methamphetamine-laced vape cartridges, with the combined value of the seizures reaching approximately RM54.11 million.
The Royal Malaysian Customs Department (JKDM) said the larger operation involved the interception of 72 computer servers containing advanced AI chips with an estimated value of RM52.92 million at the Kuala Lumpur International Airport (KLIA) Free Commercial Zone.
According to KLIA Customs director Zulkifli Muhammad, enforcement officers carried out an inspection at a warehouse on June 5 following intelligence indicating suspicious transit cargo moving through Malaysia.
Investigators discovered that the shipment had originated from an Asian country and was intended for re-export to another destination within the region using Malaysia as a transit hub.
Preliminary investigations indicate that the shipment was declared simply as ordinary computer hardware despite allegedly containing strategic technology subject to regulatory controls under Malaysia’s Strategic Trade Act 2010.
Authorities believe the declaration was intended to avoid attracting attention from enforcement agencies during customs clearance.
One local freight forwarding agent has since been detained to assist investigators, while the logistics company involved in handling the shipment has also been instructed to provide statements.
Zulkifli reminded importers and exporters that advanced AI chips classified under strategic trade regulations cannot be transported through Malaysia without prior notification to the Strategic Trade Secretariat.
Applications involving strategic items must be submitted at least 30 days before shipment, after which the relevant permits may be issued subject to regulatory approval.
The case is being investigated under Section 12 of the Strategic Trade Act 2010, which provides penalties of up to RM10 million in fines or imprisonment of up to ten years for individuals found guilty of intentionally violating the law.
Companies convicted under the same legislation may face fines reaching RM20 million.
In a separate enforcement operation conducted on June 10, customs officers intercepted 4,760 vape cartridges suspected of containing methamphetamine with an estimated value of RM1.19 million.
The seizure took place at the Ground Team Red (GTR) facility within KLIA’s Free Commercial Zone after officers examined six packages wrapped in black plastic.
Investigators found that the vape cartridges had been concealed inside desktop computer CPU casings while being falsely declared as computer spare parts.
Authorities believe the shipment was intended for export to a neighbouring country via air cargo services.
Three Malaysian nationals linked to the logistics company involved have been called in to assist investigators.
The narcotics case is being investigated under Section 39B(1)(a) of the Dangerous Drugs Act 1952, one of Malaysia’s most serious drug trafficking provisions.
Customs officials said the two cases highlight increasingly sophisticated concealment methods employed by organised criminal syndicates attempting to exploit Malaysia’s international logistics infrastructure.
The department reaffirmed its commitment to strengthening intelligence gathering, cargo screening and inter-agency cooperation to prevent Malaysia from being used as a transit point for strategic technology diversion and international drug trafficking activities.
Officials added that surveillance of high-risk cargo shipments will continue to be intensified as part of broader efforts to safeguard national security and protect the integrity of Malaysia’s international trade system.
