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Tuesday, 4 February 2025

Brain food

 
A look at the foods that keep our brains healthy and thriving and the foods that do the opposite.


New expert advice recommends eating fish twice a week to help prevent heart disease

FOR many decades, the prevailing belief was that the number of cells in the adult human brain was static, incapable of producing new neurons after adulthood.

However, research has established that this is not true, at least in an important part of the brain called the hippocampus. Studies since the 1960s have established that several mammals can regenerate neurons in this region throughout their lives. There had since then been considerable research into the same phenomenon in human brains, with inconclusive outcomes. Finally, plausible evidence that adult human brains can also regenerate and renew hippocampal cells was collated in a detailed 2021 Spanish review, “Evidences for Adult Hippocampal Neurogenesis in Humans”.

Moreover, it appears that this process, known as “neurogenesis”, plays a crucial role in human learning, memory, and overall cognitive function throughout all our lives. While the generation of new neurons in the adult human hippocampus occurs at a significantly reduced rate compared to infancy and childhood, these nascent cells still play a critical role in maintaining mental well-being, underpinning the hippocampus’s vital function in memory consolidation and cognitive function.

Brain-friendly diet

It is no surprise to learn that the foods we consume can either enhance or hinder neurogenesis. Adopting informed dietary choices can empower our brains to function at their best and potentially stave off cognitive decline as we age. And these informed choices are often simple, delicious, and effective.

The best foods to promote neurogenesis are those which provide the chemical building blocks and support systems necessary for robust neurogenesis. Usefully, they are often also the most highly recommended foods to eat for optimal general health.

Omega-3 fatty acids

These healthy fats are abundant in oily fishes like salmon, mackerel, sardines, and also in certain algae, walnuts, flaxseeds, leafy greens, etc. Omega-3 plays a critical role in brain health by improving the fluidity of brain cell membranes, allowing for better communication between neurons. Importantly, they also boost the production of BDNF (Brainderived

Neurotrophic Factor), a special protein essential for neuronal augmentation, survival, differentiation, morphogenesis (development of form and structure in cells), and synaptic plasticity (improved function and linkage stability).

Omega-3 fatty acids are divided into short-chain and long-chain acids. The short-chain acid is known as Alpha-linolenic Acid, contains 18 carbon atoms and is mostly found in seeds and plants. The long-chain versions are usually derived from oily fishes and includes Eicosapentaenoic Acid which contains 20 carbon atoms, and Docosahexaenoic Acid (DHA) which contains 22 carbon atoms.

Of particular interest to neurogenesis are the long-chain DHA molecules, which activate the expression of genes related to BDNF production. These genes then activate molecules such as the CREB (Cyclic-amp Response Element-binding) protein in the brain. The activation of CREB by BDNF not only supports neurogenesis but also enhances further BDNF expression itself, creating a positive feedback loop that reinforces neuronal growth and plasticity.

DHA also provokes other required signalling pathways required for BDNF production. DHA and other omega-3 acids then assist in regulating BDNF production in several interesting ways too complex to describe here; eg, via expressing complex paired protein structures called “heterodimers.”

Polyphenols

Found in a vibrant array of fruits and vegetables such as blueberries, strawberries, grapes, red onions, spinach, as well as olive oil, tea, cocoa, polyphenols are powerful molecules that protect brain cells from damage and help promote neurogenesis.

Polyphenols work in several ways, and probably the most well-known mechanism is the suppression of inflammation (or neuroinflammation in the brain), via their antioxidative properties. This confers a degree of protection against injuries from various toxins, derived either from bad diets or environmental factors.

Reduced inflammation creates a much better environment for the development of new neurons.

Some lesser-known effects of polyphenols in the brain are:

• their ability to trigger signalling cascades in the brain, thus promoting neuronal survival and synaptic plasticity,

• enhancing the proliferation and differentiation of new cells in the subgranular and subventricular zones and the dentate gyrus of the hippocampus; and,

• inducing the expression of an unusual protein called “doublecortin,” specifically found only in developing neurons.

Vitamins B9 and B12

Essential for DNA synthesis in the body and the production of neurotransmitters, vitamins B9 and B12 are also crucial for neurogenesis. Leafy greens, beans, fish, and dairy products are examples of good sources of these vital nutrients.

There are two types of vitamin B9 available for human consumption: (1) folates, and (2) folic acid. While roughly equivalent in function, there are significant differences.

Folates are the natural form of vitamin B9, found in real foods, such as dark coloured leafy vegetables, beans, seafoods, nuts, etc. They are easily destroyed by high cooking heat. Hence, they are seldom found in ultra-processed foods (UPF).

Folic acid is a synthetic compound usually manufactured via a chemical process involving para-nitrobenzoic acid, thionyl chloride, toluene, monosodium glutamate, etc. Despite its artificial origins, there are health benefits of folic acid, which are often added to UPFS such as baked goods, cereals, pastas, flours, etc. The inclusion of folic acid in such foods was mandated in 1998 in the USA to prevent neural tube defects (severe defects of the central nervous system) in newborn babies.

An advantage of folic acid is that it is significantly more bioavailable for absorption (85%) than folates (50%) and it is also less affected by cooking heat and food processing. However, folic acid must be converted into 5- methyl tetra hydro fol ate (5-MTHF) before it is usable by the body. Folates from real food are already in 5-MTHF form and importantly are also presented with special proteins called Carrier Food Factors (CFF), which direct 5-MTHF to various target organs in the body, including the brain. Folic acid has no such complementary proteins.

The effect of vitamin B9 on neurogenesis is simply dose dependent. A chronic shortfall of B9 induces degeneration of the brain while elevated levels promote neurogenesis.

Vitamin B12 is known for stabilising and repairing neurons in the brain. It does this by maintaining the myelin sheaths of the axons of brain cells. Axons are the fine long dendritic links used by neurons for communication with other neurons. The vitamin also promotes the production of the myelin needed for the axons of new brain cells during neurogenesis. Additionally, B12 induces antioxidant activity by stimulating the production of special enzymes which destroy free radicals.

Anti-inflammatory foods

Any foods that reduce inflammation in the body are likely to be good for neurogenesis. This is simply because neurogenesis is impaired by inflammation. Bad diets can introduce free radicals and other inflammatory molecules into the body, which can then migrate from the digestive system into the blood, and then into the brain.

The range of anti-inflammatory foods is extensive, and include berries, leafy greens, fatty fish, nuts, whole grains, olive oil, turmeric, green tea, dark chocolate, etc. Basically, if you eat mostly natural plant-based foods (especially colourful vegetables in their raw forms) and avoid red meats and processed foods, your diet would almost certainly be helping to reduce inflammation in your body.

Factors hindering neurogenesis

Many factors can hinder neurogenesis. These factors are all around us and sometimes may be unavoidable.

Lousy diets

Ultra-processed foods (including junk and fast foods) are among the most harmful dietary choices for brain health. UPFS are cheap, delicious, ubiquitous, and can wreak havoc on brain health if over-consumed. Ingredients such as poor-quality fats (see below), processed starches, additives, sugars, and salt in UPFS reduce BDNF levels, impair neuroplasticity and induce neuroinflammation. Over-consumption of some UPFS has also been linked to cell deaths and cancers, which are the claimed side-effects of certain artificial additives.

Overconsumption

Lousy diets and UPFS frequently trigger intense food

cravings by causing dramatic fluctuations in blood glucose levels. This is a consequence of their refined starches and elevated sugar concentrations. These glucose swings can lead to eating addictions/cravings and subsequent overconsumption. Persistent overconsumption of lousy foods normally leads to diseases linked to metabolic syndrome over time. And nothing about acquiring metabolic syndrome is conducive to neurogenesis.

Poor-quality fats

We are generally aware of the dangers of over-eating saturated animal fats, because of their impact on blood cholesterol levels. But there is another danger of over-consuming certain plantbased fats, which is much less known.

The ratio of Omega-3 and Omega-6 fatty acids for humans should ideally be around 1:2, as it was during Palaeolithic times. However, a modern Western diet has an average ratio of 1:15. This high ratio is largely attributable to the amounts of Omega6 fatty acids in processed foods and seed oils, while the amounts of dietary Omega-3 fatty acids have remained relatively static. Note that some UPFS have unhealthy ratios of 1:30 or more, as producing foods with Omega-6 oils is much cheaper than using Omega-3 oils.

A consistently overly high ratio of Omega-6 in the diet is potentially a significant issue. Omega-3 metabolises into anti-inflammatory compounds while Omega-6 is processed into pro-inflammatory molecules. However, both are metabolised by the same enzymes (delta-6-desaturase and delta-5-desaturase). Therefore, there is competition for these enzymes during digestion.

Higher amounts of Omega-6 would grab more of the enzymes, resulting in the production of more pro-inflammatory signalling molecules (eg, eicosanoids, prostaglandins, and leukotrienes). Without Omega-3 to mitigate Omega-6, large numbers of pro-inflammatory molecules can trigger a cascade of inflammation throughout the body and brain via complex processes too detailed to describe here.

This is a two-part column. The next part explores the enigma of red wine and offers other factors which can promote neurogenesis.

By CHRIS Chan,  The views expressed here are entirely the writer’s own.m  


"Brain food" refers to foods that are believed to improve cognitive function, memory, focus, and overall brain health. These foods are typically rich in nutrients like antioxidants, healthy fats, vitamins, and minerals that support brain function. Here are some examples of brain-boosting foods:

1. Fatty Fish

  • Examples: Salmon, mackerel, sardines, trout.

  • Why: Rich in omega-3 fatty acids (DHA and EPA), which are essential for brain health, memory, and reducing inflammation.

2. Blueberries

  • Why: Packed with antioxidants that protect the brain from oxidative stress and may improve communication between brain cells.

3. Nuts and Seeds

  • Examples: Walnuts, almonds, flaxseeds, chia seeds.

  • Why: High in healthy fats, antioxidants, and vitamin E, which support brain health and may reduce cognitive decline.

4. Dark Chocolate

  • Why: Contains flavonoids, caffeine, and antioxidants that can enhance memory and improve mood.

5. Leafy Greens

  • Examples: Spinach, kale, broccoli.

  • Why: Rich in vitamin K, lutein, folate, and beta carotene, which are linked to slower cognitive decline.

6. Eggs

  • Why: A great source of choline, which is used to produce acetylcholine, a neurotransmitter important for mood and memory.

7. Turmeric

  • Why: Contains curcumin, which has anti-inflammatory and antioxidant benefits that may improve memory and ease depression.

8. Whole Grains

  • Examples: Oats, quinoa, brown rice.

  • Why: Provide a steady supply of energy to the brain through complex carbohydrates and fiber.

9. Avocados

  • Why: High in healthy monounsaturated fats that support blood flow to the brain and improve cognitive function.

10. Green Tea

  • Why: Contains caffeine and L-theanine, which can improve focus, alertness, and relaxation.

11. Pumpkin Seeds

  • Why: Rich in magnesium, iron, zinc, and copper, which are essential for brain health and nerve signaling.

12. Oranges

  • Why: High in vitamin C, which is key for preventing mental decline and supporting overall brain health.

13. Beets

  • Why: Improve blood flow to the brain and enhance cognitive performance due to their high nitrate content.

14. Greek Yogurt

  • Why: Contains probiotics that support gut health, which is linked to improved brain function and mood.

15. Water

  • Why: Staying hydrated is crucial for maintaining focus, memory, and overall brain function.

Incorporating these foods into a balanced diet can help support brain health and cognitive performance over time. Remember, a healthy lifestyle—including regular exercise, adequate sleep, and stress management—also plays a key role in maintaining optimal brain function.

Thursday, 30 January 2025

Malaysia launches Chatbot to combat fake news

 

CYBERJAYA: WhatsApp users in the country can now play an active role in stopping the spread of fake news by using the new chatbot “Aifa” to verify text messages before forwarding them to others, says Communications Minister Fahmi Fadzil.

He said the chatbot known as Aifa (Artificial Intelligence Fact-Check Assistant) can verify text messages in four languages: English, Bahasa Malaysia, Mandarin and Tamil.

“This chatbot on WhatsApp enables users to verify the messages they receive before they decide to forward them to others.

“We have among the fastest Internet speeds in South-East Asia, and fake news seems to spread more quickly.

“A few weeks ago, there was news that Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz was leaving Umno to join PKR, which was not true, but it went viral.

“Then, we had the one where Youth and Sports Minister Hannah Yeoh was alleged to be the daughter of the founder of YTL Corporation Bhd.

“Another was the fake news of 1.2 million Chinese citizens being in the country,” he said at the launch of Aifa at the Malaysian Multimedia and Communications Commission (MCMC) headquarters here yesterday.

Fahmi said Aifa would be able to verify if such text messages were true.

He added that the MCMC collaborated with strategic partners to develop and provide chatbot services on WhatsApp and the Sebenarnya.my portal.

Taking a spin: a MCMC staff member showing the aifa chatbot replies on Whatsapp.Taking a spin: a MCMC staff member showing the aifa chatbot replies on Whatsapp.

“The chatbot initiative led by MCMC will serve as a platform to help users verify the accuracy of information spread through the application.

“Aifa would help the public quickly and easily verify and obtain accurate information, accelerate the response to false information online and strengthen the role of Sebenarnya.my in combating the spread of fake news in Malaysia,” he said.

Fahmi said Aifa uses algorithms and machine learning to match information with reliable sources, and then quickly provides users with accurate and verified information.

“Currently, Aifa only accepts input in text format. In the future, it will be capable of accepting input in various formats.

“From 2020 to Jan 27, 2025, a total of 25,114 fake news items have been removed.

“We found that lately, the situation has worsened whereby criminals are widely using fake news and deepfakes.

“The licensing of social media platforms is only a part of government initiatives. The King has agreed to the amendments to the MCMC Act to curb porn, cyberbullying and scams,” said the unity government spokesman.

According to the MCMC, the number of fake news items detected after fact-checking reached nearly 20,000 last year.

“In 2024, the MCMC requested the removal of 19,546 fake news items from various online platforms. Of that number, 17,245 pieces of content were removed after being verified as fake news by all the involved platforms.

“As of Monday, the MCMC has requested the removal of 1,575 fake news items. Of these, 1,233 fake news were removed by the relevant platforms,” said Fahmi.

On another matter, he said social media giant Meta has submitted its documents to secure an Application Service Provider (ASP) Class Licence in Malaysia, while discussions are still ongoing with Google and Microsoft.

“As of Monday, Meta has sent over several documents.

“We will process them – and we expect that within a reasonable timeframe, we will issue a licence to Meta.

“Regarding Google and Microsoft (which manages LinkedIn)... the MCMC is following up on several matters.

“Each party has its perspective, and we need to take action. We will not delay taking the necessary steps for too long,” said Fahmi.Google had previously argued that it is not a social media platform, but the ministry maintains that certain parts of its YouTube platform, such as YouTube Shorts, function like social media, similar to TikTok.

Meanwhile, X – formerly Twitter – had claimed to have fewer than eight million users in Malaysia, which exempts it from the licensing requirement.

As of today, WeChat, TikTok, and Telegram have received their licences.

The newly introduced regulatory requirement aims to tackle rising cybercrime, requiring social media platforms and messaging services with over eight million users in the country to obtain a licence or face legal action.This requirement came into effect on Jan 1.


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DeepSeek's AI should be a 'wakeup call' to US industry, it unveils hidden US market risk, top free downloads, effect on M’sia

Trump: China's low-cost AI should challenge American firms

 

MIAMI, Jan 27 (Reuters) - U.S. President Donald Trump said on Monday that Chinese startup DeepSeek's technology should act as spur for American companies and said it was good that companies in China have come up with a cheaper, faster method of artificial intelligence.
"The release of DeepSeek, AI from a Chinese company should be a wakeup call for our industries that we need to be laser-focused on competing to win," Trump said in Florida.
Investors sold technology stocks across the globe on Monday over concerns the emergence of a low-cost Chinese artificial intelligence model would threaten the dominance of the current U.S.-based AI leaders.
U.S. President Donald Trump attends a House Republican members conference meeting in Miami
U.S. President Donald Trump speaks during a House Republican members conference meeting in Trump National Doral resort, in Miami, Florida, U.S. January 27, 2025. REUTERS/Elizabeth Frantz/File Photo Purchase Licensing Rights, opens new tab
"I've been reading about China and some of the companies in China, one in particular coming up with a faster method of AI and much less expensive method, and that's good because you don't have to spend as much money. I view that as a positive, as an asset," Trump said.
"I view that as a positive because you'll be doing that too, so you won't be spending as much, and you'll get the same result, hopefully," he said.
Trump said Chinese leaders had told him the United States had the most brilliant scientists in the world, and he indicated that if Chinese industry could come up with cheaper AI technology, U.S. companies would follow.
"We always have the ideas. We're always first. So I would say that's a positive that could be very much a positive development. So instead of spending billions and billions, you'll spend less, and you'll come up with, hopefully, the same solution," Trump said. -Reuters

DeepSeek unveils hidden US market risk

Clearly, it’s hard to know where the DeepSeek panic will lead. — Bloomberg

THE S&P 500 Index plummeted as much as 2.3% on Monday over DeepSeek, a Chinese artificial intelligence (AI) startup that developed a model competitive with the US’s very best – and, supposedly, on the cheap.

Venture capitalist Marc Andreessen called it a “Sputnik moment,” a reference to the Russian satellite that set off the 1957-1960s Space Race.

Chip companies plummeted and so did many of the communications giants developing AI tools of their own.

But the ostensible pandemonium in the world’s biggest stock market was not as widespread as you might imagine, and it seemed to abate as the trading day wore on.

With DeepSeek hype still largely indistinguishable from reality, the main lasting lesson may be that diversification still matters.

Consider the following factoids about Monday, the worst intraday selloff of 2025:

> At the time of writing, 328 stocks on the S&P 500 were up.

> The median stock was up 0.7% and the average was down just 0.2%.

> Among sectors, healthcare, consumer staples, real estate and financials were all positive on the day.

> Information technology (IT) accounted for 95% of the index move.

> Nvidia Corp, which is behind cutting edge AI chips that are also eye-poppingly expensive, accounted for about two thirds of the decline on its own.

In other words, investors would have been in a privileged position on Monday morning if they had simply rebalanced their equity investments this year into equal-weight portfolios of large-cap stocks, instead of leaning into the increasingly AI-concentrated market-capitalisation- weighted S&P 500 Index or Nasdaq 100.

I’ll admit it: betting against the cap-weighted index has been a losing proposition for the past decade and a half, but concentration risk has become a more acute problem for investors in the past two years.

S&P 500 Index investors’ exposure to IT and communication services companies is at its highest since the dot-com bubble.

Overweight tech

Tech and communications services add up to 41% of the S&P 500. And just seven companies account for about a third of the entire index by weighting.

Nvidia alone had a greater weighting than five of the 11 sectors represented in the index.

That concentration is a big reason why a Goldman Sachs Group Inc report in October suggested that the S&P 500 would deliver an annualised total return of just 3% over the next decade (or only about 1% per year if you adjust for inflation).

“Our historical analyses show that it is extremely difficult for any firm to maintain high levels of sales growth and profit margins over sustained periods of time,” Goldman wrote at the time.

It’s always technically possible that today’s index giants continue to outperform, but history is working against us.

Similarly, the research suggests that market concentration is associated with greater volatility going forward.

If the market truly underwhelms over the next decade, it may well be in the form of a crash followed by a long, gruelling recovery – rather than 10 years of nearly flat real returns.

Fortunately, elementary mitigation strategies are easy to implement, and you don’t even need options (in fact, tail hedges are very inefficient in slow-moving bear markets like the dot-com bust).

The Goldman report suggested that the equal-weighted version of the S&P 500 could outperform the S&P 500 by 200-800 basis points in the decade.

Additionally, the juicy income benefits of bond ownership may give new life to 60/40-type mixed asset class portfolios.

And investors may finally take the opportunity to add some exposure to unloved international stocks, as well as small- and mid-capitalisation US stocks that can still benefit from a strong macroeconomic backdrop.

Clearly, it’s hard to know where the DeepSeek panic will lead.

Companies representing about 38% of the S&P 500 by weighting are expected to report earnings this week, and those announcements should provide some insight into how US executives are processing the developments and help us sort hype from reality.

Even in a scenario in which the narrative proves well-founded, it’s entirely possible that a cheaper path ahead for AI turns into a net positive for many publicly traded US companies, including companies developing AI-related software, and end users.

But first, Monday’s market action may shake index tracking investors out of their complacency.

For all the strengths of the US economy and stock market, the index’s composition is tilted strongly in favour of the spectacular AI story and the premise that we’ve correctly identified the market winners.

Odds are that we have the narrative at least a little bit wrong, and investors should expect to pay for their lack of true diversification with ongoing volatility and perhaps even subpar total returns. — Bloomberg

- by Jonathan Levin,  a columnist focused on US markets and economics. The views expressed here are the writer’s own.


Chinese AI app DeepSeek tops Apple App Store’s free downloads in China and US, outpacing ChatGPT

deepseek

deepseek

Chinese artificial intelligence (AI) app DeepSeek topped the Apple App Store's free downloads in both China and the US on Monday, outpacing ChatGPT in free downloads in the US. 

Following the momentum, DeepSeek-related stocks rallied strong on Monday's opening with multiple stocks opening more than 10 percent higher. 

Chinese AI startup DeepSeek in January released the latest open-source model DeepSeek-R1, which has achieved an important technological breakthrough - using pure deep learning methods to allow AI to spontaneously emerge with reasoning capabilities, the Xinhua News Agency reported. 

In tasks such as mathematics, coding and natural language reasoning, the performance of this model is comparable to the leading models from heavyweights like OpenAI, according to DeepSeek.

The app soon sparked global attention, which has Silicon Valley marveling at how its programmers nearly matched American rivals despite using relevantly less-powerful chips, according to a report from the Wall Street Journal (WSJ) on Sunday. 

For instance, "Deepseek R1 is one of the most amazing and impressive breakthroughs I've ever seen," said Marc Andreessen, the Silicon Valley venture capitalist who has been advising President Trump, in an X post on Friday.

Barrett Woodside, co-founder of the San Francisco AI hardware company Positron, said he and his colleagues have been abuzz about DeepSeek. "It's very cool," said Woodside, pointing to DeepSeek's open-source models in which the software code behind the AI model is made available free, per the WSJ report.

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DeepSeek and its effect on M’sia

Analysts are largely of the view that US president Donald Trump is unlikely to alter the directive set by former president Joe Biden regarding the limitations on exporting AI chips from the United States.

PETALING JAYA: The domestic technology sector could be in for more uncertainties as Chinese startup DeepSeek launches a free, open-source artificial intelligence (AI) model that experts say rivals OpenAI’s ChatGPT.

This comes amid heightened tensions in the AI trade, which saw a sell-off in the technology sector earlier this month after the Biden administration announced new restrictions on the export of advanced semiconductors and AI technology, citing national security concerns.

Under the new rules, Malaysia was placed in a category allowed to procure only a fixed and limited amount of such advanced technology, potentially constraining the development of its AI capabilities.

Subsequently, the local construction sector was downgraded by at least two research houses, on the basis that many of these contractors had factored in work related to the construction of data centres in Malaysia.

Analysts are largely of the view that US president Donald Trump, who aims to establish the United States as the global leader in AI, is unlikely to alter the directive set by former president Joe Biden regarding the limitations on exporting AI chips from the United States.

However, Tradeview Capital Sdn Bhd portfolio manager Ng Tzyy Loon said DeepSeek’s AI chatbot may throw the effectiveness of the proposed AI export control order into question.

“The US’s strategy to limit the development of AI in other countries by controlling their access to top-tier computing power and technology may not achieve its intended goals, as proven by the creation of DeepSeek,” he told StarBiz.

Last December, DeepSeek launched its DeepSeek-V3 model, which was reportedly developed at a much lower cost of US$5.6mil. In contrast, the training of OpenAI’s ChatGPT-4 model had reportedly required an investment of around US$100mil.

On Jan 20, the startup released another AI model, the DeepSeek-R1, which is said to rival OpenAI’s o1 (designed to complement ChatGPT) reasoning capabilities, sparking concerns over US tech dominance and prompting a reevaluation of technology companies’ lofty valuations.

The Bursa Technology Index has slipped by 0.88% since Monday. Yesterday, local technology or data centre-related stocks like YTL Power International BhdInari Amertron BhdNationgate Holdings Bhd and PIE Industrial Bhd fell by as much as 3%, 2%, 5% and 2%, respectively.

Major Wall Street indexes also tanked as the market digested the release of DeepSeek-R1.

The S&P 500 tumbled 1.5% while the tech-heavy Nasdaq composite sank 3.1%.

The blue-chip Dow Jones Industrial Average, which is less dependent on tech stocks, gained more than 0.6% with investors flocking to more defensive sectors.

Major tech counters like Nvidia Corp and ASML Holding NV slid as much as 17% and 6%, respectively.

Ng noted one notable aspect of DeepSeek’s AI models is their use of Nvidia’s H800 chips for training, which are not top-of-the-line chips like Nvidia’s H-100 of which the Biden administration’s latest export controls had planned to target.

“This shows that restricting access to top-tier chips may not prevent advancements in AI development, as companies can innovate around these limitations,” he said.

While this may be the case, it is important to note that the H-800 chip itself has been included in the US export restriction list since 2023.

Tradeview’s Ng also pointed out the cost and complexity of monitoring and tracking AI chip usage make enforcement highly challenging for the United States.

“While the US government can track where the AI chips are distributed, enforcing such restrictions is challenging, given the number of countries, such as Singapore, that are eager to advance their AI capabilities.

“Countries may also find ways to smuggle in AI chips like what China does, making it difficult to monitor effectively,” he said.

Ng is of the view that Trump may employ a more pragmatic approach in going about Biden’s proposed AI export control order.

“I think he may repeal the order or at the very least, adjust the rules to make the restrictions less stringent,” he said.

In a report yesterday, Kenanga Research said all eyes are now on Big Tech’s response to the AI capital expenditure ahead, with concerns surrounding the risks of a smaller addressable market for high-end chips.

“On the heels of big spending announcements of a whopping US$500bil under the joint-venture entity Stargate, the pledge to spend multiple billions by Big Tech will likely come under more scrutiny, as we expect them to carefully evaluate strategies given this AI development.

“Demand for state-of-the-art chips will still be intact in our view for firms that are pushing the envelope in developing frontier large language models, or put simply, the most advanced and cutting-edge models to understand and generate text,” the research house said.

As for the data centre play in Malaysia, Ng said it remains intact in the near term looking at the committed data centres here. However, there may be delays or uncertainties around new data centre projects.

“This is because the graphics processing unit (GPUs) already committed are well below the levels planned by major players like Nvidia and Amazon globally.

“For now, the impact should be manageable in the near to medium term, but beyond three years, further expansion could become challenging if the restrictive AI executive order really comes through,” he said.

BMI telecoms and technology industry analyst Niccolo Lombatti said it is important to note that not all Malaysian data centres rely on US-supplied chips.

“The decision of what chips to use is largely a function of its intended use case and therefore its design.

“On the one hand, some Malaysian data centres can utilise a lower number of US-supplied GPUs or chip alternatives from non-US vendors because they are looking to address demand from non-AI related use cases, or less intensive AI use cases, thus insulating them from the AI executive order’s effects,” he explained.

Nonetheless, Lombatti said the main risks arise for data centres targeting high-density AI applications, particularly those in Johor aiming to attract Singapore-based customers seeking rack densities up to or even in excess of 120 kilowatt

“Therefore, Malaysian data centres designed around high-density racks using the latest US-manufactured GPUs face greater risks over the next few years. Owners may need to slow development or scale back to lower-density designs, leading to significant capital expenditure inefficiencies,” he said.

Ng remained optimistic the country will be able to continue to attract data centre investments, underpinned by Malaysia’s cost competitiveness in terms of land, labour and electricity.

“Additionally, Malaysia’s proximity to Singapore is a key factor. The geographical location is crucial for data transfer and connectivity, and many global players already have data centres in Singapore,” he said.

On this note, Kenanga Research said contractors are more insulated in the AI race to roll out data centres given the emergence of DeepSeek could accentuate Malaysia’s position in being able to provide the brick and mortar for the data centre competitively.

As for YTL Power, the research outfit said the negatives are priced in with data centres fully discounted in its share price. At this juncture, firm takers for YTL Power’s AI data centre GPU as a service may still be needed to re-rate the stock.

YTL Power International Bhd, Inari Amertron, Nationgate Holdings and PIE Industrial closed at RM3.11, RM2.52, RM1.79 and RM4.57, respectively, yesterday.

By ELIM POON


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DeepSeek launches new AI model as Trump cautions of ‘wake-up call’ to US industry