GOVT SEEKS CONTINUITY OF ARM HOLDINGS DEAL AMID MACC PROBE - AKMAL NASRULLAH

PUTRAJAYA, Feb 23 (Bernama) -- The Ministry of Economy hopes that the government’s agreement with global semiconductor company Arm Holdings Plc can continue, in line with the Cabinet’s decision to elevate Malaysia’s semiconductor sector from the “back end” to the “front end” through chip design development.

Economy Minister Akmal Nasrullah Mohd Nasir stated that the directive mandated by the Cabinet is essential to ensure local industry players can access the intellectual property (IP) of Arm Holdings, as part of the nation’s initiative to produce “Made in Malaysia” chips.

“At the same time, we recognise that Malaysia’s engagement with Arm Holdings is a Cabinet-mandated decision. Therefore, the process will continue, including providing IP access so that our semiconductor industry players can work on chip design.

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“Currently, Malaysia ranks sixth globally in semiconductors, but we remain focused on the back end, namely packaging. The agreement with Arm Holdings allows the country to move towards front-end chip design, which is also a goal under the 13th Malaysia Plan (13MP) -- that is to produce locally made chips,” he said after attending the launch of the 2026 Economic Census here today.

Akmal Nasrullah was responding to questions on whether the government would proceed with the agreement despite an ongoing investigation by the Malaysian Anti-Corruption Commission (MACC).

The MACC previously stated that it would review allegations of mismanagement involving an investment of approximately RM1.11 billion linked to a former senior minister before initiating a formal investigation.

MACC deputy chief commissioner (operations) Datuk Seri Ahmad Khusairi Yahaya said the commission had received complaints from three non-governmental organisations (NGOs) and required time to conduct its review.

Meanwhile, Akmal Nasrullah said that under the existing agreement, two companies were granted IP access last year.

“The current phase focuses on how we can use Arm Holdings to expand training opportunities. As part of the agreement, our commitment is to develop 10,000 talents who can be absorbed into the chip creation sector.

“Fundamentally, since this was decided at Cabinet level and is intended to elevate the semiconductor sector towards front-end development while opening better opportunities for young Malaysians, I hope this initiative can continue for the benefit of the nation,” he said.

Whether the ongoing MACC investigation could affect investor sentiment and Malaysia’s position as an artificial intelligence (AI) hub, Akmal Nasrullah responded that the Ministry of Economy’s focus is to ensure that the policy and implementation of the agreement remain unaffected.

“We will fully cooperate with any investigation. At the same time, this involves the country’s image because the United Kingdom-based Arm Holdings is a world-class company holding the largest IP portfolio in semiconductor development.

“We cannot afford to miss this opportunity as we compete regionally in the semiconductor supply chain. Our focus is to ensure that this agreement is more than just a memorandum of understanding -- its implementation must continue as planned,” he added.

Also present at the 2026 Economic Census event were Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin and Bandar Tun Razak  Member of Parliament, who is also the prime minister’s wife, Datuk Seri Dr Wan Azizah Wan Ismail.

-- BERNAMA