Kuala lumpur: The Ministry of Economy remains committed to advancing its agreement with global semiconductor firm Arm Holdings Plc, despite an ongoing investigation by the Malaysian Anti-Corruption Commission (MACC). This move aligns with the Cabinet's directive to propel Malaysia's semiconductor sector from the 'back end' of packaging to the 'front end' of chip design development.
According to BERNAMA News Agency, Economy Minister Akmal Nasrullah Mohd Nasir emphasized the importance of the Cabinet-mandated directive, which aims to provide local industry players with access to Arm Holdings' intellectual property (IP). This initiative is a critical component of the nation's strategy to manufacture 'Made in Malaysia' chips. He noted that while Malaysia currently ranks sixth globally in semiconductors, the focus has been primarily on packaging. The partnership with Arm Holdings is intended to transition the country towards front-end chip design, a goal outlined in the 13th Malaysia Plan (13MP).
Minister Akmal Nasrullah addressed concerns about the continuation of the agreement amidst the MACC's probe into alleged mismanagement involving a former senior minister and a RM1.11 billion investment. The MACC has received complaints from three NGOs and is currently reviewing these allegations before proceeding with a formal investigation.
Despite these challenges, Akmal Nasrullah highlighted that under the existing agreement, two companies had already been granted IP access last year. The current phase of the agreement focuses on expanding training opportunities through Arm Holdings, with a commitment to developing 10,000 talents for the chip creation sector. He underscored the Cabinet-level decision's significance in advancing the semiconductor sector and creating better opportunities for young Malaysians.
Addressing concerns about the impact of the MACC investigation on investor sentiment and Malaysia's position as an AI hub, Minister Akmal Nasrullah reassured that the Ministry of Economy's priority is to ensure the agreement's policy and implementation remain unaffected. He emphasized the importance of maintaining cooperation with the investigation while highlighting the strategic importance of the partnership with Arm Holdings, a company with the largest IP portfolio in semiconductor development.
The event also saw the presence of Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin and Datuk Seri Dr Wan Azizah Wan Ismail, Bandar Tun Razak Member of Parliament and the prime minister's wife, at the launch of the 2026 Economic Census.