Economy Minister Akmal Nasrullah says the cabinet-mandated deal with Arm Holdings is vital for Malaysia’s move into front-end chip design, despite an ongoing MACC review.

PUTRAJAYA: The government hopes its agreement with global semiconductor firm Arm Holdings Plc will proceed, aiming to advance Malaysia’s chip industry from packaging to design. Economy Minister Akmal Nasrullah Mohd Nasir stated the cabinet-mandated directive is crucial for local industry players to access Arm’s intellectual property.

This access is part of a national initiative to produce “Made in Malaysia” chips. He emphasised the deal aligns with the goal under the 13th Malaysia Plan to elevate the semiconductor sector.

Akmal Nasrullah addressed the matter amid an ongoing Malaysian Anti-Corruption Commission (MACC) review. The MACC is examining allegations of mismanagement involving an investment of approximately RM1.11 billion linked to a former senior minister.

MACC deputy chief commissioner Datuk Seri Ahmad Khusairi Yahaya said the commission received complaints from three NGOs and is conducting a review. The minister affirmed the ministry’s focus is ensuring policy and implementation remain unaffected.

“We will fully cooperate with any investigation,” Akmal Nasrullah said. He added the deal with the UK-based Arm Holdings, which holds the world’s largest semiconductor IP portfolio, is critical for Malaysia’s regional competitiveness.

He stated the country cannot afford to miss this opportunity in the semiconductor supply chain. The agreement’s implementation must continue beyond a memorandum of understanding.

Under the existing agreement, two companies were granted IP access last year. The current phase focuses on using Arm Holdings to expand training opportunities.

The commitment includes developing 10,000 talents for the chip creation sector. Akmal Nasrullah hopes this initiative continues for the nation’s benefit and to create opportunities for young Malaysians.

 The Sun Malaysia