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FORMER Economy Minister Datuk Seri Rafizi Ramli has rejected allegations that the RM1.1 billion microchip agreement with ARM Holdings was hurried through without proper scrutiny, describing such claims as an affront to the Cabinet ministers involved in its approval.
The Malaysian Anti-Corruption Commission (MACC) has confirmed it is investigating the agreement following complaints that it was signed without appropriate approvals from the Ministry of Investment, Trade and Industry and the Ministry of Finance.
In an exclusive statement to The Edge, the Pandan MP said the proposed collaboration had been presented to the Cabinet on three separate occasions and deliberated upon by a committee comprising officials from the Ministry of Economy, Miti, and the Ministry of Finance.
“To say it was rushed is to accuse the Prime Minister, MOF and Miti ministers as well, because they were all part of the process,” Rafizi said, adding that the ministries had negotiated directly with ARM’s leadership, including Masayoshi Son.
He maintained that the inter-ministerial committee played an active role in negotiations, ensuring its views were incorporated into a revised draft of the agreement.
Differences over which ministry should spearhead semiconductor investments had delayed progress, prompting further Cabinet discussions.
“A committee was formed comprising the then Miti minister Datuk Seri Tengku Zafrul Aziz, Second Finance Minister Datuk Seri Amir Hamzah Azizan, myself as Minister of Economy, and officials from the respective ministries to thrash out all the details.
“On the behest of the Prime Minister Datuk Seri Anwar Ibrahim, who wanted to see the collaboration take off, the committee finalised the agreement.”
Following those deliberations, Rafizi said the Prime Minister convened a meeting with ministry heads and senior officials, after which the proposal was returned to the Cabinet.
“It was re-tabled for the third time and passed because the government wanted to honour the date agreed with ARM for signing,” Rafizi said.
He also clarified that the Malaysian Investment Development Authority, rather than the Ministry of Economy, formally executed the agreement, while funding arrangements fell under the authority of MIDA and the MOF.
Signed in March 2025, the RM1.1 billion deal is aimed at securing advanced semiconductor intellectual property from ARM Holdings, particularly for artificial intelligence chip design and production.
The collaboration is intended to shift Malaysia’s semiconductor industry up the value chain from assembly and testing towards high-end chip design and innovation. - February 17, 2026
