Malaysia anti-graft agency probes $356m govt deal with UK chip giant Arm
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Former economy minister Rafizi Ramli has denied wrongdoing.
PHOTO: BERNAMA
Putrajaya - Malaysia’s anti-corruption agency said on March 4 it was probing alleged abuse of power, fraud and governance issues linked to a RM1.11 billion (S$356 million) deal between the Malaysian government and British chip giant Arm Holdings.
The country, which is one of the world’s top chip exporters, signed an agreement with the firm in March 2025 to boost production of high-end semiconductors, as the US-China tech trade war shook global markets.
“We have summoned a total of 12 witnesses so far from various government agencies, especially from the Economy Ministry, Malaysia’s Investment Development Authority and also from the Trade Ministry and several other agencies,” Malaysian Anti-Corruption Commission (MACC) chief Azam Baki said.
MACC said in a statement it is seeking Mr James Chai, once an aide of former economy minister Rafizi Ramli, who oversaw the deal. Mr Chai, who is currently working in Britain, and Datuk Seri Rafizi denied wrongdoing and said the probe was politically motivated.
Malaysia is a key player in the vital chip sector but has been largely focused on packaging, assembly and testing services – the lower end of the market.
The Arm Holdings agreement will see the SoftBank-owned firm provide chip designs and other technology to Malaysia, helping the nation shift into more value-added production, such as wafer fabrication and integrated circuit design.
Malaysia said at that time it would pay US$250 million (S$319 million) over a decade to receive support from the British company.
“We will investigate this matter in a fair and professional manner,” Tan Sri Azam said, adding that more witnesses will be summoned to assist the probe.
Malaysia’s semiconductor exports were valued at RM387.98 billion in 2024, the Malaysia External Trade Development Corporation said, making the country one of the world’s top 10 chip exporters.
Malaysia’s northern island of Penang, home to a number of facilities, is often dubbed the country’s Silicon Valley.
Prime Minister Anwar Ibrahim announced plans in April 2024 to build a massive semiconductor design park, an effort to move the country beyond chip production. AFP
