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View all search resultsMalaysia anti-graft agency probes $280 million govt deal with UK chip giant
The Southeast Asian country, which is one of the world's top chip exporters, signed an agreement with the firm last March to boost production of high-end semiconductors, as the US-China tech trade war shook global markets.
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Malaysia's Anti-Corruption Commission (MACC) chief commissioner Azam Baki takes part in a press conference at the MACC headquarters in Putrajaya on March 4, 2026. Malaysia's anti-corruption agency on March 4 said it was probing alleged abuse of power, fraud and governance issues linked to a 1.11 billion ringgit ($280 million) deal between the Malaysian government and British chip giant Arm Holdings. (AFP/Arif Kartono)
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alaysia's anti-corruption agency said Wednesday it was probing alleged abuse of power, fraud and governance issues linked to a 1.11 billion ringgit ($280 million) deal between the Malaysian government and British chip giant Arm Holdings.
The Southeast Asian country, which is one of the world's top chip exporters, signed an agreement with the firm last March 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," Anti-Corruption Commission (MACC) chief Azam Baki said.
A former minister was one of those called in to give a statement, Azam said, refusing to name the individual.
Rafizi Ramli was Malaysia's economy minister at the time, while Tengku Zafrul Aziz held the investment, trade and industry minister portfolio.
Malaysia is a key player in the vital chips 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 $250 million over a decade to receive support from the British company.
"We will investigate this matter in a fair and professional manner," Azam said, adding that more witnesses will be summoned to assist the probe.
Malaysia's semiconductor exports were valued at 387.98 billion ringgit ($87.48 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 chips production.
