PUTRAJAYA – Malaysia’s anti-corruption agency is investigating alleged abuse of power, fraud, and governance lapses in a RM1.11 billion (US$250 million) agreement signed last March with British chip designer Arm Holdings to elevate the country’s semiconductor capabilities amid the US-China tech rivalry.
The Malaysian Anti-Corruption Commission (MACC) has questioned 12 witnesses from the Economy Ministry, Investment Development Authority, Trade Ministry, and others, chief Azam Baki revealed Wednesday. The probe targets James Chai, former aide to ex-economy minister Rafizi Ramli, who oversaw the deal and seeks his return from Britain.
Chai and Rafizi deny irregularities, labeling the inquiry politically driven. The pact, aimed at shifting Malaysia from low-end chip packaging to high-value wafer fabrication and design, involves decade-long payments to SoftBank-owned Arm for technology and support.
A global top-10 chip exporter with RM387.98 billion in 2024 semiconductor shipments, centered in Penang’s “Silicon Valley” Malaysia eyes further growth via Prime Minister Anwar Ibrahim’s April 2024 semiconductor design park initiative. MACC vows a fair, professional investigation, with more witnesses to come.