Malaysia anti-graft agency probes $356m govt deal with UK chip giant Arm

Malaysia is a key player in the vital chips sector but has been largely focused on the lower end of the market. Read more at straitstimes.com.

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 ringgit (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 last March to boost production of high-end semiconducters, 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.

MACC said in a statement it is seeking James Chai, once an aide of former Economy Minister Rafizi Ramli, who oversaw the deal. Mr Chai, who is currently working in the UK, and Datuk Seri Rafizi denied wrongdoing and said the probe was politically motivated.

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.