MACC Probes RM4.7 Trillion Chip Scandal

Malaysia’s anti-corruption commission is investigating alleged corruption and fraud in a technology deal worth RM1.1 billion between the Malaysian government and Arm Holdings, the UK-based chip designer. MACC chief Azam Baki said the probe is examining possible abuse of power, fraud, and governance issues in the agreement. ‘We will investigate this matter fairly and professionally,’ Azam said, quoted by Reuters on Thursday (5 March 2026). He disclosed that to date 12 individuals have been summoned for questioning, including a former minister and several officials from the Ministry of Economy and Malaysia’s government investment agencies. In addition to the Arm deal, the anti-corruption body is also examining plans for the acquisition of construction company IJM Corporation Berhad by local conglomerate Sunway Group. For context, the Malaysian government previously announced the Arm deal in March 2025. Under the agreement, the government would pay US$250 million over 10 years to obtain Arm’s chip designs, which could be used by local semiconductor manufacturers. Earlier reports indicate Indonesia, through the Danantara Investment Management Agency (BPI Danantara), also signed a framework agreement with Arm Limited. In this collaboration, the government will develop six chip designs based on intellectual property owned by Indonesia. The focus includes several strategic sectors, including automotive technology, the Internet of Things (IoT), data centres, home appliances, and futuristic areas such as autonomous vehicles and quantum computing.