Malaysia’s Arm chip deal probe turns political as ex-aide says: ‘I am not Jho Low 2.0’

Malaysia’s anti-corruption investigation into a flagship chip-design deal with Britain’s Arm Holdings took a more combustible turn on Thursday after a former government aide declared: “I am not Jho Low 2.0.” The remark – invoking the fugitive financier at the centre of Malaysia’s 1MDB scandal – came as the country’s anti-corruption agency pushed back against his claims, while allies of Prime Minister Anwar Ibrahim warned the investigation risked appearing heavy-handed. The dispute has dragged one of Putrajaya’s most ambitious technology bets into a widening political fight, even as Malaysia tries to position itself higher up the global semiconductor value chain. When it was signed a year ago, the agreement with Arm was touted as a cornerstone of the country’s effort to move beyond chip assembly and testing into higher-value design work. Under the deal, Malaysia agreed to pay US$250 million over 10 years for Arm’s intellectual property, including seven high-end chip design blueprints, while training 10,000 engineers as it seeks to build local champions in artificial intelligence and semiconductors. Malaysia already accounts for about 13 per cent of global chip testing and packaging, and has spent the past two years pitching itself as a serious node in the global tech supply chain. On Wednesday, Malaysia’s Anti-Corruption Commission (MACC) chief Azam Baki said officers were investigating possible abuse of power, fraud and governance failures linked to the 1.1 billion ringgit (US$278.5 million) deal. Investigators had recorded statements from 12 people, including a former minister and officials from the economy ministry and investment agencies, he said. “We will investigate this matter in a fair and professional manner,” Azam said at a special press conference, adding that officers were also reviewing cabinet papers related to the agreement. The case escalated after the MACC publicly sought James Chai, a former policy aide to ex-economy minister Rafizi Ramli who later briefly worked with Arm after leaving government. Now based in Britain, Chai issued a six-page statement on Wednesday denying wrongdoing and rejecting social media claims that he had profited from the deal. He insisted he had no decision-making power over the agreement. “I did not influence Anwar Ibrahim, the cabinet and the entire government machinery to sign the Arm Limited deal so I could get a job,” he wrote. Chai also accused the authorities of trying to portray him as being on the run. “The MACC issued a public search for me, as though I am a fugitive,” Chai said. “He gave the impression that I am hiding like a fugitive. I am not.” In the same statement, he said the controversy went beyond his own role. “This is not about coming after James Chai specifically. It is about coming after people like me,” he said. The MACC responded on Thursday, saying Chai’s account was “inaccurate” and “misleading”. It said a public notice to trace a person was standard procedure, issued only after attempts to make contact had failed, and “does not constitute a criminal accusation”. The agency said officers had tried to reach Chai by WhatsApp from February 24, but that their number was allegedly blocked two days later. “If James Chai has nothing to hide, he should present himself and cooperate with the investigation,” MACC said, adding that it issues between two and five such notices a week on average. Political heat grows The handling of the case has stirred unease even within parties aligned with Anwar’s unity government. Woo Kah Leong, youth chief of the Democratic Action Party, said the investigation risked creating “a climate of fear” and feeding perceptions that enforcement powers were being used selectively or in an intimidating way. “The recent investigation conducted by MACC towards certain individuals has created an impression that enforcement powers may be used in a selective or intimidating manner,” he said in a statement on Thursday. “The [public] is watching closely, and therefore MACC must not engage in political witch-hunting against an ordinary citizen … creating public concern that enforcement powers are being exercised selectively, thereby eroding confidence in our institutions.” Rafizi’s press office said he had not been called to give a statement, despite Azam’s claim that a former minister had been summoned. On Thursday, Rafizi escalated his criticism in a social media post, saying it was Anwar himself who had requested his team arrange meetings with Arm and who had chaired cabinet discussions that repeatedly approved the deal. “If there was really any impropriety, the first person the MACC should be looking for is the prime minister himself,” he wrote. “But Azam Baki is busy looking for James – who was just an officer preparing the slides – and is now working in Cambridge.” Ahmad Mohsein Azman, a senior analyst at consultancy BowerGroupAsia, said the optics were becoming as damaging as the allegations themselves. “The public is gravely concerned that MACC, which stands as a hallmark of Malaysia’s push against kleptocracy and corruption, is being used as a vindictive tool against political opponents and dissenters,” he said. If that perception grew, it could revive fears of democratic backsliding and authoritarian behaviour that many Malaysians were now expressing publicly, he warned.

Malaysia’s Arm chip deal probe turns political as ex-aide says: ‘I am not Jho Low 2.0’

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The probe into a flagship chip-design deal has sparked criticism, with Prime Minister Anwar’s allies questioning the investigation

The probe into a flagship chip-design deal has sparked criticism, with Prime Minister Anwar’s allies questioning the investigation