Arm Holdings Under Probe By Malaysia's Anti-Graft Agency For $279 Million Deal

On Wednesday, Malaysia’s anti-graft agency launched an investigation into a 1.1 billion ringgit ($279 million) deal between the Malaysian government and Softbank (OTC:SFTFB) (OTC:SFTBY)-owned chip firm Arm Holdings (NASDAQ:ARM).

The Malaysian Anti-Corruption Commission is investigating alleged corruption and fraud tied to the deal between the two parties, Reuters reported.

Azam Baki, the chief of the Malaysian Anti-Corruption Commission, disclosed that the investigation includes allegations of abuse of power, fraud, and governance related to the Arm deal.

Senior Officials Questioned in Expanding Probe

So far, 12 individuals have been summoned to provide statements on the Arm Holdings deal, including a former minister and officials from the economy ministry and Malaysia’s investment agency.

Malaysia’s government had agreed to pay Arm $250 million over 10 years for the firm’s chip design plans for local manufacturers in a deal announced in March 2025.

Probe Could Affect Government and Business

“We will investigate this matter in a fair and professional manner,” Azam said, adding more witnesses will be called.

The investigation could have wide-ranging consequences for the government, the companies involved and the individuals under scrutiny.

Its outcome may also affect Malaysia's business and investment climate, as well as the country's international reputation.

Arm Holdings Market Standing

Arm Holdings which is a Cambridge-based global semiconductor and software design company has a market capitalization of $129.27 billion and has a 52-week high of $183.16 and a 52-week low of $80.00.

ARM has a Relative Strength Index (RSI) of 49.32.

Benzinga’s Edge Stock Rankings indicate that ARM is experiencing short-term upward movement along with medium and long-term consolidation.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.