The Southeast Asian 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.
A former minister was one of those called in to give a statement, Azam said, refusing to name the individual.
Rafizi Ramli was Malaysia's economy minister at the time, while Tengku Zafrul Aziz held the investment, trade and industry minister portfolio.
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.
Malaysia said at that time it would pay $250 million over a decade to receive support from the British company.
"We will investigate this matter in a fair and professional manner," Azam said, adding that more witnesses will be summoned to assist the probe.
Malaysia's semiconductor exports were valued at 387.98 billion ringgit ($87.48 billion) in 2024, the Malaysia External Trade Development Corporation said, making the country one of the world's top 10 chip exporters.
Malaysia's northern island of Penang, home to a number of facilities, is often dubbed the country's Silicon Valley.
Prime Minister Anwar Ibrahim announced plans in April 2024 to build a massive semiconductor design park, an effort to move the country beyond chips production.
llk/cms
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