BANGKOK —

Malaysia’s anti-corruption czar has sued a local journalist for defamation over articles questioning the legality of his past shareholdings in a case seen by some as a bellwether and test of the country’s rule of law.

Azam Baki, chief commissioner of the Malaysian Anti-Corruption Commission, filed suit against Lalitha Kunaratnam January 12 seeking some $2.38 million in damages and costs over a pair of articles first published in October by the Independent News Service, a local online news outlet. In them, Lalitha catalogues Azam’s alleged business interests and connections and questions whether they were properly declared or pose a conflict of interest.

According to the reports, Azam held nearly 3 million shares in a pair of companies and over 2 million warrants in another over the course of 2015 and 2016 while director of investigation at the MACC, also in possible breach of legal limits for public servants. Azam’s brothers, the articles add, built up their own extensive business interests during his rise through the ranks at the commission.

Azam denied any wrongdoing at a January 5 press conference and said he no longer held shares in any company. He said his brother, Nasir Baki, had used his trading account to buy shares in 2015 and that those shares were transferred to his brother’s account later that year.

Hundreds of people rallied in downtown Kuala Lumpur, Malaysia’s capital, Saturday calling on Azam to step down over the allegations. Police blocked off...

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