KUALA LUMPUR, March 9 (Reuters) - Malaysia on Thursday arrested former Prime Minister Muhyiddin Yassin and will charge him with graft, the country's anti-corruption agency said.

The Malaysian Anti-Corruption Commission (MACC) said in a statement Muhyiddin was arrested after he was questioned over an economic recovery project launched by his government.

Muhyiddin, who was prime minister for 17 months between 2020 and 2021, will be charged under laws related to abuse of power and money laundering.

The ex-premier and his party have faced graft investigations since losing to Prime Minister Anwar Ibrahim in a tightly contested election in November.

Anwar last year ordered a review of government projects worth billions of dollars approved by Muhyiddin, including COVID-19 relief programmes, alleging they did not follow proper procedures.

Muhyiddin has previously denied the accusations, describing them as a political vendetta.