International rights and political groups have condemned the arrest of charging of Penang Chief Minister Lim Guan Eng for two counts of corruption.

"The case of Lim Guan Eng and the many legal actions against the opposition raise growing concern about the independent of the judiciary," said Progressive Alliance in a statement on Friday.

Progressive Alliance is a group of 130 political parties from 80 countries.

It said while wrongdoing and abuse of power must be prosecuted, it must be done in a fair and transparent manner.

"The selective and politically motivated prosecution of members of the opposition has a dramatic detrimental effect on people’s trust in the political and judicial system in Malaysia," it said.

Simlarly, Network of Social Democracy in Asia (Socdem Asia) suspects the charging is "another episode in a series of strategic moves by the ruling party and government to cripple the opposition".

It said this is especially after the jailing of PKR de facto Anwar Ibrahim on "highly suspicious grounds", and prosecution of other political activists.

"We urge the Malaysian people to continue to be vigilant and to persist in its struggle for meaningful democracy and human rights," it said in a statement on its website.

Lim was on Thursday charged with abusing his power and conflict of interest related to the purchase of a RM2.8 million bungalow on Jalan Pinhorn, Penang, allegedly at below market price.

He faces up to 20 years in jail or a fine of five times the value of the gratification.

He pleaded not guilty and was released on bail of RM1 million.

Phang Li Koon, who sold the bungalow to Lim, claimed trial to abetting the chief minister. She was released on bail of RM200,000.