Malaysia Shaken! Plot Twist in 1MDB Case as King Grants Pardon to Najib Razak
Malaysia is in shock following the announcement that Malaysia’s King, Sultan Ibrahim, granted a conditional pardon to former Prime Minister Najib Razak on Friday (18/09/2026). The decision allows Najib to serve the remainder of his sentence under house arrest until 23 August 2028, rather than remaining in prison.
The decision was announced by the Legal Affairs Department under the Prime Minister’s Department of Malaysia, following a meeting of the Federal Territory Pardons Board led by Sultan Ibrahim. “His Majesty Sultan Ibrahim has agreed to grant a conditional pardon to Najib Razak, allowing him to serve the remainder of his sentence under house and house arrest until 23 August 2028,” the Malaysian government stated, as reported by Reuters.
Najib served as Malaysia’s Prime Minister from 2009 to 2018. The 73-year-old was sentenced to prison after being found guilty in corruption cases related to the 1Malaysia Development Berhad (1MDB) sovereign wealth fund. Najib has repeatedly denied any wrongdoing, claiming he was made a scapegoat in a complex scheme involving the embezzlement of billions of dollars. In the SRC International case, a former unit of 1MDB, Najib was previously sentenced to 12 years in prison. However, in 2024, that sentence was reduced to six years, and his fine was lowered from RM210 million to RM50 million.
Under the latest decision, Najib may serve his remaining sentence at home, provided he meets the conditions of the pardon, which include paying a fine of RM50 million (approximately Rp216 billion). If the conditions are not met, the pardon can be revoked, and Najib must return to prison to serve the rest of his sentence. Najib had previously sought legal avenues to serve his sentence at home, but the Malaysian High Court rejected his application in December 2025, leading him to file an appeal in April 2026.
The 1MDB scandal remains a major focal point, involving a massive financial scandal within Malaysia’s sovereign wealth fund. According to US investigators, approximately US$4.5 billion from 1MDB was allegedly misappropriated in the scheme, with over US$1 billion said to have flowed into accounts linked to Najib. Najib was also found guilty in a separate case related to 1MDB in December 2025, receiving a 15-year prison sentence and a fine of approximately US$2.8 billion, a verdict he is currently appealing.
The decision to grant house arrest is poised to become a sensitive political issue for Prime Minister Anwar Ibrahim’s administration. The UMNO party, which was previously led by Najib and is currently part of Anwar’s governing coalition, maintains significant political influence. Conversely, the Pakatan Harapan group had previously opposed any further leniency for Najib.
Syaza Shukri, a political analyst from the International Islamic University Malaysia, told Reuters that the decision could benefit UMNO ahead of the next election. She also noted that the move could increase pressure on Anwar’s government. Najib remains an influential figure within UMNO despite his imprisonment. While Malaysia’s next election is not scheduled until early 2028, Anwar has previously indicated that an early election could be considered if cracks in his coalition deepen.