Malaysia’s former prime minister Najib Razak is preparing to begin serving the remainder of his prison sentence under house arrest, pending payment of a court-ordered fine, his legal team said. Najib, who was prime minister from 2009 to 2018, was convicted in connection with the misappropriation of billions of dollars from 1Malaysia Development Berhad (1MDB), a state investment fund he co-founded and oversaw during his tenure.
Najib’s lawyers indicated that fulfilling the requirement to pay a 50 million ringgit ($12 million) fine may be complicated, as a large portion of his assets, including bank accounts and properties, remain frozen or subject to government enforcement actions. His legal team also highlighted that the former premier has been profoundly affected by the public support he has received.
The decision to allow Najib to transition to house arrest came following a royal pardon granted by Malaysia’s King Sultan Ibrahim on September 18. This marks the second such pardon issued to Najib related to his convictions in the 1MDB scandal. The pardon permits Najib to serve the remaining duration of his sentence under house arrest until August 2028.
Malaysia’s Prisons Department and the Home Affairs Ministry have stated they are awaiting formal written confirmation of the pardon before taking steps to implement it. Under Malaysian law, the Home Affairs Minister may designate Najib’s residence as a place of imprisonment for the duration of his sentence.
The UMNO party president, Ahmad Zahid Hamidi, announced plans to launch a fundraising drive among party members and supporters to assist Najib in paying the required fine. As of Saturday, local reports indicated that nearly 1 million ringgit had been raised toward this effort.
Najib’s legal troubles stem from extensive investigations into 1MDB, which was established in 2009 to facilitate economic development through investment projects and joint ventures. The US Department of Justice described the 1MDB case as their largest kleptocracy probe, estimating that $4.5 billion was diverted into offshore accounts and shell companies, some linked to financier Jho Low, who helped set up the fund and whose current whereabouts are unknown.
Malaysian authorities assert that Najib unlawfully received more than $1 billion traced to 1MDB. The scandal ignited public outrage and contributed to Najib’s electoral defeat in 2018. Following that, he faced multiple charges, including abuse of power and money laundering. In December 2025, he was convicted and sentenced to 15 years in prison with a $2.8 billion fine, and has filed an appeal.
Najib’s legal battles also include a 2020 conviction related to illegal receipt of funds from SRC International, a former 1MDB subsidiary, leading to a 12-year prison sentence and substantial fines. These convictions were upheld on appeal, and Najib began serving this sentence in August 2022. In 2024, a pardons board led by a former king reduced his sentence and financial penalties.
The recent pardon and transition toward house arrest have sparked tensions within Malaysia’s multi-party government, which includes both Najib’s UMNO party and Prime Minister Anwar Ibrahim’s coalition. Disagreements have grown over the government’s handling of corruption-related matters, illustrating the ongoing political complexities surrounding the 1MDB case and Najib’s legacy.