Malaysia’s king allows former leader Najib to serve rest of his graft sentence under house arrest

KUALA LUMPUR, Malaysia (AP) — Malaysia’s king on Friday granted former Prime Minister Najib Razak a rare royal clemency, allowing him to serve the remainder of his prison term for graft under house arrest.

The decision came at a suddenly convened Pardons Board meeting, a week after the board deferred Najib’s latest clemency application. It marked an unprecedented use of house arrest as a form of royal clemency in Malaysia and could renew debate over the rule of law and the treatment of Malaysia’s most prominent corruption convict.

Najib, 73, has been imprisoned since August 2022, when Malaysia’s top court upheld his conviction in a case linked to the multi-billion dollar looting of the state investment fund 1Malaysia Development Berhad.

Najib set up the 1MDB development fund shortly after he took office in 2009. Investigators say at least $4.5 billion was stolen from the fund and laundered by Najib’s associates through layers of bank accounts in the U.S. and other countries. The funds were allegedly used to finance Hollywood films and extravagant purchases that included hotels, a luxury yacht, art and jewelry.

He was originally sentenced to 12 years in prison and fined 210 million ringgit ($51.5 million) in 2020 for abuse of power, criminal breach of trust and money laundering involving 42 million ringgit ($10.3 million) channeled into his bank accounts from SRC International, a former unit of 1MDB. In January 2024, the Pardons Board chaired by the then-king halved his sentence to six years and reduced his fine to 50 million ringgit.

A government statement said Friday that Sultan Ibrahim Iskandar granted a “conditional pardon” for Najib. He will be allowed to serve the remainder of his prison term under house arrest until Aug. 23, 2028, if he pays the 50 million ringgit fine ($12 million) imposed by the court, it said.

The prime minister defends the royal clemency

Prime Minister Anwar Ibrahim said the constitution provides for the king’s absolute powers and urged the public to accept the decision. He said it wouldn’t weaken the government’s fight against graft and abuse of power.

“I want to stress that the principle of the rule of law remains intact. Our commitment to taking action against all cases of corruption is not affected, and this does not mean the country should bow to practices of embezzlement and corruption,” he said.

Former Economy Minister Rafizi Ramli, who now heads an opposition party, urged the government to explain the full conditions of Najib’s house arrest to address the intense public disappointment over the deep wounds of the 1MDB scandal.

The Home Ministry hasn’t released details of Najib’s house arrest, and whether it would apply to a separate sentence for graft.

Najib’s fall triggered a national scandal

In December 2025, Najib was found guilty of abuse of power and money laundering related to over $700 million channeled into his bank accounts from 1MDB, in his main trial tied to the fund. He was sentenced to another 15 years in prison and fined 11.4 billion ringgit ($2.8 billion), which is to take effect after his existing sentence ends. He is appealing that conviction.

A national outrage over the 1MDB scandal led to the historic 2018 election defeat of the party that had governed Malaysia since independence from Britain in 1957.

Despite his conviction, Najib still holds clout in his party, the United Malays National Organization, which is now part of Anwar’s unity government that took power after the 2022 elections.

House arrest had been discussed as part of broader criminal-justice reforms in Malaysia. In 2024, the government said proposed legislation allowing home detention in certain circumstances was aimed at reducing prison overcrowding and recidivism, not designed specifically for Najib.