1MDB Scandal

Malaysia’s former prime minister Najib Razak is set to serve the remainder of his prison sentence under house arrest after his political party completed payment of a 50 million ringgit ($12.3 million) fine required under the conditions of a royal pardon.

The United Malays National Organisation (UMNO), which Najib once led, announced on Friday that it had completed all payment procedures at the Kuala Lumpur High Court. The money was raised through a public fundraising campaign launched to help the former leader meet the financial condition attached to his pardon.

The development clears a major obstacle to Najib’s transfer from Kajang Prison to his residence in Kuala Lumpur. His legal team confirmed that the High Court had issued a house-arrest order following settlement of the fine. However, additional administrative procedures remained before he could physically leave prison.

The case has attracted considerable attention in Malaysia because Najib remains one of the country's most influential political figures despite his conviction in the multibillion-dollar 1Malaysia Development Berhad (1MDB) scandal.

UMNO completes fundraising for Najib’s fine

UMNO Secretary-General Asyraf Wajdi Dusuki said the party had reached its fundraising target through the Najib Razak Solidarity Fund, established on September 18.

The party confirmed that the required payment had been made to the Kuala Lumpur High Court and announced that the special account created to receive donations would be closed.

UMNO thanked party members and members of the public who contributed to the campaign. The party did not disclose a detailed breakdown of the total amount collected or the identities of individual donors.

The fundraising effort became particularly important because a significant portion of Najib’s personal assets and bank accounts remain subject to freezing orders and legal proceedings. His legal team had previously indicated that arranging the payment was not entirely within his personal control.

The settlement of the 50 million ringgit fine fulfils one of the key conditions imposed under the royal pardon granted in September.

King’s conditional pardon opened the way for house arrest

Malaysia’s King Sultan Ibrahim granted Najib a conditional pardon on September 18, allowing him to serve the remaining portion of his reduced prison sentence at home.

The decision was taken by the Pardons Board for the Federal Territories of Kuala Lumpur, Labuan and Putrajaya. The arrangement allows Najib to remain under house arrest until August 23, 2028, provided he fulfils the specified conditions.

Payment of the 50 million ringgit fine was central to the arrangement. The conditions also make clear that failure to comply could result in the conditional pardon being revoked, requiring Najib to return to prison to serve the remaining sentence.

The latest court order follows the completion of the payment process. Najib’s lawyers said the order would be delivered to Kajang Prison so that the necessary transfer arrangements could proceed.

The distinction is important: house arrest does not mean that Najib has been acquitted, that his conviction has been overturned or that he is free from punishment. He is expected to continue serving his sentence, but at home rather than inside a prison facility.

The SRC International conviction behind the sentence

Najib, 73, has been imprisoned since August 23, 2022, after Malaysia’s Federal Court upheld his conviction in a case involving 42 million ringgit transferred from SRC International, a former subsidiary of the state investment fund 1MDB, into accounts linked to him.

In July 2020, he was sentenced to 12 years in prison and fined 210 million ringgit after being found guilty of criminal breach of trust, money laundering and abuse of power.

The conviction was upheld through the appeals process, and Najib began serving his sentence in August 2022.

In January 2024, Malaysia’s Pardons Board reduced his prison term from 12 years to six years and lowered the fine from 210 million ringgit to 50 million ringgit.

The September 2026 decision represented a further change in the way he would serve the remaining portion of that sentence, subject to the payment requirement.

Najib has consistently denied wrongdoing in the broader 1MDB scandal and has argued that he was made a scapegoat for a complex international financial scheme.

A separate 1MDB case remains a major legal challenge

The move towards house arrest does not resolve Najib’s other legal troubles.

In December 2025, Malaysia’s High Court found him guilty in a separate case involving the alleged misappropriation of approximately 2.3 billion ringgit from 1MDB. He was sentenced to 15 years in prison and fined 11.4 billion ringgit in that case.

Najib filed an appeal against the verdict and sentence. The separate proceedings remain legally significant and should not be confused with the SRC International case covered by the conditional pardon.

The 15-year sentence was due to begin after completion of his current reduced prison term, subject to the outcome of the appeal and any further court decisions. Consequently, the house-arrest arrangement does not automatically cancel the separate conviction or its penalties.

The distinction is central to understanding what Friday’s development means for the former prime minister: it changes where he is expected to serve the remaining portion of one sentence, not the overall status of every case against him.

Political consequences for Malaysia

Najib’s expected move to house arrest could have consequences for UMNO and Malaysia’s political landscape.

The former prime minister retains considerable influence among sections of the party’s membership. His return home could strengthen supporters who have continued to campaign for more favourable treatment, particularly as political parties prepare for the next general election.

At the same time, the fundraising campaign and the conditional pardon have raised questions about equal treatment under the law, accountability for corruption and the role of political organisations in paying financial penalties imposed on convicted leaders.

Prime Minister Anwar Ibrahim has maintained that the royal pardon does not change his government’s position against corruption and abuse of power. He has also stressed that other cases involving Najib must continue through the legal process.

The development therefore presents a delicate political challenge for the governing coalition, which includes parties with differing views on Najib’s treatment.

For now, the payment of the fine and the High Court’s order have brought Najib closer to leaving Kajang Prison. But the separate 1MDB proceedings mean that his legal and political future remains far from settled.

The key point: Najib is not being released from his conviction. He is expected to continue serving the remainder of his existing sentence under house arrest, while a separate 1MDB case remains subject to appeal.