Executive Summary

Key insights and market outlook

Former Malaysian Prime Minister Najib Razak has been sentenced to 15 years in prison and fined 11.39 billion ringgit for abuse of power and money laundering in the 1Malaysia Development Berhad (1MDB) scandal ¹

. The verdict marks a significant development in one of Malaysia's largest financial scandals, involving the alleged theft of US$4.5 billion from the state-owned investment fund established in 2009 ².

Full Analysis

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Deep Dive Analysis

Malaysia's Former PM Najib Razak Sentenced in 1MDB Scandal

Significant Verdict in High-Profile Case

Former Malaysian Prime Minister Najib Razak received a 15-year prison sentence and a substantial fine of 11.39 billion ringgit on Friday, December 26, 2025, for his role in the massive 1MDB financial scandal ¹

. The verdict was delivered in one of the most significant legal developments in Malaysian history, relating to the alleged misappropriation of billions from the state-owned investment fund.

Scale of the 1MDB Scandal

The 1MDB fund was established in 2009 during Najib's tenure as Prime Minister, with the initial purpose of promoting economic development ²

. However, investigations by Malaysian and US authorities revealed that at least US$4.5 billion was misappropriated from the fund ². More than US$1 billion is believed to have flowed into accounts linked to Najib ².

Legal Proceedings and Implications

The high court in Malaysia is currently deliberating on whether to convict Najib on four corruption charges and 21 money laundering charges related to the illegal transfer of approximately 2.2 billion ringgit (US$539 million) from 1MDB ²

. The court's acknowledgment of the undeniable links between Najib and fugitive financier Jho Low, accused of playing a central role in the massive fraud, was particularly significant in the proceedings ².

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