Malaysia’s King on Friday (September 18, 2026) granted jailed 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 to a future meeting.

It marked an unprecedented use of house arrest as a form of royal clemency in Malaysia and could renew debate over royal powers, the rule of law and the treatment of Malaysia’s most prominent corruption convict.

A statement issued by the Legal Affairs Department under the Prime Minister’s office said Sultan Ibrahim Iskandar has granted a “conditional pardon” for Najib during a Pardons Board meeting. Najib will be allowed to serve the remainder of his prison term under house arrest until August 23, 2028, if he pays the 50 million ringgit fine ($12 million) imposed by the court, it said.

The statement said Najib must also follow conditions set, failing which the pardon will be forfeited. No details were provided.

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

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) channelled into his bank accounts from SRC International, a former unit of 1MDB.

In January 2024, a Pardons Board chaired by the then-king halved his sentence to six years and reduced his fine to 50 million ringgit.

Najib has maintained the previous king, Sultan Abdullah Ahmad Shah, also issued an addendum order allowing him to serve the remainder of his sentence under house arrest. But the High Court ruled that the alleged house arrest order was not enforceable because it had not been raised or discussed by the Pardons Board at its January 2024 meeting.

The house-arrest order also raises questions about a separate graft sentence for Najib.

In December 2025, Najib was found guilty for abuse of power and money laundering related to over USD 700 million channelled 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.

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.

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

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 Organisation, which is now part of Prime Minister Anwar Ibrahim’s unity government that took power after the 2022 elections.