KUALA LUMPUR, Malaysia: Malaysia's King Sultan Ibrahim Iskandar on September 18 granted former Prime Minister Najib Razak a rare form of royal clemency, allowing him to serve the rest of his prison sentence for corruption under house arrest.

The decision was made at a meeting of the Pardons Board that was called suddenly, a week after the board had delayed Najib's latest request for clemency.

It was the first time house arrest had been used as a form of royal clemency in Malaysia. The decision could lead to renewed debate over the rule of law and the treatment of the country's most prominent corruption convict.

Najib, 73, has been in prison since August 2022, when Malaysia's top court upheld his conviction in a case linked to the theft of billions of dollars from the state investment fund 1Malaysia Development Berhad, known as 1MDB.

Najib established the fund shortly after becoming prime minister in 2009. Investigators said at least US$4.5 billion was stolen from 1MDB and moved through a series of bank accounts in the U.S. and other countries. The money was allegedly used to finance Hollywood films and buy hotels, a luxury yacht, artwork, and jewelry.

In 2020, Najib was sentenced to 12 years in prison and fined 210 million ringgit ($51.5 million) for abuse of power, criminal breach of trust and money laundering. The case involved 42 million ringgit ($10.3 million) that was transferred into his bank accounts from SRC International, a former unit of 1MDB.

In January 2024, the Pardons Board, chaired by the then king, reduced his prison sentence by half to six years and cut his fine to 50 million ringgit.

A government statement on September 18 said Sultan Ibrahim had granted Najib a conditional pardon. Najib will be allowed to serve the rest of his sentence under house arrest until August 23, 2028, if he pays the 50 million ringgit fine, now worth about $12 million.

Prime Minister Anwar Ibrahim said the constitution gives the king broad powers and urged the public to accept the decision. He said the decision would not weaken the government's efforts to fight corruption 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 leads an opposition party, called on the government to explain all the conditions of Najib's house arrest. He said this was needed to address public disappointment over the 1MDB scandal.

The Home Ministry has not released details about the house arrest or said whether it would also cover a separate prison sentence for corruption.

In December 2025, Najib was found guilty of abuse of power and money laundering involving more than $700 million transferred from 1MDB into his bank accounts. He was sentenced to another 15 years in prison and fined 11.4 billion ringgit ($2.8 billion). That sentence should begin after his existing sentence ends. Najib is appealing the conviction.

Public anger over the 1MDB scandal contributed to the historic defeat in the 2018 election of the party that had ruled Malaysia since independence from Britain in 1957.