Former Malaysian prime minister Najib Razak has settled the 50 million ringgit fine that is a condition for his release from jail to continue his sentence under house arrest.

It is not yet clear, however, whether house arrest will be permitted.

The United Malays National Organisation (UMNO), of which Najib is a former president, raised the money to pay the fine.

Malaysia’s transport minister, Anthony Loke, said that he would resign if Najib was released from jail.

A statement from the attorney-general’s chambers (AGC) specified that “execution of the sentence” at Najib’s home had been suspended while the AGC studied interpretations of the plea-bargaining order in the case.

The AGC said the implementation of Najib’s house arrest should be temporarily deferred and that, during this period, “the former prime minister’s detention status must remain at his current place of confinement”.

Given that the issues raised involve complex legal questions – with implications for the implementation of a royal pardon and court orders – and represent an unprecedented situation, the AGC said it was of the view that “a clear and definitive legal clarification must be obtained before any further enforcement action is taken”.

Anthony Loke said today: “The moment Najib returns home, my resignation will take effect immediately. This is the clear position I have maintained.

He added: ““If he [Najib] sets foot in his home tonight, my resignation will take effect tonight.

“I will submit an additional letter to the prime minister as I have already sent him my resignation letter.”

Loke has been transport minister since December 2022, having previously held the position from 2018 to 2020 under the then prime minister Mahathir Mohamad. He has been transport minister during negotiations with the maritime exploration company Ocean Infinity about its search for the missing Malaysia Airlines plane MH370, which disappeared on March 8, 2014, with 239 people on board.

The AGC said that the implementation of house arrest for Najib should be temporarily deferred until further review “and clarification regarding the interpretation of the conditional pardon order – as well as the implications of an ‘order of discharge’ – were resolved.

‘Interpretations require examination’

Legal questions had arisen regarding the interpretation of the phrase “to serve the remainder of the sentence under house arrest until 23 August 2028, subject to the payment of a RM50 million fine”, and its implications for the remaining term of imprisonment in the SRC International case, the AGC said.

Two interpretations required further examination, it added.

“Firstly, that the payment of the RM50 million fine satisfies only the fine component of the sentence, while the prison sentence for the SRC International case remains in effect until August 23, 2028.

“Based on this interpretation, house arrest serves as an alternative method or location for serving the remainder of the prison sentence, rather than constituting the termination of the prison sentence itself.”

The AGC added: “Secondly, the payment of the RM50 million fine is a condition that enables the pardon to take full effect, the implication being that the entire sentence for the SRC International case – including the term of imprisonment – is deemed to have been fully served.”

The temporary deferment was not intended to challenge or set aside the royal decree (*titah*) of the Yang di-Pertuan Agong [the king], the AGC said.

Rather, it was a measure to ensure that the decree – along with the relevant court orders – “is implemented accurately, in an orderly manner, and in accordance with the actual legal position”.

The AGC said the matter also concerned the legal effect of the ‘Order of Discharge on Payment of Fine’ of November 6, 2026, issued by the High Court of the Federal Territory of Kuala Lumpur following the recording of the RM50 million fine payment.

The order mandates Najib’s immediate release, while simultaneously stipulating that the remainder of his sentence must be served under house arrest until August 23, 2028, “pursuant to the Order for Conditional Pardon”.

The status of the remaining prison sentence for the SRC International case had implications for the execution of the prison sentence imposed on Najib in the 1Malaysia Development Berhad (1MDB) case, the AGC said.

The AGC noted that a court order stipulated that the sentence for the 1MDB case should commence only after the completion of the prison sentence for the SRC International case.

“This matter also requires examination, taking into account the application for a stay of execution in the 1MDB case, which was dismissed by the High Court on 14 October 2026,” the AGC said.

Najib, who was Malaysia’s prime minister from 2009 to 2018, was jailed in August 2022 after the Federal Court upheld his convictions for abuse of power, criminal breach of trust, and money laundering involving RM42 million in funds from SRC International.

He was sentenced to 12 years in prison and fined RM210 million.

In January 2024, a royal pardon halved his prison term and reduced the fine to RM50 million.

In September of this year, Najib was granted a further conditional pardon, allowing him to serve the remainder of his sentence under house arrest until August 23, 2028, contingent upon payment of the RM50 million fine and compliance with stipulated conditions.

On Dec 26, 2025, the High Court sentenced Najib to 15 years in prison and fined him RM11.387 billion (about 2.8 billion $US) after finding him guilty of four counts of abuse of power and 21 counts of money laundering involving RM2.28 billion in 1MDB funds that were deposited into his AmBank account between February 2011 and December 2014.

Today, Malaysia’s Home Minister, Saifuddin Nasution Ismail, gazetted Najib’s Langgak Duta residence as a prison under the 1995 Prison Act. This is a legal step towards allowing him to serve his sentence under house arrest.
 

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