Malaysia’s Najib Banks on Cash Handouts as Election Date Is Set

Ruling party has promised to expand payout program to cover half the country

KUALA LUMPUR, Malaysia—Malaysia’s prime minister is promising higher cash handouts to almost half of the country’s population if his ruling coalition wins re-election next month, a move that offers the prospect of short-term stimulus, but risks long-term reliance on such payouts.

Malaysians are set to go to the polls on May 9, in a vote that will test whether Prime Minister Najib Razak can overcome the effects of the problems at state investment fund 1Malaysia Development Bhd., or 1MDB, that have rocked his administration...