Stunning fall of Malaysia's Najib ushers in hopes of reform

AP  |  Kuala Lumpur 

Two weeks ago, Malaysia's was supremely confident of being elected for a third term.

Instead, in a dizzying political drama, he lost an unlosable election and spiraled into ever-deepening disgrace while Malaysians are being feted for advancing democratic values against their global retreat.

In a series of humiliations, the patrician and luxury-loving and wife were banned from leaving the country; truckloads of luggage stashed with cash and valuables as well as hundreds of expensive bags were seized from their home and other properties; and anti-corruption police questioned for hours this week about a multibillion-dollar corruption scandal on his watch.

After 60 years of uninterrupted rule, many Malaysians are optimistic they are ushering in an era of reform that echoes the democratic transformation of giant neighbor two decades earlier.

The difference, they hope, is that it will continue to be accomplished without setting their multiethnic country in flames. A grouping of progressive Southeast Asian lawmakers has hailed Najib's defeat as a "bright spot amid dark times" of rising authoritarianism across the region.

The May 9 election that turfed Najib and his government despite an electoral system heavily engineered in their favor was a "quiet, dignified but defining revolution at the ballot box," said Malaysian rights

"has now set the gold standard in for bringing change peacefully even through a flawed process," said Sreenevasan, who has been appointed by the new government to a reform panel.

Najib's ouster was in large part made possible by the return to of Mahathir Mohamad, for 22 years until 2003. Spurred by anger over the alleged looting of state investment fund by associates of Najib, he emerged from retirement and joined with former political enemies to campaign against the ruling coalition.

Despite Mahathir being mocked by Najib for his old age and authoritarian record, his reputation as a statesman who transformed a Southeast Asian backwater into a modern economy helped soothe voters' fears of possible chaos under a new government. Many Malaysians have been haunted for decades by racial riots in 1969 that killed more than 200 people.

Since he was sworn in as Malaysia's seventh and the world's oldest at 92, Mahathir has wasted no time in setting up his government and tackling the country's financial problems. Former foes he once jailed have been appointed to the cabinet, including the first ethnic Chinese to hold the powerful in 44 years. also now has its first female deputy

Mahathir facilitated a royal pardon that freed reformist icon Anwar Ibrahim, who was jailed in 2015 in what he said was a conspiracy by Najib to crush his opposition alliance. Anwar, who is now the prime minister-in-waiting, was sacked by Mahathir in 1998 after a power struggle and jailed for sodomy and corruption.

The two men reconciled in 2016, united by their resolve to oust Najib.

Mahathir has said he needs one to two years to restore order before handing power to Anwar.

The top priority is getting to the bottom of the scandal.

Najib started the fund when he took power in 2009 but it accumulated billions in debts. US investigators say $4.5 billion was stolen and laundered from by his associates, some of which landed in Najib's and $27.3 million of it used to buy a rare pink diamond necklace for his wife.

A former attorney general and senior anti-graft official, who were on the verge of pressing criminal charges against Najib in 2015 before they, respectively, were sacked and fled in fear of arrest, have been brought back to help investigate.

A 1MDB panel has been set up to liaise with foreign countries on how to retrieve the laundered billions.

New said Tuesday that had conducted "an exercise of deception" over 1MDB and also misrepresented the country's financial situation to parliament. The same day, the who previously led investigations into 1MDB gave a harrowing account of how the probe was suppressed by intimidation during Najib's rule.

"will likely be one of the few Southeast Asian nations to put a former PM in jail," said Bridget Welsh, at the in Rome, who was in to observe the polls.

Najib "made the mistake of thinking it was about him rather than the office he held," she said. Former Philippine was jailed for corruption in 2007.

While the 1MDB crisis will keep officials busy, there are other worries for Mahathir and the new government.

Closer examination of the election results showed many from the country's ethnic Malay majority still didn't support Mahathir's alliance.

The conservative made major gains by winning control of two rural northeastern mainly Malay states. Collectively with the National Front, they hold 43 percent of seats in Parliament.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, May 23 2018. 11:55 IST