[ASEAN Column] The Fall of Malaysia's Largest Party and Former Prime Minister Najib Razak

The trial of Najib Tun Razak, former Prime Minister of Malaysia, which has lasted for 14 months, is now approaching its final conclusion next month. This trial, which led to the downfall of Malaysia's largest political party, has attracted global attention. Whether former Prime Minister Najib will be found guilty in the final hearing, and if so, how many of the 42 charges will result in convictions, has become a focal point of interest for the Association of Southeast Asian Nations (ASEAN).

Najib, who gained popularity among Malaysians with his impressive career and charisma, faced a downfall due to the scandal involving the investment company 1MDB.

Born into a prominent political family and having worked as a businessman, Najib launched the "1Malaysia" campaign in 2008. This campaign was literally a program aimed at uniting Malaysia strongly through ethnic harmony, national integration, and effective government management. Thanks to this campaign, which actively utilized social media to reach government officials and citizens alike, the ruling party UMNO succeeded in maintaining its 60-year long-term rule in 2009, and Najib was able to assume the prime ministership. Showing a distinct character compared to existing politicians, he immediately expanded 1Malaysia into a national campaign while promoting it as part of economic development. To this end, in July 2009, he established 1MDB, a government-led state-owned investment company under the Ministry of Finance. The economic development goals and focus led by 1MDB were very ambitious. It sought to actively form partnerships with foreign countries and expand foreign direct investment (FDI) to develop energy, real estate, tourism, and agribusiness sectors, promising Malaysia's economic advancement.

Najib seemed to be on a smooth path, successfully winning re-election in 2013. However, in 2015, a whistleblower from a Swiss bank handling 1MDB-related matters handed over 200,000 documents on public fund embezzlement to The Wall Street Journal (WSJ) and the editor of the Sarawak Report, exposing internal corruption to the public. According to the documents, 1MDB was already burdened with $11 billion (approximately 13.18 trillion KRW) in debt in 2015 alone. Furthermore, evidence of extensive corruption was found in the documents, including $700 million transferred from 1MDB accounts to Najib's personal accounts. The misuse of public funds escalated beyond a domestic Malaysian issue into a global scandal. Numerous national financial institutions and international investment banks (IBs) were directly or indirectly involved. It was revealed that Singapore bank accounts, companies registered in the British Virgin Islands, and global firms like Goldman Sachs were implicated in Najib's 1MDB scandal.

Najib and the Malaysian Anti-Corruption Commission (MACC) claimed innocence regarding this case, and the largest embezzlement scandal seemed to quiet down. However, lawsuits from politicians within Najib's own party and facts uncovered during the search of Najib's residence turned the situation into an even bigger scandal. Thousands of high-end handbags, watches, and jewelry were found at his home. The evidence of corruption was so vast that even five trucks were insufficient to move it. Because of this, Najib's wife, Rosmah Mansor, was dubbed Malaysia's Imelda (referring to Imelda Marcos, wife of the former Philippine dictator Ferdinand Marcos).

Due to these corruptions, UMNO suffered a crushing defeat in the 2018 election, handing over the prime ministership to the opposition coalition Pakatan Harapan (PKR) for the first time in 60 years. The role of opposition parties like Bersih (meaning "clean" in Malay) and civil society organizations such as the Coalition for Clean and Fair Elections greatly contributed to this election outcome.

Najib, charged with 42 counts including breach of trust, embezzlement of public funds, and violations of anti-corruption laws, embodies many implications through his spectacular scandal. This unprecedented scandal reveals how a politician with a brilliant career and businessman background used political power and the global economic network to build a massive economic empire solely for himself. The final verdict of Najib, who brought change even to the politically conservative Malaysia, is worth our attention.

Kim Hye-jin, Professor of Political Science and International Studies, National University of Singapore