Malaysia’s 1MDB – Political Dynamics between Corruption and Anti-corruption

Abstract

1Malaysia Development Berhad (1MDB) was established in 2009 by then Malaysian Prime Minister Najib Razak, ostensibly to make strategic investments and attract foreign direct investments. The US Justice Department's actions in 2016 to seize more than $1 billion associated with 1MDB blew the simmering corruption scandal wide open. The repercussions were felt in Malaysia’s 2018 general elections when the long-ruling UNMO party was swept aside. However, the new Malaysian government found itself having to deal with a cleaned-out and debt-laden 1MDB. This case study traces the events in the aftermath of the discovery of missing funds at 1MDB. It also examines the tensions and dynamics across public sector institutions, civil society and political regimes that propelled anti-corruption efforts in Malaysia.