The Dynamics of the 1MDB Scandal and Political Change in Malaysia

Abstract

The 1MDB scandal marked a dramatic turning point in the landscape of Malaysian politics. The scandal led to the first horizontal change of government between the ruling and opposition parties in 61 years. Najib Razak became the first prime minister to be imprisoned. The tsunami caused by the 1MDB scandal is currently ongoing. The 1MDB scandal has spread the perception that corruption is a pillar of Malaysia's political culture. Under BN's long-term hegemony, crony capitalism was established as an informal system, leading to a kleptocracy in which wealth was monopolized. As Anwar Ibrahim, a symbol of reformasi, became prime minister in the 15th general election, there was great hope that reform would take place along with political and economic stability in Malaysia. The reform results, however, are insufficient due to complex reasons such as the failure to institutionally resolve the excessive concentration of power, the coexistence of symbolic figures of reform and corruption in the unity government and the need for UMNO’s influence to maintain power. The tsunami of the 1MDB scandal is still driving political change in Malaysia and establishing itself as a key variable that determines the success or failure of Anwar and the unity government.