TEMPO.CO, Jakarta - Malaysia's Prime Minister Anwar Ibrahim has started 2026 with a bold series of reform pledges, including vows to ramp up anti-corruption efforts, days after former prime minister Najib Razak was handed another major prison term in a 1MDB-linked corruption case.
In his New Year address, Anwar said his government would table bills in parliament to separate the powers of the attorney-general and public prosecutor — a long-debated initiative that proponents hope would make the judiciary more independent — as well as set up an ombudsman office and introduce a freedom of information law.
He also revived a long-standing manifesto promise to cap prime ministers at two terms, or 10 years in office.
The new push comes as Anwar faces growing doubts about whether his unity government, stitched together after an inconclusive election in 2022, can deliver big institutional change in Malaysia without alienating major powerbrokers.
Najib's UMNO Still at the Heart of Power
Anwar, an opposition leader since the 1990s, finally became prime minister some three years ago as head of a unity government. His traditional rivals were still deeply shaken by the 1MDB scandal — the theft of billions of dollars from Malaysia's sovereign wealth fund, which reached all the way to the highest political office in the country.
In 2018, anger over 1MDB helped trigger a historic electoral defeat for Najib's Barisan Nasional coalition and the United Malays National Organisation (UMNO), which had governed the country since independence in 1957.
Even so, Anwar was only able to take power after years of political wrangling by forming a broad alliance with his one-time opponents, including Najib's UMNO.
Can Anwar Afford to Go Against His Allies?
Anwar's administration has tried to show progress in at least one area long associated with graft: public procurement. In August 2025, parliament passed the Government Procurement Bill 2025, billed as a landmark attempt to impose clearer rules and accountability on how public money is spent.
Rights groups and opposition lawmakers, however, warned of loopholes and insufficient independent oversight. Many critics say that anti-corruption battles seem to be shaped by political needs, especially in parliament, as Anwar's allies come with their own legal baggage.
"There are increases in cases and investigations over corruption, but these are often seen as selectively implemented in a politically polarized context," Bridget Welsh, an honorary research associate at the University of Nottingham's Asia Research Institute Malaysia, told DW.
"The practice of corruption remains deeply entrenched, tied to patronage politics and limited reforms in areas such as political financing," she added.
Nepotism allegations against current prime minister
Proponents of the anti-corruption efforts suffered a heavy blow to morale when dozens of corruption charges against Deputy Prime Minister Ahmad Zahid Hamidi were dropped in 2023.
Zahid is also the current president of Najib's UMNO party. His support remains central to keeping Anwar's government afloat, fanning the claims that Anwar cannot afford to let investigators probe too deeply into key partners.
Anwar's People's Justice Party has also not been immune to controversy. He has faced accusations of nepotism after his daughter, Nurul Izzah Anwar, rose to a senior position within the party, with two Cabinet ministers resigning in protest last May.
In December, Anwar's former senior political secretary, Shamsul Iskandar Mohd Akin, was charged with receiving bribes to help secure mining licences in northern Borneo. Shamsul pleaded not guilty.
A New Opening After Najib's Latest Conviction
Anwar Ibrahim's administration is "genuinely committed to combating corruption, but their initiatives have been somewhat overshadowed by conflicting court cases involving elected officials," according to Norhaslinda Jamaiudin, head of the Political Science and Madani Studies department at the International Islamic University Malaysia.
The prime minister's political footing has also grown shakier in recent months. His Pakatan Harapan bloc won only one of the seats it contested in Malaysia's Sabah state in late November, which was seen as a major setback for the Anwar camp. Moreover, the row over Najib's fate has already jeopardized the ruling coalition, with UMNO youth leader Akmal Saleh last month calling on his party to break the coalition and serve as "dignified opposition" instead.
Still, the end of 2025 brought developments that supporters of anti-corruption reforms see as a chance for Anwar to act on his promises. On December 26, a court found ex-PM Najib guilty of money laundering and abuse of power in his largest 1MDB-linked case to date, involving roughly $700 million (€597.5 million) in funds.
Najib was already in jail after earlier convictions tied to the 1MDB scandal. However, his original sentence had been halved under a royal pardon process, putting him on track to be released in 2028. He then spent months pursuing a bid to serve the remainder under house arrest.
A Malaysian court rejected that request in late December, removing what many critics saw as a potential escape hatch for the ex-premier. In the latest trial, the judges sentenced him to a further 15 years in prison and imposed massive fines.
Anti-Corruption Activists Hope to Prevent Next 1MDB Outrage
For many Malaysians, Najib Razak's latest conviction was a reminder that the legal system can still deliver results, and a signal that the 1MDB era may be entering its closing chapters. Activists argued the moment should be used to install safeguards that prevent the next scandal rather than simply punishing the last one.
There have also been fresh signs of high-level scrutiny beyond 1MDB. In late December, Malaysia's anti-graft agency raided firms suspected of bribery linked to army procurement projects. Previously, the country's top army officer was placed on leave pending investigation.
On January 5, the Malaysian Anti-Corruption Commission said it had opened an investigation into 26 companies suspected of involvement in the procurement of army projects.
"For the unity government, this presents an opportunity to take decisive action against corruption," said Jamaiudin.
"In my view, comprehensive and wide-ranging reforms are essential for the current government to rebuild the trust that has been lacking for years."
The risk, analysts say, is that without a clear program, reform will be reduced to courtroom drama rather than buoyed by new rules to hold all officials accountable.
"The call to learn lessons from 1MDB is needed, but there remains a lack of a clear road map to implement the lessons," said Welsh.
"For many in Malaysia, the lesson learned is to stay or win power, rather than change processes and strengthen accountability."
Read: Malaysia Installs New Army Chief as Predecessor Faces Corruption Allegations
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