Politics and Economics : The 1MDB Scandal and Corruption in Malaysia

In 2015, allegations of mismanagement of funds in the state investment fund 1Malaysia Development Berhad (1MDB) surfaced. The scandal has triggered a national and international ‘crisis of confidence' undermining trust in the current political regime to allow an impartial and transparent investigation into this matter. Criticisms, including from the former Prime Minister Mahathir Mohamad, have added to the chorus of mounting pressure on then Prime Minister, Najib Razak, amid reports of a paper trail tracing millions of dollars into his personal bank account. This chapter analyses the relationship between politics, economics and law which, albeit to varying degrees, has been a cornerstone of Malaysia's government for decades, using the latest 1MDB scandal as a case study. The chapter will focus on the national dimensions of the scandal, in particular how the government-critical media unearthed and reported on the scandal; followed by how national agencies reacted and started to investigate those allegations and how politicians, parties and society reacted to the scandal. While de facto national investigations have come to a standstill, the international investigations into the 1MDB scandal are in full swing. However, it remains to be seen whether those investigations will have any impact in Malaysia