Najib's royal predicament

Critics of Prime Minister Najib Razak called it a rebuke of the embattled leader, which prompted his allies to deny that he had lost the support of the monarchs, who remain influential despite only being figureheads.

The most telling response was that of newly appointed Attorney-General Apandi Ali, who insisted that investigations were going full steam ahead, when for two months he has not contradicted the anti-graft agency’s claim that a high-level task force looking into 1MDB had been disbanded.

The central bank, which is part of this on-off, on-again task force, then revealed that its investigations showed 1MDB had given incorrect information about US$1.83 billion in overseas investments, and ordered the firm – whose advisory chief is the embattled prime minister – to repatriate the sum. But the bank said it was up to the public prosecutor to bring charges.

1MDB, struggling under a mountain of debt, has so far resisted the central bank’s order, and it remains to be seen how the authorities – who are obviously at odds with each other – will enforce the ruling.

The attorney-general was appointed three weeks after it was revealed that US$700 million allegedly linked to 1MDB had entered Najib’s personal accounts. The Malaysian Anti-Corruption Commission has said the funds were donations by unnamed supporters in the Middle East.

It is difficult to gauge what impact the monarchs’ statement will have on the ground, but it has clearly shaken those at the top, and resulted in more questions arising over 1MDB transactions. The pressure on Najib to resign grows, but it will take more than pronouncements from largely ceremonial royals to unseat the prime minister.