Key Points
Anthony Loke resigned as transport minister on September 19 in protest over Najib's house arrest pardon.
Najib must pay RM50 million as a condition but claims his frozen assets prevent payment.
The DAP kept other ministers in government to prevent political instability and coalition collapse.
Legal experts question the constitutionality of house arrest, which has no statutory basis in Malaysian law.
Anthony Loke, Malaysia’s transport minister and secretary-general of the Democratic Action Party, resigned from cabinet on September 19 in protest against the conditional pardon granted to former prime minister Najib Razak. The pardon allows Najib to serve his remaining sentence under house arrest until August 23, 2028, subject to a RM50 million fine. Loke’s exit signals serious strain within Prime Minister Anwar Ibrahim’s coalition, though the DAP will keep other ministers in government to prevent political instability.
Why Loke stepped down
Loke announced his resignation after a three-hour Democratic Action Party central executive committee meeting on Saturday. He told reporters the party could not accept Najib serving his sentence at home rather than in prison. “We find it difficult to accept,” Loke said, “not just for us, but many Malaysians.” The DAP, the largest party by parliamentary seats in Anwar’s coalition, decided Loke’s individual resignation would register the party’s objection without destabilizing the government.
The pardon and its conditions
Sultan Ibrahim, Malaysia’s king, granted the conditional pardon on Friday following a meeting of the Federal Territory Pardon Board. Najib, 73, has been imprisoned since August 2022 over abuse of power related to SRC International, a former unit of state investment fund 1MDB. He was convicted of siphoning 42 million ringgit (US$10.3 million) from the fund. The pardon requires him to pay RM50 million, roughly US$12.26 million, as part of the house arrest arrangement.
Najib claims he cannot pay the fine
Najib’s legal team released a statement on Sunday saying the required payment “does not lie in his own hands.” The statement noted that a significant portion of Najib’s assets, bank accounts, and properties remain frozen under government enforcement orders and are not within his sole control. His lawyers said he is “presently taking advice and considering his options” on how to meet the payment condition. Meanwhile, a solidarity fund launched by his party UMNO raised more than RM634,000 within three hours of its launch and reached RM1 million by Saturday morning, with many contributors giving as little as RM10 and RM50.
Legal and political backlash
The G25 group, a civil society organization, called for the attorney-general’s written opinion on the house arrest decision to be made public. The group noted that Justice Alice Loke previously ruled in a High Court case that a house arrest order was incapable of execution because Malaysia has no legal provision for such a mechanism. G25 questioned what legal authority now exists to support the pardon board’s decision and called for the board to revisit the decision at its earliest meeting. Legal experts have described the arrangement as an unprecedented use of house arrest in Malaysia’s criminal justice system.
Final Thoughts
Loke’s resignation reflects deep divisions within Anwar’s coalition over the pardon, but the DAP’s decision to keep other ministers in cabinet suggests the government will survive the immediate crisis. The unresolved payment condition and legal questions surrounding the house arrest mechanism could fuel further political tension in the coming months.
FAQs
Loke resigned in protest against the conditional pardon granted to former PM Najib Razak, which allows him to serve his jail term under house arrest instead of in prison.
No. Only Loke resigned as an individual minister. The DAP kept other ministers and deputy ministers in cabinet to maintain political stability under Prime Minister Anwar Ibrahim.
Najib must pay RM50 million, approximately US$12.26 million, as a condition of his house arrest pardon. His legal team says he cannot currently pay this amount.
Malaysia has no legal provision for house arrest as a criminal penalty. Justice Alice Loke previously ruled such an order incapable of execution, raising questions about the pardon board’s authority.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
About Author

Huzaifa Zahoor
Co FounderHuzaifa Zahoor is the engineer who built Meyka. He has spent years writing Python, training AI models, and building data pipelines specifically for financial markets. His technical articles have reached over 30,000 readers on Medium, so he knows how to make complex things easy to follow. If this article touches on how the tools work, he is the person who actually built them.
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