Najib’s unexplained sentence reduction hurts investor confidence, says think tank head

GIFT CEO Chandran Nair says an explanation is needed to overcome the perception that the pardon has undermined the judicial process.

PETALING JAYA: A lack of transparency in the pardon process that saw former prime minister Najib Razak’s sentence in the SRC International case commuted at the end of last month may hurt investor confidence, the head of a leading think tank in Asia said.

Chandran Nair, founder and CEO of the Hong Kong-based Global Institute For Tomorrow (GIFT) said foreign investors are bound to question the integrity of Malaysia’s institutions as a result.

“The implications are far and wide. This is another nail in the coffin for trust.

“I’m saddened that our reputation has taken a beating. After all, there are so many Malaysians who work hard to keep the country afloat despite all of this,” he told FMT.

Chandran, whose organisation focuses on reshaping societal norms and encouraging leadership development, said the failure of the Federal Territories Pardons Board to justify its decision would only amplify negative views towards Malaysia.

“The sentiments I’ve heard in Hong Kong and in Singapore (suggest) there is great concern about the slide in the value systems, particularly in terms of the institutions of the country,” he said.

He said foreign investors appear to be extremely nervous about putting money in Malaysia.

“I know investors in Hong Kong and Europe, who are always saying, ‘How can you trust the contract you signed’, particularly given our (Malaysia’s) system whereby you need local partners,” he said.

Chandran notes the position taken by government leaders, saying the pardons board does not have an obligation to communicate its reasons and calling for its decision to be respected.

“But it’s their duty of care to tell us what happened. Right now, no one has heard a good reason, so everyone’s confused,” he said.

Najib, was convicted by the High Court in July 2020 and sentenced to 12 years’ imprisonment and a fine of RM210 million for abuse of power, criminal breach of trust and money laundering.

He began serving his jail term on August 23, 2022, after both the Court of Appeal and the Federal Court rejected his appeals. He filed his petition for pardon ten days later.

On Feb 2, the Federal Territories Pardons Board issued a brief statement announcing that the former prime minister’s sentence had been halved and his fine reduced from RM210 million to RM50 million. No reasons were given for the decision.

The decision was widely criticised, including by politicians such as Pasir Gudang MP Hassan Karim, former health minister Khairy Jamaluddin, non-government organisation Aliran, the G25 group of retired senior civil servants, political party Muda and the public, all of whom called for transparency and accountability.

In response, Prime Minister Anwar Ibrahim and deputy prime minister Ahmad Zahid Hamidi urged the public to trust the pardons process and respect the board’s decision.

However, Chandran said there are many aspects of the decision that demand answers.

“Actually, the people trusted the legal process. They trusted the judicial process. It (the case) went through the three highest courts in the country.

“Now what is being done seems to be something that’s undermining it. If there’s a very good reason for all of this, please tell us,” he said.

Chandran said respect for the nation’s leaders ought to be premised on what they do and how they act, not merely because they hold high office.

“Our leaders and politicians should understand that they should respect the people. The people of this country deserve an answer.

“This is not some little case in Klang. This is an international case involving some of the leading banks in the world. They have a duty to respond,” he said.

Chandran said there are features in the case that warrant an explanation.

Has the convicted person showed remorse and is the decision in the national interest, he asked.