In a stunning fall from grace, former prime minister Najib Abdul Razak has announced his resignation as head of Umno and the once-ruling BN coalition.

He made the announcement during a press conference at Menara Dato Onn in Kuala Lumpur today.</s>Image copyright AFP Image caption Najib Razak and his wife Rosmah Mansor had planned to go on an overseas holiday

Ex-Malaysian Prime Minister Najib Razak has been banned from leaving the country, immigration officials say.

It comes after Mr Najib said that he and his wife were planning to go on an overseas holiday on Saturday.

Earlier this week, Mr Najib's long-ruling Barisan Nasional coalition suffered a shock electoral defeat.

Mr Najib has been accused of diverting $700m (£517m) from a state investment fund in 2015, but has since been cleared by the authorities.

However Malaysia's new Prime Minister Mahathir Mohamad, who at 92 became the world's oldest elected leader when he was sworn in on Thursday, has said that Mr Najib could face a fresh investigation if sufficient evidence supports it.

Mr Mahathir has said that investigations will take place into alleged corruption in the country, including the case involving the state investment fund.

Image copyright Reuters Image caption Mahathir Mohamad said he believed Malaysia "can get most of the 1MDB money back"

Mr Mahathir stood down as prime minister 15 years ago, but came out of retirement and defected to the opposition to take on and beat former protégé Najib Razak.

He appears to be making good on a promise, made during his election, to release imprisoned former political leader Anwar Ibrahim.

Mr Anwar's daughter, Nurul Izzah, on Saturday confirmed reports that her father will "receive a full royal pardon" and is due to be released on Tuesday.

Mr Anwar was once Mr Mahathir's deputy, but was jailed on widely-criticised charges of sodomy and corruption amid bitter tensions between the two men.

How has Mr Najib reacted to his travel ban?

In a tweet (in Malay), he said he had been informed by the immigration authorities that he and his family would not be allowed to travel abroad.

He gave no reasons for the authorities' decision, but said he would abide by it.

He has also announced he is quitting as chairman of the Barisan Nasional coalition and as president of his United Malay National Organisation party.

Mr Najib, 64, had said earlier that he and his wife Rosmah Mansor would go on a holiday on Saturday.

It is believed they intended to fly to Jakarta, the capital of Indonesia.

What about the corruption scandal?

Mr Najib had faced accusations of corruption and mismanagement over the state investment fund 1Malaysia Development Berhad (1MDB).

The scandal has gripped the country for years.

1MDB, set up by Mr Najib in 2009, was meant to turn Kuala Lumpur into a financial hub and boost the economy through strategic investments.

But it started to attract negative attention in early 2015 after it missed payments for some of the $11bn it owed to banks and bondholders.

Then the Wall Street Journal (WSJ) reported it had seen a paper trail that allegedly traced close to $700m from the fund to Mr Najib's personal bank accounts.

Mr Najib has consistently denied taking money from 1MDB or any public funds.

After being sworn in as new prime minister, Mr Mahathir said he would seek the return of millions of dollars lost in the scandal.</s>Malaysia's opposition has won a spectacular upset with an election result that ends more than 60 years of rule by a single, dominant coalition. Following a contest riddled with ironies, 92-year-old former prime minister Mahathir Mohamad becomes the world's oldest elected leader after leaving the coalition and challenging incumbent Najib Razak, his former protege whose reputation has been scorched by a massive corruption scandal. David Boyle reports from Malaysia's capital Kuala Lumpur.</s>Kuala Lumpur, Malaysia - How do you topple a government that has been ruling a country uninterrupted for more than six decades? Well, if the latest events in Malaysia are anything to go by, here's how it's done.

Bring in one of the architects of that historic party, let's call him Mahathir Mohamad. It does not matter if he is 92 years old. Make sure he has had plenty of experience as head of that party and running the country, in this case, 22 years.

Team him up with his former deputy, Anwar Ibrahim, who's in jail mainly due to a precedent set by Mahathir, but that's all history now.

Anwar spearheaded the movement known as Reformasi, calling for political and economic change in 1998 as deputy prime minister to Mahathir.

His rising popularity threatened the leader, and he was subject to a lengthy trial that eventually landed him a prison sentence on charges of sodomy, which he denies.

"I guess lots of Malaysians find it deeply ironic that the push for reform sparked off 20 years ago because of a fight between Mahathir and Anwar," said Kean Wong, an analyst with newmandala.org, which provides perspective on developments in Southeast Asia.

"And it is now being helmed by Mahathir, who is campaigning against kleptocracy and other issues," he added.

Wong believes, despite Anwar and Mahathir's well-documented rivalry, it was necessary for the two forces to join together.

"I think Mahathir was instrumental," he said. "Having covered five elections and the key Reformasi ones over the past 20 years, it was obvious that Anwar Ibrahim could never quite access the rural Malay hinterland and heartland, a crucial vote bank, the way that Mahathir's aura and image could."

Mahathir, the master political strategist, brought together a coalition of former opposition politicians he oppressed, punished and jailed while in power as prime minister.

He convinced them that together they could take down their common enemy, the then-ruling coalition, Barisan Nasional.

They ran a campaign denouncing the systems and government structure plagued by cronyism and corruption. A system that Mahathir created while prime minister from 1981 to 2003.

Barisan Nasional and its leader, former Prime Minister Najib Razak have been embroiled in one of the world's biggest corruption scandals known as 1MDB involving billions of dollars.

Analysts say the country was ready for this seismic shift. A new generation fed up with corruption and empty promises, armed with social media and other tools to gather information, had reached the ballot boxes.

They were not to be intimidated by a new raft of laws imposed in advance of the elections to crush dissent.

And unlike previous generations, they weren't to be swayed by last-minute government campaigning comprising mainly of handouts of cash and other commodities.

So then, an historic victory for the opposition coalition Pakatan Harapan or The Alliance of Hope led by Mahathir and Anwar's party.

Outside the palace, cheering supporters gathered on Thursday, waiting for Mahathir and his partners to be confirmed as new rulers of the Southeast Asian country.

A 25-year-old engineer celebrating in front of the gilded gates said he was here because it was momentous.

"I never expected to be able to witness this kind of democracy in action, for the last few decades every election felt like a default," the 25-year-old, who wished to remain anonymous, said.

"Mahathir may be leading us through this transition of a new government, but it's his supporters that will carry on the drive for development and progress in this nation."

The revellers were of all races and backgrounds. Analysts say a point worth noting as this new coalition government is a step towards dismantling the race-based politics that Mahathir himself had pioneered to retain power last century.

It's something the Malaysians are well aware of.

"This is a historic moment, we can see Malays, Indians, Chinese, all together. We are so united, witnessing this change. Even the parties are multiracial, it's so different from Barisan Nasional," said a 32-year-old teacher.

This teacher who was among the revellers, also said that this couldn't have happened without the Mahathir-Anwar dream team.

"We are the only country in the world who has a prime minister in waiting, that is Anwar, and we have been waiting 20 years for him," he told Al Jazeera.

Many stayed away from the celebrations. Some heeding police and government warnings that it may lead to agitations, and some taking stock of what happened more soberly.

Stephanie Augustin is a freelance financial journalist. She is sceptical of the new government.

Augustin believes the economic and fiscal reforms promised by Mahathir in his campaign don't add up.

"On the policy side, [former Prime Minister] Najib Razak is on the right track by introducing fiscal deficit that is good I believe. The opposition manifesto is not financially viable to me, it will hurt a lot of people."

She is referring to the opposition's (Mahathir's) promise to remove the six percent consumption tax known as GST. Economists believe that it's a way to spread the tax burden evenly, as many people in Malaysia fall below the tax paying bracket.

She says she abstained from voting as she has no illusions about any of the political groups involved.

"The face of change and hope which is their slogan shouldn't be the guy who led for 22 years as a dictator, it doesn't make sense to me," said the 27-year-old.

Age has sharpened Mahathir's sense of humour and irony. He is well aware of his reputation as a former strongman who held the country in a vice-like grip as prime minister.

While prime minister, he is credited with being the architect behind Malaysia's economic development during his 22-year reign.

Fielding a barrage of questions at a press conference following his victory he told journalists: "You may ask questions but in a very orderly fashion, please remember that I was the dictator."

That is at the forefront of many people's minds as they enter this new era. But law professor Azmi Sharom says people now understand they have the power, and the old way of governance will not be accepted.

"Mahathir was what he was because he was surrounded by people who would not stand up to him," he told Al Jazeera. "He was able to do what he was doing because he was all powerful but that's not the case any more.

"I think the other component parties and ministers, once he appoints them will make sure the promises are kept."

Mahathir has promised that winning the elections would enable broad and deep reforms. Reforms that will essentially dismantle the system he built up over decades.</s>Billions of missing dollars, an angry population and a powerful new prime minister who has vowed to bring justice to Malaysia do not bode well for Najib Razak, who was turfed from power by an electoral earthquake this week.

Voters came out in force to topple the scandal-plagued leader and the increasingly authoritarian regime that had led the country uninterrupted for more than six decades, handing power to an opposition alliance headed by ageing former autocrat Mahathir Mohamad.

But for the ex-premier, the result could mean more than just the end of his political career -- Mahathir has vowed to launch investigations into a headline-grabbing controversy in which Najib is implicated in plundering billions of dollars from sovereign wealth fund 1MDB.

At a press conference after his shock win, Mahathir -- who had previously ruled Malaysia for two decades and staged a comeback to oust his former protege Najib -- vowed to "retore the rule of law".

The fund, 1Malaysia Development Berhad (1MDB), was set up by Najib when he came into office in 2009 ostensibly to promote Malaysia's economic development, but allegations soon surfaced that money was missing.

The scandal exploded in 2015 when reports emerged that Najib received $681 million into his personal bank accounts. A domestic investigation cleared him and concluded the money was a donation from the Saudi royal family, and he has denied any wrongdoig.

But the US State Department has alleged in civil lawsuits that $4.5 billion was looted from the fund, and used to buy everything from high-end US real estate to artworks and a luxury yacht.

After being booted out as premier and losing the protection of high office, speculation has been mounting that Najib and his wife Rosmah Mansor, a hugely unpopular figure due to her reported love of costly luxury shopping trips, might flee.

But analysts and politicians played down this possibility saying Najib would likely stay in Malaysia -- at least in the short term -- until the dust had settled in his party, the United Malays National Organisation (UMNO), and in any case there were unlikely to be many countries willing to accept him.

"He does not have lots of options," James Chin, a Malaysia expert from the University of Tasmania, told AFP.

"The only countries that may give him political asylum will be somewhere in the Middle East."

Charles Santiago, an MP from the Democratic Action Party, part of the new ruling alliance, said that Najib was still the head of the long-ruling Barisan Nasional (BN) coalition and would want to hold the fort for at leat a while.

He also said fleeing was unlikely as "other countries won't touch him because of 1MDB".

Mahathir told reporters this week he believed the new government could get back most of the money stolen from 1MDB."We have to increase the confidence of investors in this administration," he said.

He has also indicated that Attorney-General Mohamed Ali Apandi, who cleared Najib over the scandal and closed down domestic investigations, was already in the cross-hairs of the new administration.

But Chin said it was unlikely anything would happen to Najib immediately with regard to 1MDB, as the new government would want to show it was following due process.

"They will have to institute a proper investigation," he said.

Najib's position as head of both UMNO and BN looked shaky, with rumblings of discontent growing louder as a senior member -- former sports minister Khairy Jamaluddin -- publicly called for "big changes" to be made without delay.

BN strategic communications director Abdul Rahman Dahlan, who lost his parliamentary seat in the election, said he wanted "a peaceful transition".

"But there has to be a collective decision including from the president (Najib)," he said.

As for Najib's widely despised wife, Chin said she only had one choice.

"If she wants to be protected, she has to disappear from public view completely," he said.</s>Malaysia’s scandal-ridden former leader Najib Razak was hit with a travel ban Saturday as speculation mounted he was about to flee the country following his shock election loss, in a possible bid to avoid prosecution over a massive financial scandal.

An angry crowd had gathered at a Kuala Lumpur airport, shouting at vehicles and seeking to stop them entering, after a flight plan leaked online showed Najib and his unpopular wife Rosmah Mansor were planning to fly to Indonesia.

The defeat of Najib’s Barisan Nasional (BN) coalition in last week’s poll by an alliance led by his one-time mentor Mahathir Mohamad was a political earthquake, which toppled an increasingly authoritarian regime that had ruled the country for six decades.

At 92, Mahathir is the world’s oldest state leader. He previously served as prime minister for over two decades, and was himself accused of ruling with an iron fist.

Speculation had been mounting that Najib, who has been embroiled in a massive scandal related to state fund 1MDB, might try to flee the country as Mahathir has pledged to investigate the controversy.

As the image of the leaked manifest for a flight to Jakarta spread like wildfire online, Najib insisted in social media posts he was planning only a “short break” overseas to rest after the election and would be back next week.

But anger quickly mounted among social media users who accused the defeated leader of seeking to flee, and the immigration department swiftly announced both he and Rosmah were banned from leaving Malaysia.

“The immigration department has just now blacklisted Najib and Rosmah from leaving the country,” Mustafar Ali, director-general of the immigration department, told AFP.

Najib said in a tweet: “I have just been informed by the immigration department of Malaysia that my family and I are not allowed to go abroad. I respect the decision and I will remain in the country with my family.”

Rosmah has long been a lightning rod for public anger in Malaysia due to her reported love of luxury shopping trips and vast collection of designer handbags.

Her openly spendthrift ways have been galling for ordinary Malaysians who increasingly complain of soaring living costs, particularly after Najib’s government introduced an unpopular sales tax in 2015.

Earlier, as dozens of people descended on the airport in a bid to stop them leaving, riot police were stationed by the gate of the airport where it was believed Najib would enter.

As a white van with heavily tinted windows attempted to pass by, the crowd surrounded the vehicle and demanded it be opened so they could see who was inside.

They tried to rock the vehicle and one man shouted “I hate Rosmah”.

It was only allowed to pass after those inside rolled down a window to prove Najib was not in the van.

Businessman Raja Singham, 49, who had tried to block the van from entering, said: “We have the right to know who is inside the car, as a citizen I will fight for that. We have suffered for so many years. I don’t want them to get out of the country.”

The US State Department alleges in civil lawsuits that $4.5 billion was pillaged from 1MDB in an audacious scheme of fraud and money-laundering, and funnelled to the United States where it was used to buy everything from artwork to high-end real estate.

Almost $700 million ended up in Najib’s personal bank accounts, although the attorney-general said it was a donation from the Saudi royal family and cleared the then-premier of misconduct.

In the latest dizzying development after last week’s shock poll results, Mahathir announced Friday that the king had agreed to pardon jailed leading politician Anwar Ibrahim, his former nemesis turned ally.

This would pave the way for Anwar’s return to politics and to potentially become premier later. Mahathir has said he plans to eventually hand the premiership to Anwar.

Anwar was heir-apparent to Mahathir until they had a dramatic falling out.

Mahathir sacked him in 1998, and he was subsequently jailed. He was released and then imprisoned again under Najib’s rule in 2015.

Mahathir and Anwar reconciled in recent years in a bid to oust Najib, an extraordinary twist even by the head-spinning standards of Malaysian politics.</s>There had been widespread speculation Najib would fly overseas after his shock election defeat this week, amid calls for him to be prosecuted over the sprawling 1MDB corruption scandal.

"I've been informed that the immigration department is barring me and my family from leaving the country," Najib said in a tweet Saturday. "We will respect the order."

Rumors spread Friday night that Najib would leave the country after he posted on Facebook he planned to take a "short break to spend time with my family whom I have not seen enough of in recent year."

Asked Thursday if he would pursue a corruption investigation into Najib, Mahathir Mohamad -- who defeated Najib in Wednesday's vote -- said the former leader would be subject to the rule of law. The corruption scandal revolves around a state fund, known as the 1Malaysia Development Berhad, commonly known as 1MDB. Mahathir was sworn in on Thursday night by the king, Malaysia's constitutional ruler, following a momentous vote in which scandal-plagued Najib was soundly beaten at the polls by his former mentor. Mahathir's victory upended six decades of control by the Barisan Nasional coalition, which he himself formerly headed as Malaysia's Prime Minister from 1981 until 2003. He said Friday the king had agreed to pardon jailed politician Anwar Ibrahim , whose case has dominated Malaysian politics for years. Anwar, once a leading light in the party that ruled Malaysia for decades, was jailed on sodomy charges in 2015, after a trial he says was politically motivated. Mahathir had promised, if elected, to free Anwar and eventually hand power over to him. Anwar's wife, Wan Azizah Wan Ismail, endorsed Mahathir and served as his deputy in the coalition to oust Najib. She was one of the dozens of opposition candidates elected Wednesday. Anwar was expected to be released in June, after serving the bulk of the sentence.</s>Billions of missing dollars, an angry population and a powerful new prime minister who has vowed to bring justice to Malaysia do not bode well for Najib Razak, who was turfed from power by an electoral earthquake this week.

Voters came out in force to topple the scandal-plagued leader and the increasingly authoritarian regime that had led the country uninterrupted for more than six decades, handing power to an opposition alliance headed by ageing former autocrat Mahathir Mohamad.

But for the ex-premier, the result could mean more than just the end of his political career -- Mahathir has vowed to launch investigations into a headline-grabbing controversy in which Najib is implicated in plundering billions of dollars from sovereign wealth fund 1MDB.

At a press conference after his shock win, Mahathir -- who had previously ruled Malaysia for two decades and staged a comeback to oust his former protege Najib -- vowed to "retore the rule of law".

The fund, 1Malaysia Development Berhad (1MDB), was set up by Najib when he came into office in 2009 ostensibly to promote Malaysia's economic development, but allegations soon surfaced that money was missing.

The scandal exploded in 2015 when reports emerged that Najib received $681 million into his personal bank accounts. A domestic investigation cleared him and concluded the money was a donation from the Saudi royal family, and he has denied any wrongdoig.

But the US State Department has alleged in civil lawsuits that $4.5 billion was looted from the fund, and used to buy everything from high-end US real estate to artworks and a luxury yacht.

After being booted out as premier and losing the protection of high office, speculation has been mounting that Najib and his wife Rosmah Mansor, a hugely unpopular figure due to her reported love of costly luxury shopping trips, might flee.

But analysts and politicians played down this possibility saying Najib would likely stay in Malaysia -- at least in the short term -- until the dust had settled in his party, the United Malays National Organisation (UMNO), and in any case there were unlikely to be many countries willing to accept him.

"He does not have lots of options," James Chin, a Malaysia expert from the University of Tasmania, told AFP.

"The only countries that may give him political asylum will be somewhere in the Middle East."

Charles Santiago, an MP from the Democratic Action Party, part of the new ruling alliance, said that Najib was still the head of the long-ruling Barisan Nasional (BN) coalition and would want to hold the fort for at leat a while.

He also said fleeing was unlikely as "other countries won't touch him because of 1MDB".

Mahathir told reporters this week he believed the new government could get back most of the money stolen from 1MDB."We have to increase the confidence of investors in this administration," he said.

He has also indicated that Attorney-General Mohamed Ali Apandi, who cleared Najib over the scandal and closed down domestic investigations, was already in the cross-hairs of the new administration.

But Chin said it was unlikely anything would happen to Najib immediately with regard to 1MDB, as the new government would want to show it was following due process.

"They will have to institute a proper investigation," he said.

Najib's position as head of both UMNO and BN looked shaky, with rumblings of discontent growing louder as a senior member -- former sports minister Khairy Jamaluddin -- publicly called for "big changes" to be made without delay.

BN strategic communications director Abdul Rahman Dahlan, who lost his parliamentary seat in the election, said he wanted "a peaceful transition".

"But there has to be a collective decision including from the president (Najib)," he said.

As for Najib's widely despised wife, Chin said she only had one choice.

"If she wants to be protected, she has to disappear from public view completely," he said.</s>Kuala Lumpur, May 12 (IANS) Former Malaysian Prime Minister Najib Razak, who was defeated in the general elections, has been banned from leaving the country, Immigration officials said on Saturday.

Najib said he and his wife Rosmah Mansor were planning to go on an overseas holiday following which the Immigration Department made the announcement via its social site account, BBC reported.

He gave no reasons for the authorities’ decision but said he would abide by it. “I respect this instruction and will stay in the country with my family,” he tweeted.

It is believed they intended to fly to Indonesian capital Jakarta.

Najib also announced that he was stepping down as the head of his United Malays National Organisation (UMNO) and the Barisan Nasional (BN) coalition following the poll defeat.

“As the President of UMNO and the Chairman of Barisan Nasional, I made the decision that I am stepping down as President and Chairman with immediate effect,” he said at the UMNO headquarter in Kuala Lumpur.

In a historic election earlier this week, Najib’s BN coalition, which had been in power since Malaysia’s independence in 1957, lost to the Pakatan Harapan coalition led by Mahathir Mohamad, who took office as Prime Minister.

Najib has been accused of diverting $700 million from a state investment fund in 2015, a charge he denies. He has since been cleared by the authorities.

He had faced accusations of corruption and mismanagement over the state investment fund 1Malaysia Development Berhad (1MDB). 1MDB, set up by Najib in 2009, was meant to turn Kuala Lumpur into a financial hub and boost the economy through strategic investments.

But it started to attract negative attention in early 2015 after it missed payments for some of the $11 billion it owed to banks and bondholders.

After that, there were reports of around $700 million transferred from the fund to Najib’s personal bank accounts.

The new government led by Mahathir vowed to re-open the investigation into the scandal of state investment fund 1MDB. Mahathir has said that if Najib were found to do something wrong, “he will have to face the consequences”.</s>Former Malaysian Prime Minister Najib Razak, who was defeated in the recently-held general elections, and his wife Rosmah Mansor have been banned from leaving the country, the immigration department said on Saturday.

Najib said that he and his family were planning to go on an overseas holiday on Saturday and would return next week following which the immigration department made the announcement via its social site account, BBC reported.

“I was already informed that the immigration department of Malaysia doesn’t allow me and my family to foreign countries. I respect this instruction and will stay in the country with my family,” Najib tweeted moments later.

In a historic election earlier this week, Najib’s Barisan Nasional coalition, which has been in power since Malaysia’s independence in 1957, lost to the Pakatan Harapan coalition led by Mahathir Mohamad, who has taken office as Prime Minister.

Najib has been accused of diverting $700 million from a state investment fund in 2015, a charge he denies. He has since been cleared by the authorities.

He had faced accusations of corruption and mismanagement over the state investment fund 1Malaysia Development Berhad (1MDB). 1MDB, set up by Najib in 2009, was meant to turn Kuala Lumpur into a financial hub and boost the economy through strategic investments.

But it started to attract negative attention in early 2015 after it missed payments for some of the $11 billion it owed to banks and bondholders.

After that, there were reports of around $700 million transferred from the fund to Najib’s personal bank accounts. Najib has consistently denied taking money from 1MDB or any public funds.

After being sworn in as new Prime Minister, Mahathir said he would seek the return of millions of dollars lost in the scandal.
Former Malaysian Prime Minister Najib Razak is banned from leaving the country due to the ongoing investigation into the 1Malaysia Development Berhad scandal. He subsequently resigns as president of UMNO and as head of the BN coalition.