As predicted last week by this publication, the shock Malaysian election result has turned up the heat once again on the country's former prime minister and its scandal-embroiled sovereign wealth fund.

Malaysia’s newly-elected Prime Minister Mahathir Mohamad has vowed to reopen investigations into his predecessor’s ties to a scandal-hit development fund after barring him from leaving the country. 

Mahatir, who imposed the restriction on former Prime Minister Najib Razak, said he would reopen a probe investigating corruption at 1Malaysia Development Berhad (1MDB), the sovereign wealth fund, and replace the attorney who initially cleared Najib of wrongdoing.

The prime minister also intructed the auditor general to declassify a 1MDB report that was previously protected by law. The fund is at the centre of money laundering investigations in at least six countries, including the US, Singapore and Switzerland. 

Mahatir, who was prime minister of Malaysia from 1981 to 2003, has repeatedly touted Najib as a “thief” after he was publicly accused of channelling millions of dollars from 1MDB into his personal bank accounts. 

To read this publication’s coverage of the Malaysian election result last week, click here.

Singapore's de facto central bank and financial regulator weighed in on the recent developments. 

The Monetary Authority of Singapore (MAS) said in an emailed statement: “The Singapore authorities have cooperated extensively with their Malaysian counterparts on their past requests for information in relation to 1MDB-related transactions, and are fully prepared to extend further assistance. Singapore has also taken swift action against financial institutions and individuals who have broken laws within our jurisdiction in connection with 1MDB-related fund flows.”