Malaysia's Transport Minister Anthony Loke has announced that he will resign from Prime Minister Anwar Ibrahim's Cabinet following the decision allowing former Prime Minister Najib Razak to serve the remainder of his sentence under house arrest.

Loke, who is also secretary general of the Democratic Action Party, announced the decision on Saturday following an emergency meeting of the party's Central Executive Committee in Kuala Lumpur.

He said he would submit his resignation to Anwar, while other DAP ministers would remain in their government positions.

The decision highlights political disagreement within Malaysia's governing alliance following the conditional pardon granted to Najib.

LOKE TAKES INDIVIDUAL RESPONSIBILITY

Loke said his resignation would be limited to his position as Transport Minister.

Other DAP ministers have not been instructed to leave the Cabinet, and Loke will remain secretary general of the party.

The decision followed a nearly three hour meeting of the DAP leadership called specifically to discuss the party's response to Najib's conditional pardon.

DAP said it would continue supporting the unity government despite Loke's departure from the Cabinet.

The party has indicated that it does not want the disagreement to trigger the collapse of the government or force an early general election.

NAJIB GRANTED CONDITIONAL HOUSE ARREST

The political dispute follows a decision allowing Najib to serve the remainder of his sentence under house arrest until August 23, 2028.

Malaysia's King Sultan Ibrahim consented to the conditional pardon following a meeting of the Federal Territories Pardons Board.

The arrangement is subject to Najib paying a RM50 million fine and complying with conditions attached to the pardon.

Authorities have said detailed procedures governing his house arrest, including monitoring and restrictions on movement, are expected to be established.

Najib has been imprisoned since August 2022 following his conviction in the SRC International corruption case.

DAP HAD CALLED EMERGENCY MEETING

DAP convened its emergency leadership meeting after the house arrest decision was announced.

Loke had said before the meeting that the party would determine its formal response while recognising the constitutional authority governing Malaysia's pardon process.

Following the meeting, he announced that he would leave his ministerial position while his colleagues remained in Cabinet.

The arrangement allows DAP to register its disagreement with the decision without withdrawing the party from the government.

DAP REMAINS PART OF GOVERNING ALLIANCE

DAP is a major component of Pakatan Harapan, the political alliance led by Anwar.

Its continued support is therefore important to the parliamentary coalition underpinning the government.

However, Loke stressed that DAP does not intend to destabilise the administration.

The party had already voted at its national congress in August to remain in the unity government until the end of the current parliamentary term.

DAP's decision to retain its other ministers means the immediate political impact is different from a full withdrawal from Anwar's government.

NAJIB DECISION REMAINS POLITICALLY SENSITIVE

Najib served as Malaysia's Prime Minister from 2009 until 2018.

He was convicted in 2020 of abuse of power, money laundering and criminal breach of trust involving funds belonging to SRC International.

He began serving his sentence in 2022 after Malaysia's Federal Court rejected his final appeal.

An earlier pardon reduced his original 12 year prison sentence to six years and reduced his fine from RM210 million to RM50 million.

The latest conditional pardon allows the remainder of that sentence to be served under house arrest if its conditions are fulfilled.

Najib continues to face separate legal proceedings connected to 1MDB.

Loke's resignation demonstrates the political sensitivity surrounding the former prime minister's treatment, but DAP's decision to remain in the government means the development does not currently amount to a collapse of Anwar's governing coalition.