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Subject

The Malaysian cabinet reshuffle's implications.

Significance

Prime Minister Najib Razak is reasserting himself politically amidst the 1Malaysia Development Berhad (1MDB) investment fund controversy. On July 28, he reshuffled his cabinet, removing the deputy prime minister and other officials investigating the affair; and on August 3, he called on the Malaysian Communications and Multimedia Commission to develop tighter controls against slander in online political speech.

Impacts

Najib will use the reshuffle to reassert his national development goals, but Malaysian economic difficulties may constrain him.

Najib will continue moving against critics, potentially attempting to remove state chief ministers perceived as challenging him.

A state-level backlash against Najib is possible; policy disruption could follow.

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