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 natural disaster, which toppled an increasingly authoritarian regime that had ruled the country for six decades.
Ousted Malaysian Prime Minister Najib Razak said on Saturday that he had resigned as president of United Malay National Organisation (UMNO) party, and chairman of the Barisan Nasional alliance, with immediate effect. UMNO, a party dominated by the country's Muslim Malay majority, is the main group in BN.
The National Front, which has ruled Malaysia since independence from Britain, won only 79 of the 222 parliamentary seats, losing power to Mahathir's four- party alliance amid public anger over the 1MDB scandal and a rising cost of living. Najib responded swiftly by saying he respected the department's ruling and will stay with his family in the country.
TRT World spoke to Jakarta-based journalist Zan Azlee for more details.
Mr Najib, who said earlier that he was only planning a short holiday overseas, responded swiftly by saying he respected the immigration department's ruling and would stay with his family in the country.
Najib Razak has been banned from leaving Malaysia after planning to go on holiday with his wife Rosmah Mansor.
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"As I have argued ad nauseum, Malaysia needs major recalibration, but all attempts under the old order failed due to structural rigidities and vested interest", Nazir said in an Instagram posting.
"I apologize for any shortcomings and mistakes, and I thank you, the people, for the opportunity to lead our great nation".
Najib has denied wrongdoing and Malaysia's attorney-general has cleared him of any offence, saying the funds were a legitimate donation from the Saudi royal family.
He has said there will be a thorough investigation into cases of alleged corruption including the one involving the state investment fund.
U.S. investigators said Mr Najib's associates stole and looted $4.5bn (£3.3bn) from the fund - including $700m (£517m) which ended up in his bank account and $30m (£22m) used to buy jewellery for his wife.
Despite being a polarizing figure, police said that Wednesday's election largely remained peaceful except for a handful of minor scuffles between supporters of opposing camps.
Mahathir on Saturday appointed an ethnic Chinese, Lim Guan Eng, as finance minister, the first ethnic minority to hold the powerful post in 44 years.