The Court of Appeal has fixed June 18, 2026, to hear former Prime Minister Muhyiddin Yassin's appeal of a High Court ruling that found him liable for defaming former Finance Minister Lim Guan Eng and ordered damages of about RM1.35 to 1.4 million [1, 2]. The appeal also includes Lim’s cross-appeal regarding interest related to the case [1, 2].

Lim filed the defamation suit after Muhyiddin alleged in March 2023 that the Pakatan Harapan government, led by Lim, abused power by revoking the tax exemption for Yayasan Albukhary, an Islamic charity foundation [1, 2]. Lim denied these claims and sued for defamation on March 27, 2023 [2]. Prime Minister Anwar Ibrahim later stated that Lim never revoked the charity’s tax-exempt status during his tenure [2].

In November 2024, High Court Judge Roz Mawar Rozain ruled that Muhyiddin had defamed Lim and ordered RM1.05 million in general damages, RM150,000 each in aggravated and exemplary damages, plus RM50,000 in costs. The judge said, “This has been a case of considerable public importance ... The evidence has demonstrated clearly that the allegations made by the defendant were not only false, but potentially harmful to our nation's social fabric” [1].

The total damages awarded ranged between RM1.35 million and RM1.4 million, depending on the source [1, 2]. The High Court found Muhyiddin’s remarks harmful for Malaysia's social fabric and sensitive racial and religious relations [1, 2]. The court granted a conditional stay in December 2024, requiring Muhyiddin to pay RM400,000 by the end of 2024 and the remaining RM1 million by January 27, 2025 [1].

Muhyiddin paid the damages into Lim’s law firm account in late January 2025 pending appeal [1, 2]. Lim filed a bankruptcy notice for failure to pay before the monies cleared [1]. Lim’s counsel is Guok Ngek Seong, while Muhyiddin is represented by Chetan Jethwani [1].

The case marks a significant legal battle between two prominent Malaysian political figures. The Court of Appeal hearing next month will decide whether to uphold or overturn the High Court ruling.