REPUBLIKA.CO.ID, KUALA LUMPUR -- Malaysian Prime Minister Najib Razak has instructed his lawyers to consider action against the Wall Street Journal (WSJ), which reported that investigators probing debt-laden state fund 1MDB had traced nearly $700 million to bank accounts in his name.

Law firm Hafarizam Wan & Aisha Mubarak said in a statement on Wednesday that since last week's article involved several parties, they were instructed to consider what kind of action to take, "in the event evidence shows a conspiracy against our client".

"Once our client has obtained all necessary facts and the position of WSJ is ascertained, we have strict instructions to immediately exhaust legal avenues and remedies," it said.

The Wall Street Journal did not respond immediately to a request from Reuters to comment.

The prime minister was expected to hold a regular cabinet meeting on Wednesday, the first since the WSJ report sparked a political crisis that has contributed to a fall in the ringgit currency to a 16-year low against the dollar.

Opposition lawmakers have asked cabinet ministers to seek an explanation of the allegations from Najib and ask him to go on leave until the probe is completed.

Members of Najib's party, the United Malays National Organisation (UMNO), have closed ranks behind the prime minister, who had already been on the back foot over alleged mismanagement of 1MDB and his handling of the economy.

Najib has denied taking any money from 1MDB or any other entity for personal gain.

1MDB has described the allegations as "unsubstantiated", saying it never provided funds to the prime minister.

Reuters has not independently verified the WSJ report.

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