Prime Minister Najib Abdul Razak has been urged to take legal action against The Wall Street Journal (WSJ) immediately, if the US daily has once again made false accusations against him.

"The rakyat urge the prime minister to sue WSJ immediately, if it has really made false accusations for the second time," Amanah strategy director Dr Dzulkefly Ahmad said in a statement today.

If Najib refuses to take legal action, then he should just resign for the sake of the country, Dzulkefly said.

"If Najib will not sue WSJ, then the rakyat demand that he resigns as prime minister and finance minister immediately, for the sake of the future of the country and its people."

On Feb 12, WSJ finance editor Ken Brown refuted attorney-general Mohamed Apandi Ali's claims that the RM2.6 billion in Najib's accounts was a donation from the Saudi royal family.

This is a very serious accusation that could further ruin the country's already damaged reputation, Dzulkefly ( photo ) said.

He also pointed out that no legal action has been taken against the US financial daily since it made the first accusation against Najib, back in July last year.

WSJ broke the news then on alleged financial improprieties involving sovereign fund 1MDB, linking the firm to movements of funds involving Najib and an alleged election slush fund.

Najib denied the donation came from 1MDB and sent a legal letter to WSJ to ask if it meant what it published.

He has not commenced any legal proceedings against the newspaper after it replied that it stands by its reporting.