Former Malaysian prime minister Najib Razak has denied three counts of criminal breach of trust in a probe linked to the scandal-tainted state fund 1MDB.

Mr Razak, 64, appeared in a Kualur Lumpur court on Wednesday to deny three counts of criminal breach of trust and one count of using his position for gratification as part of a probe into 42 million ringgit ($13.5 million) missing from the fund.

Both Mr Razak and the fund – which he founded – have denied any wrongdoing.

He was arrested at his home on Tuesday, less than two months after police and corruption busters revived probes into the missing money and a suspicious transaction involving SRC International, a former 1MDB unit.

Each of the charges has a maximum penalty of 20 years in prison.

Mr Razak arrived at court early on Wednesday, wearing a dark blue suit and a red tie.

Crowds of media and curious onlookers jostled to catch a glance of the former prime minister as he was led to a sessions court to hear the charges.

Mr Razak suffered a shock loss at the general election in May, the first change of government since Malaysia gained independence from Britain in 1957.

Mahathir Mohamad, who was elected prime minister, has vowed to bring back money allegedly siphoned from 1MDB and punish those responsible.

-with agencies