MALAYSIA’S financial burden arising from the 1Malaysia Development Berhad (1MDB) scandal has reached RM51.4 billion, with the government revealing that RM42.5 billion has already been paid while RM8.9 billion in remaining liabilities continues to be borne by the state.
In a written parliamentary reply to Stampin MP Chong Chieng Jen during the Dewan Rakyat sitting on Thursday, the Deputy Finance Minister Liew Chin Tong said the RM42.5 billion paid as of June 30, 2026 covered principal repayments, interest costs, legal expenses, operational commitments and other obligations associated with 1MDB.
The government remains liable for Sukuk Islamic Medium-Term Notes (IMTN) amounting to RM8.9 billion, consisting of RM5 billion in principal and RM3.9 billion in interest payments, with the sukuk scheduled to mature in 2039.
"This means that, overall, the 1MDB obligations that have been and still need to be borne by the Government amount to RM51.4 billion," he said.
The government has recovered RM31.3 billion in funds and assets linked to 1MDB to date, leaving an estimated net liability of RM20.1 billion that would need to be absorbed by the government if no further recoveries are secured.
Liew said efforts to recover additional assets remain ongoing through a combination of criminal prosecutions and civil claims against individuals and organisations linked to the scandal.
Among the measures undertaken are criminal and civil proceedings against former prime minister Datuk Seri Najib Razak. In the 1MDB case, the High Court on December 25, 2025 sentenced Najib to 15 years in prison and imposed a RM11.38 billion fine after finding him guilty on 25 charges involving money laundering and abuse of power for personal gain.
The government is also pursuing a civil claim against Datin Seri Rosmah Mansor to recover USD380 million in damages involving 1MDB funds allegedly used to acquire luxury items, including handbags and jewellery.
Civil action has also been initiated against Low Taek Jho, better known as Jho Low, with claims amounting to USD3.78 billion over his alleged role in the misappropriation of 1MDB funds.
The government is further seeking recovery from Tarek Obaid and Patrick Mahoni, who were linked to the misuse of 1MDB funds. The Swiss Federal Criminal Court had convicted both individuals and ordered compensation amounting to USD1.75 billion to 1MDB.
Legal action has also been taken against several international financial institutions allegedly connected to transactions involving misappropriated 1MDB funds.
However, the Finance Ministry said the scale of future recoveries was unlikely to fully cover the remaining obligations, as a substantial portion of recoverable assets had already been secured.
"As a result, the Government is expected to bear a substantial portion of the remaining net liabilities estimated at RM20.1 billion," it said.
The ministry said the 1MDB scandal had resulted in significant financial losses for the government while causing substantial damage to Malaysia’s international reputation and credibility.
It said the scandal had attracted widespread global media attention, prompted investigations by enforcement agencies in multiple countries and led to numerous cross-border legal proceedings.
The government acknowledged that the controversy had affected international perceptions of Malaysia’s governance standards, institutional integrity and financial management, creating challenges in strengthening investor confidence, improving economic competitiveness and maintaining market trust.
"Therefore, the MADANI Government under the leadership of the Prime Minister is making every effort to strengthen good governance in the country’s administration to restore global confidence in Malaysia," the ministry said.
It added that Malaysia had since achieved record levels of approved investments and trade performance, while improving its global competitiveness standing, as part of broader efforts to restore confidence in the country’s economic management and fiscal framework. - July 9, 2026
