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🇸🇬 Singapore /Economy & Trade

Malaysia says it still has to pay $2.8 billion in 1MDB debts

From The Straits Times · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Malaysia still owes RM8.9 billion (S$2.8 billion) in remaining debts related to the 1Malaysia Development Berhad (1MDB) scandal, according to Deputy Finance Minister Liew Chin Tong.
  • The outstanding liability includes a government-guaranteed Islamic note maturing in 2039, along with principal and interest payments.
  • As of June, Malaysia has paid RM42.5 billion for 1MDB debts while recovering RM31.3 billion, potentially facing RM20.1 billion in losses if further recoveries are not made.

Malaysia faces a substantial remaining debt of RM8.9 billion (S$2.8 billion) stemming from the 1Malaysia Development Berhad (1MDB) scandal, Deputy Finance Minister Liew Chin Tong announced on July 9.

The outstanding financial obligation includes a government-guaranteed Islamic note, known as a sukuk, which is set to mature in 2039. Liew informed Parliament that the government must also service a RM5 billion principal amount and RM3.9 billion in interest for the financing related to the scandal.

Since the scandal's inception, Malaysia has paid RM42.5 billion towards 1MDB-related debts. While RM31.3 billion has been recovered, Liew cautioned that the government could absorb RM20.1 billion in losses if no further recoveries are achieved.

The 1MDB scandal, which involved the sovereign wealth fund initiated by former Prime Minister Najib Razak, has led to criminal investigations across multiple jurisdictions. Najib Razak has been imprisoned since 2022 for 1MDB-related offenses. The alleged mastermind, businessman Low Taek Jho, remains at large despite repatriation efforts by Malaysia. Liew also refuted claims that Low and a Chinese delegation visited Malaysia in 2025 to negotiate a settlement.

If there are no further recoveries, the government will have to absorb RM20.1 billion in losses

— Liew Chin TongDeputy Finance Minister Liew Chin Tong's statement on potential financial losses related to the 1MDB scandal.
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Originally published by The Straits Times. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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