THE Malaysian government has formed a committee to look into matters relating to scandal-hit state fund 1Malaysia Development Bhd (1MDB).

A statement by the Council of Eminent Persons on Thursday (May 17) said in its deliberations that it recognises the need to have a separate group to look into all matters related to 1MDB, where some US$4.5 billion (S$6 billion) of public money was allegedly siphoned out.

"Until and unless the issue of 1MDB is resolved, there will be questions that undermine public confidence in the Government and its Institutions," said a statement by the council, which is appointed by the week-old Mahathir Mohamad administration and is led by former finance minister Daim Zainuddin.

The council has named five persons as members of the 1MDB commitee.

They are former attorney-general Tan Sri Abu Talib Othman; Mr Nik Shahrizal Sulaiman, partner in risk assurance services at PwC; Mr Syed Naqiz Shahabuddin Syed Abdul Jabbar, senior partner at Naqiz & Partners; Mr Faris Rabidin, senior advisor at Otoritas Jasa Keuangan Indonesia, the Indonesian financial services authority; and Ms Cynthia Gabriel, founder of the Centre to Combat Corruption and Cronyism.