Malaysia says it still has to pay $2.8 billion in 1MDB debts
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As at end-June, Malaysia has paid RM42.5 billion (S$13.5 billion) for 1MDB-related debts, while recovering RM31.3 billion over the scandal.
PHOTO: REUTERS
- Malaysia must pay RM8.9 billion (S$2.8 billion) in remaining 1MDB debts, including an Islamic note maturing in 2039, says Deputy Finance Minister Liew Chin Tong.
- Malaysia has paid RM42.5 billion ringgit and recovered RM31.3 billion related to 1MDB, but may face RM20.1 billion in losses if no further recoveries occur.
- The 1MDB scandal involves former PM Najib Razak, now jailed, and businessman Low Taek Jho, who remains in hiding; government denies claims of 2025 settlement talks with Low and a Chinese delegation.
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KUALA LUMPUR - The Malaysian government must pay RM8.9 billion (S$2.8 billion) in remaining debts it incurred from the 1Malaysia Development Berhad (1MDB) scandal, Deputy Finance Minister Liew Chin Tong said on July 9.
The liability includes a government-guaranteed Islamic note, or sukuk, that will mature in 2039.
It also has to service a RM5 billion principal and a RM3.9 billion interest for the financing, Liew told Parliament.
As at end-June, Malaysia has paid RM42.5 billion for 1MDB-related debts, while recovering RM31.3 billion over the scandal, Liew said.
“If there are no further recoveries, the government will have to absorb RM20.1 billion in losses,” Liew said.
The multibillion dollar scandal over the sovereign wealth fund has spawned criminal investigations over several jurisdictions.
The fund was first started by former Malaysian prime minister Najib Razak, who has been in jail since 2022 after being convicted for 1MDB-related crimes.
Businessman Low Taek Jho, the alleged mastermind of the scandal, has been in hiding for years despite Malaysia’s attempts to repatriate him.
Liew on July 9 denied claims that Low and a Chinese delegation entered Malaysia in 2025 to negotiate a settlement. BLOOMBERG
