A private plane, believed to be owned by fugitive businessman Low Taek Jho, also known as Jho Low, could go under the hammer if payment is not made to a firm that has been storing the aircraft in its hangar at Seletar Airport for about 18 months.
It is believed the amount owed has snowballed to about $1.2 million.
"It may be the only way for the firm in question, Jet Aviation, to recover its payment if nobody wants to settle the bill," said a source who did not wish to be identified.
In the meantime, Changi Airport Group (CAG),which manages Seletar Airport, has denied a Malaysian media report that it is owed storage fees by the aircraft's owner.
CAG spokesman Ivan Tan confirmed this with The Straits Times (ST) following the report, which said the Malaysian authorities would have to pay Seletar Airport the outstanding amount if it wants the plane back.
Jet Aviation did not reply to queries from ST.
Last week, the Singapore authorities confirmed that no official request has been made by the Malaysian government for the return of the US$35 million (S$48 million) aircraft, which is the subject of ongoing 1MDB-related investigations.
The Bombardier Global 5000 aircraft is part of about US$1 billion in assets allegedly acquired with funds misappropriated from the state investment firm. Low allegedly bought it with funds stolen from 1MDB.
Malaysia has already seized a US$250 million superyacht, Equanimity, with cooperation from the Indonesian authorities.
Lawyers said that while Jet Aviation has every right to recover the money it is owed, the matter is unlikely to be easily resolved. To make a claim, the firm would have to sue by filing a writ of summons.
Complications could arise if the party owing arrears is not the owner of the plane. Even if it was, the owner of the plane may be a firm and not an individual.
Lawyer Daniel Chia said that if a judgment needs to be enforced, perhaps by seizure and sale of the asset, there could be more complications. "For example, the aircraft may be the subject of a lease or may not have been fully paid for. This could result in competing claims."
