KUALA LUMPUR, July 9 — The government remains liable for over RM20 billion of 1MDB’s debt if it fails to recover further assets, despite having already paid up to RM40 billion in one of the world’s largest embezzlement scandals.
Deputy Finance Minister Liew Chin Tong said in Parliament today that the sheer scale of these repayments reflects the magnitude of the crime, noting that the burden has fallen heavily on Malaysian taxpayers.
The total sum misappropriated from the investment fund, established under the Najib administration, was approximately RM51 billion.
As of June 30, 2026, the Malaysian government has paid RM42.5 billion of the fund’s debt and commitments, including principal payments, interest, legal and operational costs, as well as other commitments.
“In addition, the government remains responsible for covering the Government-guaranteed Islamic Medium-Term Note (IMTN) Sukuk amounting to RM8.9 billion,” Liew said during Question Time.
“This sukuk comprises RM5 billion in principal payments and RM3.9 billion in interest, which will mature in 2039. This means that, overall, the 1MDB liabilities that have been and still need to be borne by the government total RM51.4 billion.”
To date, Putrajaya said it has successfully recovered RM31.3 billion in 1MDB-related funds.
“If there are no further fund recoveries in the future, the government will still be forced to bear a remaining balance of RM20.1 billion from the total obligation,” Liew said.
International collaborations have helped Putrajaya recover a sizeable sum of the embezzled funds and assets, but Liew said while efforts to recover the rest are still ongoing, the chances of recouping all is likely impossible.
“Given that a major portion of the recovery efforts yielding significant value has already been successfully realised, it is unlikely that future fund or asset recoveries will be sufficient to cover the entire remaining 1MDB obligation,” he told Parliament’s Lower House.
“Consequently, the government is expected to bear the major portion of the remaining net liabilities, estimated at RM20.1 billion.”
Date: 9 July, 2026 12:00 pm
Source: Malay Mail
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