The 1MDB saga may feel like a scandal of the past, but Prime Minister Dato' Seri Anwar Ibrahim reminded Malaysians in Parliament that the country is still grappling with its most expensive financial disaster: one that continues to drain the nation’s coffers and limit its development ambitions.
Speaking during Prime Minister’s Question Time in the Dewan Rakyat, Anwar revealed that 1MDB remains Malaysia’s single largest government liability, even after years of repayments and global recovery efforts. The numbers are staggering: RM34 billion in principal debt, RM17 billion in interest, bringing the total to nearly RM50 billion - a national burden inherited since 2018.
As of today, the government has already repaid RM42 billion, not for new highways, schools, or digitisation, but to settle a scandal that should never have happened. “We still face pressure from around RM13 billion in remaining 1MDB debt,” Anwar said, highlighting that despite significant progress, Malaysia is not out of the woods.
To Malaysia’s credit, coordinated efforts by the National Audit Department, the Finance Ministry, the Attorney-General’s Chambers, and the Malaysian Anti-Corruption Commission have helped recover RM29 billion so far.
Still, the Prime Minister did not mince his words about the burden carried at the expense of the people’s development. Malaysia could have built hundreds of schools, expanded universities, and upgraded digital infrastructure with the RM42 billion paid to settle 1MDB’s mess up to last year alone. Instead, years of leakages, theft, and corruption have forced the nation into prolonged financial strain.
Yet, taxpayers remain the biggest losers: Malaysia has paid (RM42B) more than it has recovered (RM29B), and repayments (RM13B) are projected to continue until 2039.
Recent settlements, including JPMorgan’s RM1.4 billion payment, and ongoing lawsuits - such as those against Deutsche Bank and Coutts - as well as unresolved arbitration with Goldman Sachs, show that Malaysia is still continuing its battle to recover every last sen.
Anwar’s remarks also came with a broader warning about responsible fiscal management. Malaysia’s federal debt, now at RM1.3 trillion or 64% of GDP, hovers just below the statutory limit. New borrowings have decreased from RM100 billion in 2021 to RM75 billion, reflecting the government’s efforts to rein in spending and meet the targets set under the Fiscal Responsibility Act. The fiscal deficit has also improved - from 5% last year to a projected 3.8% in 2025.
But while 1MDB drains national finances, infrastructure development cannot be frozen. Responding to criticism over the rising cost of the Penang LRT - now RM17 billion - Anwar argued that infrastructure must be evaluated not just in ringgit but in long-term economic impact. The line’s extension into Seberang Perai is meant to serve Malay-majority communities and neighbouring states, mirroring mega projects like the ECRL which benefit the east coast. “Why question Penang LRT but not ECRL?” he asked, pointing out that the LRT is partly funded through bonds repaid over time, not solely through development budget allocations.
But for now, Anwar’s message is clear and sobering: the scandal engineered under Najib’s administration may be a decade old, but its financial wounds are still bleeding - and Malaysians will keep paying the price for years to come.
By: Kpost
Information Source:
Fmt , TheStar , MadeinMalaysia
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