The Ministry of Finance (MOF) in a written parliamentary reply recently said Malaysia still has RM24.46 billion in outstanding 1Malaysia Development Bhd (1MDB) liabilities as at end-September 2025 despite having recovered RM31.2 billion linked to the scandal-hit fund and its former subsidiary SRC International Sdn Bhd (SRC).
MOF also said funds recovered from 1MDB are strictly managed and used only to service existing 1MDB and SRC debt obligations, not for operating or development expenditure.
This response appears to confirm that the financial burden of the country's losses from the 1MDB debacle will continue to be borne by the public at least for the next few generations.
Unfotunately there are no specific legal avenues often exist to pursue personal financial recovery from politicians who have abused their power for personal gain or engaged in criminal mismanagement of public funds such as the 1MDB debacle.
If the politicians had taken up the proposal in June 2016 from the Bar Council to pass a law for a "tort of public misfeasance," which could result in officers being ordered to personally compensate victims for dereliction of duty, the burden on the future generations would be much lesser.
Anyway, even if a law is passed on this, its success often depends on the strength of a judiciary and MACC that are truly independent.
Thus, the politicians should not fret much on this passing if the proposal from the Bar Council is to see the light of the day.
What happens if there is not enough, assuming the government exhausted all legal avenues to recover fully what was stolen via 1MDB, to the balance of the debts still outstanding?
From the dividends from Petronas?
The government said it expects a dividend payout of RM20bil from Petronas for 2026, a drop of approximately RM12 billion as compared to the dividend for 2024, which was RM32bil.
So, it is obvious that the public ie the ordinary rakyat will be paying for it.
How?
Through taxes or austerity measures to be introduced by the present and future government?
Already, in Oct 2025, MOF reportedly said the federal government’s debt servicing charges (DSC) are projected to increase by 7.6% to RM54.3 billion in 2025, accounting for 16.3% of total revenue compared to a 9.0% increase of RM50.5 billion or 15.6% in 2024.
Many within the ordinary rakyat might not grasp or understand the gravity of this.
And the person who inflicted this ie the 1MDB debt obligations will soon be enjoying life in the comfort of his home while the ordinary rakyat, who will be shouldering the shortfall in repaying the debts, will continue to toil and work to pay their taxes to the government that will go towards paying off the 1MDB debts for many more years to come.
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