Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim has disclosed that Malaysia continues to shoulder a significant portion of debt linked to the 1MDB scandal, with RM9 billion still outstanding despite years of repayments. He noted that the company’s total financial exposure exceeds RM50 billion, underscoring the long-term impact of the controversy on national finances.
During the Ministers’ Question Time in the Dewan Rakyat, Anwar explained that since 2018 the government has already channelled around RM42 billion to settle various 1MDB obligations, including principal amounts, interest, and related commitments. He revealed that the government inherited RM34 billion in principal liabilities, alongside interest commitments estimated at RM17 billion.
While part of the repayments came from seized or recovered 1MDB assets, the amount was insufficient to cover the full burden. Anwar reported that only RM29 billion was funded through recovered assets, forcing the government to rely on RM13 billion in public money to bridge the gap. He described this as a substantial financial loss to the country, emphasising that the scandal continues to weigh heavily on Malaysia’s fiscal position.
According to the prime minister, the remaining RM9 billion is tied to Islamic Medium-Term Notes (Sukuk) maturing up to 2039. This includes RM5 billion in principal and RM4 billion in accumulated interest. He stressed that Malaysia must continue honouring these obligations, as failure to do so would compromise the nation’s financial credibility and stability.
Anwar also addressed broader concerns about the country’s national debt, stating that the government plans to manage repayments progressively in line with existing timelines. This approach, he said, would ensure that ongoing development priorities are not disrupted by sudden or aggressive debt restructuring.
He noted that although rapid debt reduction is technically possible, it would result in heavier burdens on the public through reduced spending, cuts to welfare support, or higher taxes. Instead, the government has opted for a phased strategy, allowing space for economic growth while keeping fiscal consolidation on track.
Anwar added that new borrowings have already been reduced significantly, falling from around RM100 billion previously to between RM7 billion and RM7.5 billion. He said this shift signals a more disciplined fiscal trajectory, one aimed at preventing future crises and restoring long-term financial health.
The prime minister’s remarks reflected ongoing efforts to reconcile the lengthy financial fallout of 1MDB with Malaysia’s developmental ambitions, highlighting the enduring cost of the scandal and the need for careful stewardship of public finances.
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