1MDB scandal spurs biggest funds outflow in 8 months

Kuala Lumpur

ONE of the worst global financial scandals is taking its toll on the world's longest bull market run.

Deepening concerns over 1Malaysia Development Bhd, the embattled state investment fund at the centre of probes from Switzerland to Singapore, has spurred the biggest outflow of foreign funds in eight months. Malaysia's benchmark stock index has erased most of its gains after climbing to this year's high in April. The prolonged impact of 1MDB is prompting investors to seek out other markets in South-east Asia, according to Baring Asset Management.