Malaysia still has to pay US$2 billion in 1MDB debts

[KUALA LUMPUR] The Malaysian government must pay US$2.18 billion in remaining debts it incurred from the 1Malaysia Development Berhad (1MDB) scandal, Deputy Finance Minister Liew Chin Tong said on Thursday (Jul 9). 

The liability includes a government-guaranteed Islamic note, or sukuk, that will mature in 2039. It also has to service a RM5 billion (US$1.22 billion) principal and a RM3.9 billion interest for the financing, Liew told Parliament. 

As of end-June, Malaysia has paid RM42.5 billion for 1MDB-related debts, while recovering RM31.3 billion over the scandal, Liew said.

“If there are no further recoveries, the government will have to absorb RM20.1 billion in losses,” Liew said.

The multibillion dollar scandal over the sovereign wealth fund has spawned criminal investigations over several jurisdictions.

The fund was first started by former Malaysian Prime Minister Najib Razak, who has been in jail since 2022 after being convicted for 1MDB-related crimes.

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Businessman Low Taek Jho, the alleged mastermind of the scandal, has been in hiding for years despite Malaysia’s attempts to repatriate him. 

Liew on Thursday denied claims that Low and a Chinese delegation entered Malaysia last year to negotiate a settlement. BLOOMBERG