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Government’s net 1MDB financial burden stands at RM20.1bil, says Anwar

Government’s net 1MDB financial burden stands at RM20.1bil, says Anwar

By QISTINA SALLEHUDDIN and KHOO GEK SAN

KUALA LUMPUR: The government’s net financial burden from 1Malaysia Development Bhd (1MDB) stands at an estimated RM20.1bil, assuming no further funds or assets are recovered, says Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim.

This net burden comes after deducting RM31.3bil in recovered funds and assets from 1MDB’s total financial obligations of RM51.4bil.

In a parliamentary written reply on Thursday (Oct 22), Anwar, who is also the Prime Minister, revealed that since April 2017, when the government first assumed responsibility for 1MDB's debts, a total of RM42.5bil has been paid out. This comprises RM27.7bil in principal payments and RM14.8bil in interest and other commitments.

He added that outstanding commitments under government-guaranteed Islamic Medium-Term Notes (IMTN) sukuk currently total RM8.9bil (RM5bil in principal and RM3.9bil in interest), which will mature in 2039.

Anwar was responding to Howard Lee Chuan How (PH-Ipoh Timor), who inquired about mechanisms to prevent taxpayers from inheriting similar corporate liabilities and sought assurances that asset recovery efforts would not be compromised by criminal sentencing developments or potential pardons.

Addressing concerns over criminal proceedings, Anwar reaffirmed that the government remains fully committed to pursuing all civil claims and asset recovery efforts related to the state fund.

He stressed that any legal developments regarding an individual’s criminal sentence or royal pardon do not automatically extinguish civil claims aimed at recovering misappropriated public funds.

“Civil claims carry different causes of action and evidential requirements from criminal proceedings,” Anwar explained.

“Therefore, the implications of any decision concerning a sentence or pardon under Article 42 of the Federal Constitution must be examined in light of the scope of that decision and applicable laws.”

He maintained that the government and 1MDB retain full rights to pursue civil lawsuits based on legal merits, evidence, and existing court orders.

“The government maintains a firm position that efforts to recover public funds will continue through all available legal channels, while fully respecting the jurisdiction of the courts and the pardoning powers provided under the Federal Constitution,” he added.


Source: https://www.thestar.com.my/news/nation/2026/10/23/governments-net-1mdb-financial-burden-stands-at-rm201bil-says-anwar


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