Govt Settled RM42.5 Billion In 1MDB Debt As Of 2026

The government has paid RM42.5 billion in debt and commitments linked to 1Malaysia Development Bhd (1MDB) as of June 30, 2026, with total outstanding obligations still amounting to RM51.4 billion, Parliament was told.

Deputy Finance Minister Liew Chin Tong said the RM42.5 billion paid included principal repayments, interest, legal costs, operational expenses and other related commitments.

“The government has paid RM42.5 billion in 1Malaysia Development Bhd (1MDB) debts and commitments including principal payments, interest, legal costs and operations as well as other commitments,” Liew said in response to a question from Stampin MP Chong Chieng Jen in the Dewan Rakyat.

He said the government also remains responsible for RM8.9 billion in government-guaranteed Islamic Medium-Term Notes (IMTN), comprising RM5 billion in principal and RM3.9 billion in interest payments, which will mature in 2039.

Liew said the government has so far recovered RM31.3 billion in funds related to 1MDB. Without further recoveries, the remaining net obligation that would need to be borne by the Government is estimated at RM20.1 billion.

The government continues efforts to recover assets linked to the scandal through criminal and civil actions, including legal proceedings against former prime minister Datuk Seri Najib Tun Razak, Datin Seri Rosmah Mansor, Low Taek Jho, also known as Jho Low, as well as other individuals and financial institutions.

Liew said the 1MDB scandal had caused significant financial losses to the Government and affected Malaysia’s international reputation, including perceptions surrounding governance, public institution integrity and fiscal management.

He added that the Government is continuing efforts to strengthen governance and restore global confidence in Malaysia.

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