The Ministry of Finance (MOF) is closely monitoring a RM4.2 billion compensation claim filed by four companies in liquidation against DBS Bank Ltd at the Singapore High Court over funds allegedly misappropriated from 1Malaysia Development Bhd (1MDB) and SRC International Sdn Bhd.
According to the MOF, the claim, coordinated through the 1MDB Asset Recovery Task Force, centres on five DBS accounts opened in 2013 by four companies whose account-opening documents named Tan Kim Loong, also known as Eric Tan, as the sole beneficial owner and signatory.
The accounts were allegedly used to channel more than US$1 billion in funds linked to 1MDB and SRC between 2013 and 2014.
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said efforts to recover assets go beyond reclaiming lost funds, as the scandal had also damaged public trust, institutional credibility and Malaysia’s international standing.
He said the MADANI Government remained committed to strengthening governance and accountability to prevent a recurrence of similar abuses.
The MOF stated that the government’s total obligations arising from the 1MDB affair stand at RM51.4 billion, comprising RM42.5 billion already paid and RM8.9 billion in outstanding debt.
Malaysia has recovered RM31.3 billion through asset recovery efforts to date, leaving potential losses of about RM20 billion.
Recovery initiatives involve legal proceedings and cooperation with authorities in several jurisdictions, including the United States, Switzerland, the United Kingdom and Singapore.
Among the latest recoveries was a settlement with JPMorgan Chase in August 2025, which contributed RM1.4 billion to the Malaysian Asset Recovery Trust Account. Funds recovered are used to service debts and meet financial obligations linked to 1MDB and SRC, easing the burden on public finances.
