Government faces RM20.1 billion in 1MDB obligations without further recoveries
The government had paid RM42.5 billion towards 1MDB commitments by Aug 31, 2026, while asset recovery efforts yielded RM31.3 billion.
Malaysia would have to shoulder RM20.1 billion in remaining 1Malaysia Development Bhd (1MDB) obligations unless further funds are recovered, the Ministry of Finance (MOF) said in a written reply to Parliament.
Payments for 1MDB commitments reached RM42.5 billion by Aug 31, 2026, covering principal and interest as well as legal and operating expenses. The ministry put funds recovered through 1MDB asset recovery efforts at RM31.3 billion.
MOF said it would pursue further legal action and closer international cooperation to recover the remaining assets allegedly misappropriated. Recovered money is held in a ministry-supervised trust account and reserved exclusively for 1MDB debt and associated commitments. The ministry said this arrangement enables transparent monitoring of receipts and spending.
For former 1MDB subsidiary SRC International Sdn Bhd, government payments amounted to about RM5.35 billion towards obligations of RM5.66 billion owed to Retirement Fund Inc (KWAP). SRC used its own resources for the remaining RM310 million. The last payment was made on March 28, 2022.
MOF said the federal guarantee on SRC’s KWAP loans required the government to cover outstanding obligations when SRC could not fully repay them.
In a separate reply, MOF put the Federal Land Development Authority (Felda)’s outstanding government-guaranteed loans at RM5.88 billion at end-September. Felda had repaid RM3.04 billion from RM8.92 billion in guaranteed financing raised, while RM980 million in guaranteed sukuk remained unissued.
The government has approved loan guarantees totalling RM9.9 billion for Felda to obtain financing from local banks and capital markets for group projects, investments and its recovery plan.
