Malaysia bears RM51.4 billion 1MDB debt burden, RM20.1 billion still outstanding

The Malaysian government has spent RM42.5 billion to pay debts and other commitments linked to the 1Malaysia Development Berhad (1MDB) scandal.

Although RM31.3 billion has been recovered so far, the government still expects to bear a net cost of RM20.1 billion if no further funds are recovered.

Deputy Finance Minister Liew Chin Tong said the government had paid RM42.5 billion as of June 30 to settle 1MDB’s debts and commitments, including principal repayments, interest, legal fees, operational costs and other obligations.

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

“This means the total 1MDB liabilities that have been and will continue to be borne by the government amount to RM51.4 billion.

“To date, the government has successfully recovered RM31.3 billion linked to 1MDB.

“If there are no further recoveries in the future, the government will still have to bear the remaining RM20.1 billion of the total obligation,” he told the Dewan Rakyat today.

Liew was responding to a question from Chong Chieng Jen (PH-Stampin) on the total amount of 1MDB debt borne by the federal government.