Kuala Lumpur: Malaysia has borne an estimated RM51.4 billion financial burden arising from the 1Malaysia Development Berhad (1MDB) scandal, with taxpayers still expected to shoulder a remaining RM20.1 billion despite the Government’s efforts to recover stolen assets.
The figures were disclosed in the Dewan Rakyat on 9 July 2026 (Thursday) after Stampin MP Chong Chieng Jen questioned the Ministry of Finance on the total cost of the scandal and the progress of asset recovery during Oral Question Time.
Responding on behalf of the Finance Minister, Deputy Finance Minister Liew Chin Tong said that as of 30 June 2026, the Government had paid RM42.5 billion to settle 1MDB’s debts and related liabilities, covering principal repayments, interest, legal costs, and operational expenses. The Government also remains liable for RM8.9 billion in Islamic Medium-Term Notes (IMTN) guarantees maturing in 2039, bringing the country’s total exposure to RM51.4 billion.
Liew said the MADANI Government has so far recovered RM31.3 billion in assets linked to the scandal. However, he acknowledged that most recoverable assets have already been identified and pursued, making it increasingly difficult to recover enough funds to eliminate the remaining RM20.1 billion shortfall.
He said recovery efforts have included the conviction of former prime minister Datuk Seri Najib Razak, civil claims against Datin Seri Rosmah Mansor worth USD346 million, a USD3.78 billion claim against fugitive businessman Jho Low, and a Swiss court order requiring Tarek Obaid and Patrick Mahony to pay USD1.75 billion in compensation to 1MDB.
In his supplementary question, Chong said Malaysians should be grateful that RM31.3 billion had been recovered, arguing that such recoveries were unlikely to have been achieved without the change of Government in 2018. However, he further noted that although Najib has been ordered to pay more than RM11 billion in fines and the Government is pursuing claims exceeding USD3.7 billion against Jho Low, the realistic prospects of recovering these sums appear extremely slim.
Chong also asked how the Government intended to manage the outstanding RM20.1 billion liability, what impact it would have on Malaysia’s fiscal position, and what reforms had been introduced to prevent another financial scandal of similar magnitude.
In response, Liew said the costs of the 1MDB scandal extended beyond direct financial losses to include unrecovered assets, opportunity costs from funds diverted away from development projects and public welfare, as well as damage to Malaysia’s international reputation.
He added that the Government has since introduced several institutional reforms, including the Public Finance and Fiscal Responsibility Act, amendments to the Audit Act to strengthen oversight through a “follow the public money” approach, and new legislation governing government procurement and government-linked companies to improve transparency, accountability, and governance in public finance.
Chong added that the 1MDB scandal remains one of the darkest chapters in Malaysia’s financial history, and its consequences continue to be borne by ordinary Malaysians.
“While the Government must continue every possible effort to recover the remaining stolen assets, it is equally important to institutionalise reforms that strengthen transparency, accountability and integrity in the management of public finances so that no government or individual will ever again be able to abuse public funds at the expense of the people,” he said.
