Government has spent RM42.5 billion on 1MDB debts, net liability estimated at RM20.1 billion

Office towers in Kuala Lumpur with the Petronas Twin Towers in the distance

The government has spent RM42.5 billion paying 1MDB’s debts and commitments up to 31 August 2026, Finance Minister II Datuk Seri Amir Hamzah Azizan told the Dewan Rakyat on 28 October.

He said a further RM8.9 billion is still owed on Islamic sukuk and medium-term notes, made up of RM5 billion in principal and RM3.9 billion in profit, bringing the total paid and payable to RM51.4 billion.

Replying to Lee Chuan How (PH-Ipoh Timor), Amir Hamzah said the government’s net 1MDB liability is estimated at RM20.1 billion.

He said the government is still pursuing the recovery of 1MDB funds and assets through legal action at home and abroad, but the amount recovered from each claim depends on court rulings, appeals, the assets traced and the ability to enforce orders, particularly overseas.

The principal of the sukuk matures in 2039 under the current schedule, though he said this did not mean all claims and recovery efforts would be concluded by then.

Answering a supplementary question from Salamiah Mohd Nor (PH-Temerloh), he said the scandal continues to weigh on the government’s finances, and that governance is being strengthened through new laws, guidelines and controls. He said some of those involved had been convicted and other cases were still before the courts.

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