Govt still owes RM8.9b in outstanding 1MDB liabilities, says Anwar
PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim has dismissed claims that all debts linked to 1Malaysia Development Berhad (1MDB) have been fully settled, stressing that the government continues to bear financial obligations arising from the scandal.
Anwar, who is also Finance Minister, said the government remained responsible for servicing outstanding debts and interest payments despite efforts to improve the country’s fiscal position.
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“Some say all the 1MDB debts have been paid. I don’t know where they got that from, or what ‘kitab’ (book) they read.
“That is not true,” he said at the Finance Ministry’s monthly assembly here today.
Anwar acknowledged that Malaysia’s overall debt had increased, but said this was partly due to the need to meet existing repayment obligations.
“The overall debt has increased. That’s true, because old debts have to be paid,” he said.
However, he maintained that the government had made progress in reducing new borrowings despite the challenging economic environment and substantial debt repayment commitments.
“But new borrowing, that is what matters. As we can generally see, it is declining despite the current economic conditions and the substantial debt repayments that still have to be made.”
According to the Finance Ministry’s latest figures, released on Sept 13, the government’s total obligations arising from 1MDB amounted to RM51.4 billion, comprising RM42.5 billion already paid and RM8.9 billion in outstanding liabilities.
The remaining RM8.9 billion relates to government-guaranteed Islamic medium-term notes, comprising RM5 billion in principal and RM3.9 billion in interest, with repayment obligations extending to 2039.
In a written parliamentary reply on Oct 7, the ministry said the government had paid RM42.5 billion as of Aug 31 to meet 1MDB-related commitments, including principal repayments, interest, legal fees and operational costs.
It also reported that RM31.3 billion had been recovered through asset recovery efforts.
Based on the total obligations and funds recovered, the government would still face a net financial burden of RM20.1 billion if no additional funds were recovered.
The ministry said it would continue pursuing legal action and international cooperation to recover assets linked to the scandal and reduce the burden on public finances.