THE government estimates its net financial burden from 1Malaysia Development Bhd (1MDB) at RM20.1 billion after recovering RM31.3 billion in funds and assets, underscoring the continuing cost to public finances despite years of recovery efforts.
Prime Minister Datuk Seri Anwar Ibrahim said the government would continue pursuing civil claims and asset recovery through available legal channels, stressing that criminal sentences and pardons did not automatically determine the outcome of separate civil proceedings.
“The right of the government and 1MDB to pursue civil claims must be assessed based on the grounds of the claims, evidence and court orders in the respective proceedings.
“Similarly, any asset forfeiture action is subject to the legal provisions and conditions governing such action,” he said in a written parliamentary reply published on Parliament’s website.
Anwar was responding to Howard Lee (PH-Ipoh Timor), who asked whether developments involving the sentences of convicted individuals could affect efforts to recover assets linked to 1MDB.
He said the implications of any sentencing or pardon decision under Article 42 of the Federal Constitution must be assessed according to the scope of the decision and applicable laws.
Since the government began assuming 1MDB-related debts and financial commitments in April 2017, it has paid RM42.5 billion, comprising RM27.7 billion in principal and RM14.8 billion in interest and other commitments.
A further RM8.9 billion remains under government-guaranteed Islamic Medium-Term Notes (IMTN), comprising RM5 billion in principal and RM3.9 billion in interest up to maturity in 2039.
The government’s total financial obligations related to 1MDB, including payments already made and outstanding commitments, stand at RM51.4 billion. After deducting RM31.3 billion in recovered funds and assets, the estimated net burden is RM20.1 billion, assuming no further recoveries.
Anwar said maximising recoveries remained a government priority to meet 1MDB’s obligations, reduce the burden on public finances and protect the interests of Malaysians.
The issue has drawn attention following developments involving former prime minister Datuk Seri Najib Razak, who received a reduction in his sentence from the Federal Territories Pardons Board in February 2024.
Najib was sentenced by the Kuala Lumpur High Court on July 28, 2020, to 12 years’ imprisonment and a RM210 million fine after being convicted on seven charges involving RM42 million belonging to SRC International Sdn Bhd. The Pardons Board halved his prison term and reduced the fine to RM50 million.
Reports in September said Najib had subsequently received a conditional pardon from the Yang di-Pertuan Agong, Sultan Ibrahim, allowing him to serve the remainder of his sentence under house arrest until Aug 23, 2028.
Anwar said asset recovery efforts would continue in accordance with the law, while respecting the jurisdiction of the courts and the constitutional powers of pardon. - October 23, 2026