KUALA LUMPUR (Nov 27): Malaysia still has RM24.46 billion in outstanding 1Malaysia Development Bhd (1MDB) liabilities as at end-September this year, despite having recovered RM31.2 billion linked to the scandal-hit fund and its former subsidiary SRC International Sdn Bhd (SRC).
In a written parliamentary reply on Thursday, the Ministry of Finance (MOF) said the outstanding debt comprises RM9.02 billion in Islamic Medium-Term Notes (IMTN) sukuk — including RM5 billion in principal and RM4.02 billion in interest — and RM15.44 billion in shareholder advances from the ministry and Minister of Finance Inc.
Of the recovered RM31.2 billion, the ministry said the entire amount has been channelled into the Asset Recovery Trust Account (AA MKA), which includes hibah and foreign-exchange adjustments accumulated since the account was established in December 2018.
The ministry added that RM12.43 billion of the total was recovered between 2022 and 2025.
The MOF was responding to Bandar Tun Razak MP Datuk Seri Dr Wan Azizah Wan Ismail, who asked how the government ensures that public funds and assets recovered from high-profile cases since 2022 are utilised for development projects, and what transparent and effective monitoring mechanisms are in place.
The MOF said the AA MKA funds are strictly managed and used only to service existing 1MDB and SRC debt obligations, not for operating or development expenditure, to avoid further strain on public finances.
As at Sept 30, 2025, the AA MKA held a balance of RM5.29 billion — still insufficient to cover the remaining liabilities.
The ministry said it remains committed to intensifying recovery efforts to maximise returns and settle all outstanding 1MDB and SRC debts within the stipulated time frame.
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