KUALA LUMPUR (Dec 2): Prime Minister Datuk Seri Anwar Ibrahim told the Dewan Rakyat on Tuesday that Malaysia’s largest debt remains associated with the multibillion-ringgit 1Malaysia Development Bhd (1MDB) scandal.

He said the debt inherited in 2018 was nearly RM50 billion, including RM17 billion in interest commitments.

Anwar said during the prime minister’s question time that the government has repaid RM42 billion of the debt, both principal and interest. He explained that of the sum repaid, RM29 billion was funded by the recovery efforts of the Attorney General’s Chambers, Ministry of Finance, and Malaysian Anti-Corruption Commission, while the remainder came from government coffers.

According to Anwar, total federal debt stood at RM1.32 trillion as of the end of September 2025, or 64% of gross domestic product (GDP).

“Offshore borrowing is RM22.4 billion, also under the RM35 billion limit, and Treasury bill issuance remains within the RM10 billion threshold, currently at RM4 billion,” he said.

Anwar added that the government’s fiscal management will continue to be guided by the Fiscal Responsibility Act, which sets a medium-term target of reducing the deficit to 3% and keeping the debt-to-GDP ratio below 60%.

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