KUALA LUMPUR (July 9): Malaysia will have to shoulder the remaining liabilities of 1Malaysia Development Bhd (1MDB) as most of the assets of the defunct state company have been recovered.

A government-guaranteed Islamic medium term note, comprising RM5 billion principal and RM3.9 billion in interest, is still outstanding on the books, according to the Ministry of Finance (MOF), after paying off RM42.5 billion in debts and liabilities of the company, also known as 1MDB, as at end-June 2026.

Successful asset recoveries totalling RM31.3 billion have helped offset some of the payments, Deputy Finance Minister Liew Chin Tong told the Dewan Rakyat on Thursday.

However, “it is unlikely that future recoveries of funds or assets will be sufficient to cover the remaining 1MDB obligation in full,” he said.  

Malaysia has initiated a slew of legal actions at home and abroad to recover RM20.1 billion related to 1MDB. Global financial institutions such as Deutsche Bank AG and Standard Chartered plc have been sued, as well as specialised corporate management Amicorp, and law firm White & Case.

Criminal and civil proceedings against individuals, including Jho Low and Datin Seri Rosmah Mansor — the wife of former prime minister Datuk Seri Najib Razak, have also been instituted in connection to the scandal. However, there is no certainty of success.

Failure would mean the government will have to step in to pay RM20.1 billion for the remaining obligations, Liew cautioned.

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