KUALA LUMPUR (Oct 7): Malaysia still faces RM20.1 billion in outstanding obligations related to 1Malaysia Development Bhd (1MDB) if no additional funds are recovered, according to the Ministry of Finance (MOF).
In a written parliamentary reply, the MOF said the government had paid RM42.5 billion as at Aug 31, 2026 to meet 1MDB-related commitments, including principal, interest, legal and operating costs. To date, it has recovered RM31.3 billion in funds from 1MDB-related asset recovery efforts.
“If no additional funds are recovered in the future, the government will still have to bear the remaining obligations of RM20.1 billion,” the ministry said.
The government will continue to pursue legal action and strengthen international cooperation to maximise recovery of the remaining 1MDB assets allegedly misappropriated, the MOF said.
All recovered funds, managed through a trust account under the ministry's supervision, are earmarked solely for settling 1MDB’s debt obligations and related commitments.
The dedicated account allows the receipt and use of recovered funds to be monitored clearly and transparently, it said.
On 1MDB’s former subsidiary SRC International Sdn Bhd, the MOF said the government had paid about RM5.35 billion to meet the company’s RM5.66 billion obligations to Retirement Fund Inc (KWAP). The remaining RM310 million was covered by SRC’s internal resources, with the final payment made on March 28, 2022.
SRC’s loans from KWAP were guaranteed by the federal government. When the company couldn't fully meet its repayment obligations, the government was required to step in and settle the outstanding obligations.
Felda guarantees
Separately, the MOF said the Federal Land Development Authority (Felda) had RM5.88 billion outstanding loans guaranteed by the government as at end-September.
This is after it repaid RM3.04 billion of the RM8.92 billion government-guaranteed financing it raised. It had yet to issue RM980 million guaranteed sukuk.
The government has approved RM9.9 billion in loan guarantees for Felda to tap local banks and the capital market to finance its group projects, investments and recovery plan.
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