2-12-2025 (KUALA LUMPUR) Malaysia’s largest outstanding liability remains tied to the 1MDB scandal, Prime Minister Datuk Seri Anwar Ibrahim said in Parliament on Tuesday, confirming that the government has already settled RM42 billion of the multi-billion-ringgit debt.
Speaking during Prime Minister’s Question Time, Anwar said the 1MDB obligations inherited in 2018 amounted to nearly RM50 billion, including RM17 billion in interest. He noted that RM29 billion of the repayments came from recovery actions led by the Attorney General’s Chambers, the Ministry of Finance and the Malaysian Anti-Corruption Commission, with the remaining amount covered by federal funds.
Anwar also outlined Malaysia’s broader fiscal position, stating that total federal debt reached RM1.32 trillion at the end of September 2025—equivalent to 64% of GDP. Offshore borrowings stand at RM22.4 billion, he said, below the statutory RM35 billion ceiling, while Treasury bill issuance remains within limits at RM4 billion.
The prime minister added that fiscal policy will continue to follow the Fiscal Responsibility Act, which targets reducing the deficit to 3% and keeping the debt-to-GDP ratio below 60% over the medium term.
