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Malaysia recovers $7 billion from 1MDB scandal
ByAinvest
Wednesday, Aug 13, 2025 10:12 pm ET1min read
Malaysia has recovered $7 billion in funds related to the 1MDB scandal, with the government channeling 42.17 billion ringgit to the state investment fund to finance debt repayments and fulfill commitments. The funds were recovered through asset recovery and loans from the Finance Ministry and Minister of Finance Incorporated. The recovery process is ongoing and expected to take years, involving cooperation between local and foreign agencies, legal processes, and settlement negotiations.
Malaysia has recovered 29.7 billion ringgit ($7 billion) of funds linked to 1Malaysia Development Bhd (1MDB) and its former unit SRC International Sdn. since the establishment of the Assets Recovery Trust Account, according to the Finance Ministry [1].As of end-July, 42.17 billion ringgit has been channeled to 1MDB to finance debt repayments and fulfill the company’s commitments. Of this amount, 15.44 billion ringgit was channeled from the Finance Ministry and the Minister of Finance Incorporated in the form of shareholder advances or loans, while 26.73 billion ringgit came from the proceeds of 1MDB’s asset recovery [1].
The recovery process is ongoing and expected to take years, involving cooperation between local and foreign agencies, legal processes, and settlement negotiations. About 28.93 billion ringgit was used to pay 1MDB’s principal debt, while 13.24 billion ringgit was for interest payments and the company’s commitments. 1MDB’s remaining debt involving principal and interest payments until 2039 is 9.02 billion ringgit, comprising principal of 5 billion ringgit and interest of 4.02 billion ringgit [1].
Meanwhile, the Malaysian top court allowed jailed former prime minister Najib Razak to pursue a legal bid for house arrest. Najib, who is serving a prison sentence for crimes linked to 1MDB, is seeking to serve the remainder of his sentence under house arrest [2].
The recovery of funds and Najib's legal battle underscore the complex and ongoing nature of the 1MDB scandal, which has spawned probes in Asia, the US, and Europe.
References:
[1] https://www.bloomberg.com/news/articles/2025-08-14/malaysia-has-recovered-7-billion-in-funds-linked-to-1mdb
[2] https://www.reuters.com/world/asia-pacific/malaysias-top-court-allows-jailed-ex-pm-najib-pursue-legal-bid-house-arrest-2025-08-13/
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