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1MDB debt not fully settled, PM Anwar insists amid claims

Prime Minister Anwar Ibrahim has disputed assertions that the government has completely discharged its 1Malaysia Development Berhad liabilities, saying Malaysia continues to carry substantial debt obligations from the troubled sovereign wealth fund.

LSN Malaysia · 19 October 2026

1MDB debt not fully settled, PM Anwar insists amid claims

Anwar questioned the credibility of claims suggesting the 1MDB debt has been fully resolved, asserting that the government remains burdened by considerable financial commitments stemming from the fund's collapse. The premier's remarks underscore ongoing concerns about the fiscal impact of 1MDB, which has been the subject of multiple investigations and legal proceedings since 2015.

The 1Malaysia Development Berhad fund, once positioned as a vehicle for sovereign wealth development, became embroiled in one of the world's largest financial scandals, with allegations of misappropriation involving billions of dollars. The fund's dissolution and subsequent restructuring have left Malaysia grappling with substantial debt servicing obligations.

Anwar's clarification comes as the government continues efforts to recover assets and manage the financial fallout from 1MDB's operations. The prime minister's statement signals that any settlement of 1MDB-related liabilities remains incomplete, with Malaysia still shouldering significant financial responsibility. Officials have been working to pursue international legal avenues and asset recovery initiatives to offset some of the fund's outstanding obligations.

The government has previously acknowledged the scale of 1MDB's financial burden on public finances, with recovery efforts spanning multiple jurisdictions. Anwar's latest comments reflect the administration's position that stakeholders should not assume the matter has been definitively resolved.