The Malaysian government has announced success in recovering a total of RM27.17 billion in funds linked to the 1Malaysia Development Berhad (1MDB) scandal as of September 30, 2024.
These funds are currently placed in the Asset Recovery Trust Account (AAMKA), with a current balance of RM3.04 billion.
In the Dewan Rakyat session last Monday, the Minister of Youth and Sports, Hannah Yeoh, representing the Minister of Finance II, Datuk Seri Amir Hamzah Azizan emphasized that the government is actively pursuing efforts to restore the embezzled 1MDB funds.
He stressed that every penny lost will continue to be fought for until it is successfully recovered.
The ultimate goal?
Definitely eliminate the debt burden of 1MDB completely and close this black story forever.
Since 2019, the government has allocated RM39.74 billion to repay 1MDB's debt, including bond and coupon interest payments.
However, the journey is still too far.
The government needs to allocate an additional RM9.46 billion until 2039 for the payment of the remaining 1MDB debt.
This allocation includes RM5 billion for the Islamic Medium Term Note (IMTN) sukuk principal which matures on 27 May 2039 and RM4.46 billion for IMTN coupon payments for the period 2024 to 2039.
As of the end of September, a total of RM4.31 billion had been paid in interest since IMTN was issued in 2009.
This recovery step is in line with the recommendations of the Auditor General's Report 2023, which urges the government to immediately maximize asset recovery to reduce the national debt burden.
This is very important, given that Malaysia's debt is now projected to reach RM1.173 trillion in 2023, a figure that needs more serious attention.
Malaysia is at an important crossroads, where every effort to restore this fund involves not only money, but also the people's trust in the government.
What is needed now is transparency and continued commitment from the government to ensure that this story is not repeated.
