Not true 1MDB debt fully paid, says Anwar

Prime Minister Anwar Ibrahim has dismissed the assertion that all debts linked to 1MDB have been settled, stating that the Malaysian government still bears significant debt obligations. At a meeting with finance ministry staff, Anwar clarified that earlier reports claiming full repayment of 1MDB-related debts were inaccurate. The finance ministry had previously announced a payment of RM42.5 billion towards 1MDB-related commitments on August 31, including principal repayments, interest, legal fees, and operational costs.

Anwar warned that if no further fund recovery occurs, the government will remain responsible for an additional RM20.1 billion. He emphasized that total national debt might rise due to ongoing debt repayments and the administration of current economic demands. Anwar urged the responsible use of loans to prevent future generations from shouldering excessive government spending, urging new loans to be made only when necessary for economic management and future planning.

Despite the 2027 budget not being able to fulfill all demands, it received positive reception due to the government's efforts to address people's needs. He highlighted various initiatives launched following the budget announcement, such as housing registrations at Bandar Madani and a special RM1,000 aid payment for taxi drivers.

Anwar noted that critics of the budget lacked understanding of the government's economic policies and suggested they study the budget he presented in the Dewan Rakyat on October 9 for clarity.