KUALA LUMPUR, June 25 — Malaysia will need to bear approximately RM34.6 billion (US$8.6billion) to service 1Malaysia Development Bhd’s (1MDB) debt, Maybank Kim Eng Securities said today.

The research firm said in a report that the duration of payment will start next year up to 2023, and the government will probably fully account for it.

It listed the costs as: RM1.7 billion in 2019, RM1.7 billion in 2020, RM2.7 billion in 2021, RM15.4 billion in 2022, and RM13.1 billion in 2023.

To pay back the debts, it suggested buying US dollar bonds from the open market, as the issuance of government and state-guaranteed bonds may decline to RM136 billion this year — down from RM146 billion last year due to a review of infrastructure projects.

The sale of the bonds will probably total RM127 billion in 2019 and RM126 billion in 2020, it said.

This comes as the risk over the bond supply is unlikely this year, following the Finance Ministry’s announcement that Putrajaya is on track to meet its fiscal deficit target of 2.8 per cent of the gross domestic product.